Lenskart IPO 2025: Visionary Bet or Risky Gaze?

Lenskart IPO 2025: A Visionary Bet or A Risky Gaze?

I’ve been closely following Lenskart’s journey from a scrappy online startup to India’s largest eyewear retailer, and its upcoming IPO has got me excited – and cautious. It’s hard not to admire how Lenskart grew its revenue from under ₹4,000 crore in FY23 to about ₹6,653 crore in FY25, hitting its first net profit of ₹297 crore (FY25) after years of losses.

Backed by marquee investors like SoftBank and Temasek, the company now runs over 2,723 stores worldwide (2,067 in India and 656 overseas)reuters.com, and claims cutting-edge tech (AR try-ons, AI eye tests) to grab market share. As an investor, I see huge potential in an underpenetrated eyewear market – estimates suggest India’s optical market will grow in double digits over the next five years.

But the IPO is priced ambitiously. At ₹382–₹402 per share, Lenskart is targeting a valuation around ₹70,000 crore (about $7.9–8.0 billion). That’s roughly 10–11× FY25 sales and 230× trailing earnings (before adjustments) – multiples that demand strong future growth. In this blog, I’ll dig into Lenskart’s financial history, the IPO details, and how it stacks up against rivals – all from the perspective of someone weighing whether it deserves a place in a portfolio.

Growth History & Financials: A Turnaround Story

Lenskart began in 2010 as an online venture (initially Valyoo Technologies) and opened its first brick-and-mortar store in New Delhi in 2013. For years it burned cash to build scale: revenue climbed steadily (about 32% CAGR between FY23–25), but profits were elusive. FY23 saw a ₹10 crore loss; FY24 a ₹64 crore loss; then FY25 brought a ₹297 crore profit.

However, much of that FY25 profit came from a one-time accounting gain related to its acquisition of Japan’s Owndays. Adjusted for that, FY25 profit was closer to ~₹130 crore (net margin ~1.9%). In practical terms, Lenskart is only now crossing the profitability inflection point (EBITDA margin ~14.6% in FY25) as scale and cost efficiencies kick in.

Key metrics paint a nuanced picture. Its gross margin is very healthy (~70%), thanks to in-house lens labs and product mix. Operating costs are high, but Lenskart is starting to tame them. For example, average revenue per store has risen from about ₹1.9 crore to ₹2.4 crore as the network matures. Even so, operating margin (EBITDA) was low single-digits until FY25, jumping to ~15% in FY25.

The latest quarter (Q1 FY26) also showed a ₹60 crore profit on ₹1,940 crore revenue, though again with a small accounting boost. From a personal POV, this tells me Lenskart’s unit economics are improving, but its profit margins remain thin, especially when scaling rapidly in new markets. I’d watch cash burn and working capital closely. On the balance sheet, it’s reassuring that debt is almost non-existent (debt/equity ~0.06x in FY25) and cash from operations surged to ₹1,231 crore in FY25. That gives the company flexibility for expansion.

Funding & Valuation History: Lenskart has raised over $1.08 billion in 19 funding rounds. Earlier investments were primary capital to build factories and stores; more recently (2023–24) much of the funding was secondary, allowing early backers to exit while marking valuations around $5–6 billion. Notably, SoftBank’s Vision Fund and Chiratae funded the venture until SoftBank partially exited in the latest rounds. The latest private valuations (Nov 2024) implied ~8–9× FY24 sales.

The IPO’s target valuation (~₹70,000 crore) is higher (~10× FY25 sales), which points to investor bets on future growth and tech leverage.

Metric	Lenskart	Titan Eyewear (Titan Co.)	Warby Parker	Specsavers
Primary Market	India/Asia	India	USA/Canada	UK/Europe (global)
FY25 Revenue	₹6,653 cr (~$790M):contentReference[oaicite:25]{index=25}	₹796 cr (Eyecare div.):contentReference[oaicite:26]{index=26}	$214.5M (Q2 2025):contentReference[oaicite:27]{index=27}	£4.18B (2024-25):contentReference[oaicite:28]{index=28}
FY25 Profit (PAT)	₹297 cr (post gain):contentReference[oaicite:29]{index=29}	₹85 cr EBIT:contentReference[oaicite:30]{index=30}	Loss ($1.8M Q2, moving to breakeven):contentReference[oaicite:31]{index=31}	~8–9% margin (approx.)
Retail Presence	2,723 stores (2,067 IN + 656 abroad):contentReference[oaicite:32]{index=32}	550 stores (Titan Eye+):contentReference[oaicite:33]{index=33}	298 stores (North America, 2025):contentReference[oaicite:34]{index=34}	≈2,700 stores
Active Customers	— (millions in India)	— (unorganized market ~90% share)	2.60M (2025):contentReference[oaicite:35]{index=35}	48M+ globally:contentReference[oaicite:36]{index=36}
IPO/Valuation	Target ≈₹70,000 cr (~$8B):contentReference[oaicite:37]{index=37}	Part of Titan Co. (₹60,942 cr revenues, $7.2B):contentReference[oaicite:38]{index=38}	$3.1B market cap (2025):contentReference[oaicite:39]{index=39}	Private

Table: Comparison of Lenskart vs key competitors. Specsavers and Warby Parker lead in revenue and scale; Titan (Eyecare) is much smaller. Lenskart’s valuation far exceeds its peers as of IPO pricing.

