Lenskart IPO Review: 5 Key Points Before you Apply!
The Lenskart Solutions IPO is one of the most significant consumer tech listings of the year. This D2C Unicorn, which revolutionized the Indian eyewear market with its mission of "Eyewear for All," has successfully transitioned from a high-growth startup to a profitable global retailer. The public debut offers investors a chance to bet on a business with strong underlying unit economics.
Final Verdict: Applying a few lots For Small Listing Gains 👓
1. Key IPO Details and Financial Info
The IPO is of a significant size, reflecting the company’s scale, and notably marks a definitive pivot to profitability:
| Particulars | Details |
|---|---|
| IPO Dates | October 31 – November 4, 2025 |
| Price Band | ₹382 - ₹402 per share |
| Total Issue Size | ~₹7,278 Crore |
| Fresh Issue / OFS | ₹2,150 Cr / 13.22 Crore Shares |
| Revenue (FY25) | ₹7,162.8 Crore |
| PAT (FY25) | ₹381 Crore (vs. ₹10.2 Cr Loss in FY24) |
2. Operational Moat: Vertical Integration and Omni-channel
Lenskart's strength lies in controlling the entire value chain, which results in superior margins (Gross Margins at 70%) and efficient cash flow generation (₹1,230 Cr Cash Flows from Operations in FY25, more than most listed startups combined since inception):
- Full Integration: Operations span design, CNC cutting, molding, assembly, and retailing. Roughly 70% of prescription eyeglasses sold in FY25 were manufactured in its own facilities (Bhiwadi, Dubai, Singapore).
- Retail Scale: It is India's largest organized omni-channel chain with 2,806 offline stores globally (2,137 in India). This hybrid model—combining its app with stores for eye tests—has successfully solved the problem of customization in high-involvement eyewear purchasing.
- Brand Portfolio: Brands like John Jacobs, Owndays, and Vincent Chase cater to different price points, with the acquisition of Owndays significantly expanding its international footprint.
3. Growth and Utilization
Lenskart is well-equipped to sustain its aggressive growth without immediate financial pressure:
- Global Growth: It is tapping into high myopic markets like Japan, Singapore, and the Middle East, with growth rates ranging from 10-20%.
- Capital Deployment: The Fresh Issue funds are strategically focused on expansion: ₹273 Cr for new CoCo stores, ₹591 Cr for store lease/rent payments, ₹213 Cr for tech/cloud infrastructure, and ₹752 Cr for inorganic acquisitions and GCP.
- Capacity: The current capacity utilization is adequate (~55%). This is a positive flipside as it means the company can fuel significant growth for the next 3 years without needing major capital expenditure immediately.
4. Valuation and Risk
The valuation reflects the company's growth potential but could be considered rich by some investors. Valuing Lenskart at 30x FY28E EV/EBITDA suggests a fair value of ₹474, implying an upside of 18%. Indian markets typically value high-growth consumer companies like Nykaa and Zomato richly, validating this premium.
Risks to Monitor:
- High Valuation: Any sign of growth slowing below the expected 20%+ mark could lead to a brutal deflation in valuations.
- PE Supply: The high number of shares offered in the OFS indicates a high probability of frequent supply from PE investors post-listing, potentially suppressing the stock price in the short to medium term.
- Litigations & Promoter Stake: Pending litigations and the relatively low promoter holding (common in matured startups) are factors requiring close monitoring.
5. Conclusion: A High-Quality, Long-Term Contender
Lenskart is arguably the finest unicorn going public at the IPO stage, showcasing both massive scale and financial discipline. The strong Anchor book and healthy cash flows provide confidence. While the valuation is slightly aggressive, the company's unique positioning and global potential make it a promising long-term compounding story.
My view: I am applying for listing gains. This is my personal view.
Just a personal view, for educational purposes only.
Lenskart Solutions IPO FAQs (SEO Optimized)
Q. When is the Lenskart Solutions IPO expected to open?
A. The Lenskart Solutions IPO is tentatively expected to open for subscription from October 31, 2025, to November 4, 2025.
Q. Did Lenskart make a profit in the last fiscal year (FY25)?
A. Yes, Lenskart reported a Net Profit of ₹381 crore in FY25, marking a successful turnaround from previous losses.
Q. What is the main strength of Lenskart's business model?
A. The main strength is its vertically integrated, omni-channel approach. Lenskart controls the design, manufacturing, and retail process, enabling efficient cost management and strong profit margins.
Q. What percentage of the Lenskart IPO is reserved for retail investors?
A. The Lenskart IPO has reserved not more than 10% of the Net Offer for Retail Individual Investors (RIIs).
Q. What will Lenskart use the Fresh Issue proceeds for?
A. The ₹2,150 crore Fresh Issue will be primarily used for Capital Expenditure on new stores, store lease payments, technology infrastructure, and funding inorganic acquisitions.