Does Lenskart's vision justify its sky-high valuation?

Summary: Lenskart’s inflated valuation has sparked widespread debate. But behind the froth lies a fast-expanding market, a tech-driven scalable model and a cost structure built for future operating leverage. The real question isn’t whether Lenskart is expensive today, but whether it can grow fast enough to justify its premium. Everyone talked about the ridiculous valuations of Lenskart. Why is its P/E so high? Is it justified? Are the investment bankers and the investors themselves so crazy that this price was even reached? Yet, when the issue opened, it was subscribed multiple times over. It brought forth the paradox between concern and elation in the market. But amid all the frenzy, we wanted to address a couple of fundamental questions: One, how do you value a company that straddles retail and tech, spectacle frames and SaaS-like scalability? Two, what are the key things to watch, track and truly understand about Lenskart before investing in it? 1. Revenue: Growth is the real prescription Forget Lenskart’s frothy 260 times P/E valuation. Even a P/E of 20 would make little sense if growth were absent. But in Lenskart's case, growth is there — and it has a long runway ahead. What separates Lenskart from a regular retailer is that its addressable market is expanding rapidly, and the company is positioned right at the intersection of rising healthcare awareness, lifestyle spending and digital convenience. The factors shaping its growth are not hard to see. The prevalence of refractive errors — nearsightedness, farsightedness and astigmatism — is rising sharply, especially among younger populations (increasing from 21 per cent to 39 per cent between FY20 and FY25), spending long hours on screens. Yet, the penetration of prescription eyewear in India remains low compared to global standards. This is a classic underpenetrated market with structural tailwinds. What makes Lenskart grow? D2C players are expected to rise faster within the organised segment Geographies India Southeast Asia Japan Middle East Prevalence of Refractive Errors (%) FY25 53 65 68 40 Prevalence of Refractive Errors (%) FY30P 62 70 71 42 Penetration of Prescription Eyeglasses (%) FY25 35 40 69 60 Penetration of Prescription Eyeglasses (%) FY30P 41 44 64 60 Organised Share of Prescription Eyeglasses (%) FY25 23 28-30 53 55-60 Organised Share of Prescription Eyeglasses (%) FY30P 30 35-40 59 67-72 Source: Lenskart RHP On top of that, the average selling price (ASP) has been rising, aided by lifestyle upgrades and fashion-conscious consumers. The eyewear segment has quietly moved from a medical

This article was originally published on November 15, 2025.