IPO Details: Pricing, Timing, and Strategy

Lenskart filed its Draft Red Herring Prospectus in July 2025. The IPO opens Oct 31–Nov 4, 2025 (offers close Nov 2), with allotment likely by Nov 6 and listing around Nov 10. It includes a fresh issue of ₹2,150 crore and an Offer-For-Sale of ~12.75 crore existing shares (by founders and investors).

At the upper price band (₹402), the post-issue market cap would be about ₹70,000 crore. In dollar terms, Reuters estimates that’s roughly $7.9–8.0 billion. This IPO would be one of India’s largest (about $828 million raised).

According to reports, the equity shares will list on the NSE and BSE in India; there’s no official word yet on any U.S. listing or ADR. (So for now, it’s a domestic listing.) Lead managers/bookrunners include Kotak, Morgan Stanley, Goldman Sachs, and others. The fresh proceeds are slated for store expansion (especially company-owned stores), technology, and marketing.

As an investor, I note that a significant portion of shares (worth ~₹1,100 crore) are being sold by promoters– a healthy practice for an IPO but also a signal they’re monetizing part of their stake at these lofty prices.

The pricing reflects lofty expectations. At ₹402, Lenskart is valued at EV/Sales ~9.9× (TTM) and EV/EBITDA ~68× (FY25)livemint.com. Its P/E based on reported profit is over 235× FY25 earnings, or ~535× normalized earnings. In other words, the IPO is priced for much larger future profits. Many analysts urge caution: “the IPO valuations appear stretched relative to fundamentals,” noted one broker.

Peering Through the Glass: Competitor Landscape

To judge if Lenskart is worth these multiples, I compare it against peers. In India, Titan Company’s Eyecare division (Titan Eye+) is the biggest listed competitor. Titan Eyecare posted about ₹796 crore revenue and ₹85 crore EBIT in FY25titancompany.in. It runs ~550 stores (mostly in India).

By contrast, Lenskart is roughly 8× larger in sales and has already pivoted to profit. Of course, Titan’s eyewear is still only ~1–2% of Titan’s ₹60,000+ crore businessen.wikipedia.org. The rest of India’s eyewear market is highly fragmented; organized players (Lawrence & Mayo, GKB, Gangar Opticians, etc.) hold maybe 10–20% total market share, with Lenskart commanding roughly 4–6% of the prescription segment.

That leaves plenty of room to grow in India, but also indicates that most customers still shop at local mom-and-pops, who compete on price and immediacy.

Globally, the closest analogues are Warby Parker in the U.S. and Specsavers in Europe. Warby Parker reported Q2 2025 revenue of $214.5 million, up 14% year-on-year, and an active customer base of 2.60 million. It operates ~298 stores in North America and targets ~$880–888M revenue for FY2025.

Warby is still unprofitable (losing ~$1.8M in Q2) but improving margins with scale (Q2 EBITDA 11.7%). Its market cap is around $3.1 billion – well below Lenskart’s IPO valuation. Specsavers (UK/Europe) is private, but in FY24-25 it did about £4.18 billion in revenue (~$5.3B) with ~48 million customers served.

It has over 2,700 stores worldwide. Clearly, Lenskart is small compared to global incumbents (Specsavers, EssilorLuxottica, etc.) but ambitious. Its omni-channel model (online plus 2,700+ stores) is more akin to Warby’s hybrid approach.

Key Takeaway:

• Valuation: Lenskart is priced far above peers on current metrics. At ~10× sales it’s richer than Warby, and much more than Titan Eyecare.

• Growth potential: Its ~35% recent revenue CAGR and entry into overseas markets could justify premium – but that’s still speculative.

• Market: India’s eyewear market is huge and underorganized. Lenskart only has single-digit share today, so a lot of runway exists. But local price competition is stiff.

• Unit economics: Its inventory turn and gross margins are strong, but rising store and marketing costs have kept net margins low. If it can improve unit economics (e.g. higher same-store revenue, tech-driven service), the premium could be deserved.

Expansion Strategy: From India to the World

Lenskart has aggressively expanded beyond India. After 2010 it focused on India, but by 2018–2022 it moved into Singapore, Malaysia, Thailand, and the Middle East (UAE, Saudi) under its own brand, and in 2022 acquired a majority stake in Japan’s Owndays (a large optical chain).

Today it reports 40% of revenue from outside India, reflecting this global thrust. Reuters notes it’s “expanding in India, the Middle East, Southeast Asia and Japan — markets Bansal calls some of the world’s most myopia-affected”. The company even announced a tech center in New York (2021 press) and launched a USA website (lenskart.us), aiming to tap the $15B potential global market.

On the product front, Lenskart is investing in R&D: it’s building “smart glasses” with Qualcomm and using AI to automate eye exams (partnering with Qualcomm to counter optometrist shortages). In India, it plans to keep opening company-owned (COCO) stores in tier-2/3 cities and franchise (FOFO) in smaller towns. The IPO proceeds explicitly allocate money for new COCO stores and tech upgrades.

