Lenskart IPO: 4 Key Points to know about this IPO!
The Lenskart Solutions IPO is gearing up to be one of the blockbuster public issues of the year. This marks a massive milestone for the eyewear retailer, which has successfully scaled to become a true 'Unicorn' in the consumer tech space. The most critical factor driving excitement is the company's recent achievement of robust profitability. Here is my analysis and investment view:
1. The Financial Turn Around: From Loss to Profit
Lenskart has completed the critical transition from being a high-growth, loss-making startup to a profitable giant. This is the single strongest signal for public investors:
| Particulars (Consolidated) | FY25 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Revenue | 7,009.3 | 5,610 |
| Net Profit / (Loss) | 297.3 | (10.2) |
The turnaround to a ₹297.3 Crore PAT in FY25, coupled with a robust 25% revenue growth, validates the company’s scalable unit economics and operational maturity.
2. Market Dominance: Scale and Vertical Integration
Lenskart's business moat is built on two pillars: scale and control. The company is India's and Asia's Largest Eyewear Retailer and operates a highly efficient, end-to-end model:
- Retail Footprint: The company boasts a network of over 2,000 stores globally and serves approximately 1 Crore (10 Million) customers.
- Vertical Integration: Lenskart controls the entire value chain—from lens design and robotic manufacturing (in facilities like Bhiwadi, Rajasthan) to retail distribution. This control eliminates middlemen markups, leading to superior gross margins (~70% in FY25) and lower prices for customers.
- Tech Focus: Heavy investment in AI, 3D facial visualization, and remote eye-testing enhances customer experience and drives higher conversion rates.
3. IPO Structure and Use of Fresh Proceeds
The IPO is a combination of fresh capital injection and an exit for existing investors. The fresh issue component is crucial for fuelling future growth:
| IPO Component & Use | Details |
|---|---|
| Fresh Issue (₹2,150 Cr) | Goes to the company for expansion. |
| Offer For Sale (OFS) | 13.22 Crore Shares (Funds go to selling shareholders: TPG, Kedaara, etc.) |
| Primary Use of Fresh Funds | Setting up new stores (CoCo), Lease/Rental payments for retail expansion, and investment in Tech/Cloud Infrastructure. |
4. Valuation and Final Strategy
While the final price band is TBA, market estimates suggest the IPO is targeting a high valuation (around ₹75,000 Cr to ₹83,000 Cr). With an FY25 EPS of approximately ₹1.77, this translates to a premium P/E multiple.
The strategy should be balanced:
- Listing Gains: Strong brand, positive profit pivot, and high pre-IPO investor interest (like the recent Damani placement) are powerful short-term catalysts that should ensure Small-Reasonable Listing Gains.
- Long-Term View: The long-term performance hinges on sustained international expansion and margin growth. The stock is a premium quality consumer stock that requires patience.
Just a personal view, for educational purposes only. Do your own due diligence before applying.
Lenskart IPO FAQs
Q. When is the Lenskart Solutions IPO expected to open?
A. The Lenskart Solutions IPO is tentatively expected to open for subscription between October 30, 2025, and November 3, 2025.
Q. Did Lenskart make a profit in the last fiscal year (FY25)?
A. Yes, Lenskart reported a substantial Net Profit of ₹297.3 crore in FY25, marking a successful and material turnaround from a net loss in the preceding year.
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 faster product delivery across its 2,000+ stores.
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 is the latest Lenskart unlisted share price (GMP)?
A. As of October 22, 2025, reports indicate the unlisted share price (used as a proxy for GMP) is around ₹510 per share, reflecting strong investor demand ahead of the listing.
Q. Will the Fresh Issue proceeds fund the company's expansion?
A. Yes, the ₹2,150 crore Fresh Issue will be primarily used for Capital Expenditure on new Company-Owned, Company-Operated (CoCo) stores, technology infrastructure, and brand promotion expenses.