Lenskart’s Big Vision: Decoding India’s Eyewear IPO

Lenskart IPO analysis begins with one of the most anticipated market debuts of the year. Lenskart‘s market debut on November 10, 2025, drew massive attention as the eyewear retailer raised ₹7,278 crore and saw subscriptions of 28.27 times, but the listing told a different story—shares opened below the issue price before recovering. Let’s examine what happened and what experts think about this investment.

The Numbers That Matter

IPO Details

Key Financial Performance (FY25)

• Revenue: ₹6,653 crore (+23% YoY)

• Net Profit: ₹297 crore (vs. ₹10 crore loss in FY24)

• EBITDA Margin: 14.6% (improved from 10%)

• Valuation: 227x P/E ratio, 10.5x Price-to-Sales

One important detail: 70% of the IPO proceeds went to existing shareholders (promoters and investors like SoftBank), while only 30% will fund the company’s expansion plans.

What the Experts Are Saying

The Cautious Camp

Liquide (Financial Analysis Platform) expressed concern about the valuation, noting that at 227 times earnings, the IPO prices in exceptionally high expectations. They suggested that any execution missteps could significantly impact post-listing performance, with limited near-term upside unless profitability improves substantially.

Devina Mehra, Founder of First Global, highlighted that most of FY25’s earnings came from non-core operations, raising questions about sustainability. With a P/E ratio exceeding 200 times, she questioned whether the valuation truly reflects the core business strength.

Dilip Davda, IPO Analyst, was more direct, calling the issue “exorbitantly priced.” He recommended it only for well-informed, risk-seeking investors with medium to long-term investment horizons and surplus cash.

The Balanced Perspective

Finnovate (Investment Research) acknowledged Lenskart’s strong business model and growth momentum but emphasized that current pricing already factors in much of the growth story. They suggested the stock is “worth tracking closely, but entering selectively.”

IPO Watch noted that while short-term investors might benefit from brand recall and market interest, long-term investors should carefully analyze the high valuation, competitive pressures, and execution risks before committing.

The Optimistic View

DSP Asset Managers defended the investment despite acknowledging the expensive valuation, stating that the underlying business remains strong and scalable. They expressed confidence in the company’s long-term potential, suggesting that premium pricing might be justified by future growth.

The Case For Investing

• Market Leadership: Lenskart operates 2,806 stores globally (2,137 in India) and is the largest prescription eyeglasses seller in India. The organized eyewear market accounts for only 4–6% of the total market, leaving enormous room for growth.

• Technology Innovation: With over 100 million app downloads and AI-powered virtual try-on features, Lenskart has successfully merged technology with retail. About 45% of Indian revenue comes from customers who interacted online first.

• Growth Runway: India’s eyewear market is expected to nearly double from ₹78,800 crore in FY25 to ₹1.48 lakh crore by FY30, representing a 13% annual growth rate. Lenskart plans to add 620 new stores by FY29.

• Financial Turnaround: The company turned profitable in FY25 after consecutive losses, demonstrating operational improvements. Revenue grew at 32.5% annually between FY23–FY25, with margins expanding significantly.

• Strong Backing: Investors include SoftBank, Radhakishan Damani (D-Mart founder), Fidelity, and Temasek—heavyweights who rarely bet on uncertain ventures.

The Concerns to Consider

• Premium Valuation: At 227 times earnings, Lenskart is priced for perfection. Any slowdown in growth or margin pressure could lead to significant corrections. Similar new-age IPOs like Paytm and Nykaa struggled post-listing despite initial enthusiasm.

• Limited Capital for Growth: With 70% of proceeds going to selling shareholders rather than business expansion, questions arise about the actual capital available for the ambitious store expansion plans.

• Execution Challenges: Opening 620 stores requires flawless execution. Competition from Titan Eye+, Coolwink, and international brands remains intense. The company’s international operations are not yet profitable.

• Market Behavior: Research shows that 54% of retail IPO investors sell within a week, and 70% exit within a year, suggesting many chase short-term gains rather than long-term value.

What This Means for You?

The tepid listing—opening below the issue price despite 28x subscription—sends a clear message: even with strong demand, the market believes the valuation is stretched. The shares recovered to close slightly above the issue price and gained nearly 7% over two days, showing resilience but not the “pop” many expected.

• For Long-Term Investors: Lenskart has genuine potential in a growing market with strong fundamentals. However, patience is essential. The premium valuation means you’re investing in future potential, not current reality.

• For Short-Term Investors: The listing performance disappointed those expecting quick gains. The stock needs time to prove its valuation through consistent execution.

• For Risk-Averse Investors: Consider waiting for post-listing stability and clearer quarterly performance trends before investing.

The Bottom Line

Lenskart’s IPO represents both opportunity and risk. The company’s strong market position, growth plans, and technology focus are attractive. However, valuation concerns, competition, and execution challenges require careful consideration.

As with any investment, it’s essential to do your own research, understand the business model, and invest only what you’re comfortable with. The stock market has priced in high expectations for Lenskart, and whether it delivers on those expectations will determine its performance in the years ahead.

Remember: This analysis is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making investment decisions.