In summary, Lenskart is pursuing an omni-channel, tech-heavy strategy worldwide. If they can execute, the market is enormous. The global eyewear market is dominated by a few players, but with COVID accelerating telehealth and D2C trends, Lenskart’s model could appeal. As an investor, I’d look closely at how well its international stores perform (currently more nascent), and how it differentiates from local brands (e.g. Owndays in Asia, eye specialists in the Middle East, Warby in the US).

Future Outlook & Risks: Can Lenskart Keep Its Focus?

Looking ahead, Lenskart’s long-term success will hinge on several factors:

• Sustaining Growth: It needs to maintain a 30–40% annual revenue CAGR for a few years to justify today’s pricelivemint.com. Domestically, expansion to new states and deeper penetration (e.g. through virtual eye exams) can drive this. Internationally, scaling Owndays and other franchises is key. I’ll watch metrics like store rollouts, same-store sales growth, and membership uptake.

• Improving Margins: Today’s EBITDA margins are low (single digits) due to heavy marketing and store investmentslivemint.com. In a mature phase, margin expansion (to high-teens) would calm skeptics. The Mint analysts suggest margins need to rise to ~15–20% eventually. That likely means leveraging tech (AI to reduce optometrist costs), better supply chain (automation in factories), and more own-brand sales (like John Jacobs line with higher markups).

• Competition: In India, unorganized opticians (small shops) still sell ~80% of eyewear, often cheaper. Titan Eye+ is also expanding (its 550 stores grew 13% in Q1 FY26). Globally, Warby’s growing (2.6M customers in US) and Specsavers continues to dominate its markets. Lenskart must strengthen its brand in each market. The IPO was partly pitched as turning Lenskart into a “tech-driven consumer platform” rather than a mere retailer. If that positioning works (e.g. using AR try-ons, home service, etc.), Lenskart could carve out a loyal customer base.

• Market Opportunity: Rising myopia (screen time) and low penetration mean a very large market base. Analysts say India’s eyewear market could triple by 2032, driven by health awareness and insurance schemes. For me, the big question is whether Lenskart will become the organizer of this market (like Titan did for organized watches/jewellery) or just remain a niche.

• Valuation Risk: All told, the IPO seems priced for a nearly mythical growth trajectory. The Economic Times warned that investors will be “paying premium tech valuations for a retail business with single-digit margins”. Even the IPO’s grey-market premium suggests limited upside. As an investor, I’d only bet if I’m comfortable that (1) I have a multi-year horizon, and (2) I believe in Lenskart’s ability to expand profitably. Higher valuations mean more risk of a post-IPO pullback if quarterly results disappoint.

Growth Drivers vs. Concerns:

• Prospects: Lenskart is the category leader with strong online-offline synergies, proprietary manufacturing, and a large addressable market. Its “Buy 1, Give 1”-style CSR (not as fancy as Warby, but it has an eye checkup network) helps with brand building among youth. It’s also insulated by tailoring products for local markets (home try-ons in India, partnership with local optical chains abroad).

• Risks: The IPO valuation implies a 200–500× price/earnings multiple. If growth falters or profit margins don’t improve, the stock could languish. Integration challenges exist too (e.g. franchisee disputes in Karnataka were recently noticed, though stayed by court). Currency and supply-chain risks (they rely on global supply for frames/lenses) also linger. And broadly, India’s IPO market is crowded; investors may rotate out if the first-day pop is minimal.

In my personal calculus, I’m intrigued but cautious. Lenskart’s story is compelling – “the Amazon of eyewear” as CEO Peyush Bansal calls itreuters.com. But public markets will demand accountability on margins and growth. I’d likely take a wait-and-see stance: perhaps subscribe modestly at the lower band (to not miss out), but plan to monitor the post-listing quarters closely. I’d also hedge by considering Titan (for stable eyewear exposure) or global eyewear funds. In other words, only if I have high risk appetite and a long time frame would I dive in.

📈 Investor Checklist

• Market Size: India’s eyewear market is huge and under-penetrated; global market is dominated by few big players. Lenskart is well-placed to capture growth with 70% gross margins.

• Financials: Sales ~₹6,650 cr (FY25) with first profit of ₹297 cr; growth strong (36% Q2 YoY) but margins slim.

• Valuation: IPO priced at ~₹70,000 cr valuation (EV/Sales ~10×) – high by any retail standard.

• Risks: Thin net margins (~2–4%), heavy founder selling (~₹1,100 cr OFS), intense competition (Titan, local stores, Warby, Specsavers).

• Opportunities: Tech-driven differentiation (AI eye exams, smart glasses), aggressive retail expansion (13 markets+), rising vision care demand.

• Sentiment: Mixed – respectable grey market premium (~17%), but many analysts caution a “price-to-dreams” scenario.

• Decision: For risk-tolerant, long-term investors only.

Disclaimer

This post is for informational purposes only and reflects my personal analysis and opinions. It is not investment advice, and I am not a certified financial advisor. Readers should do their own research or consult a professional before making any investment decisions.

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