Is Lenskart Solutions IPO Good or Bad – Detailed Review

Lenskart Solutions Limited’s IPO is set to open its initial public offering from October 31, 2025, to November 04, 2025. When considering applying for this IPO, potential investors might have questions about whether the Lenskart Solutions IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive Lenskart Solutions IPO review, covering its business operations and fundamental analysis to help you make an informed investment decision.

Lenskart Solutions IPO Review

Lenskart Solutions Limited's IPO is open for subscription from October 31, 2025, to November 04, 2025, with listing expected on November 10, 2025, on NSE and BSE. The company is a market leader in eyewear products, specializing in the manufacture, design, and global sale of prescription eyeglasses and contact lenses. It is the largest organized retailer of prescription eyeglasses in India by volume and is among the world's two largest by B2C eyeglasses sales volumes in Asia in the Financial Year 2025. The company sells products under established brands, including Lenskart, Owndays, and sub-brands like John Jacobs and Vincent Chase. The core business is highly concentrated in prescription eyeglasses, which constituted more than 80% of its revenue as of June 30, 2025. It operates a vertically integrated business model with centralized manufacturing and a global omnichannel distribution network of 2,806 stores across 14 countries. It sold approximately 27.20 million eyewear units in Fiscal 2025.

The company operates within the Global and Asian Eyewear Market, with the Indian market valued at approximately Rs 78,800 crores in Fiscal 2025. The Indian market is projected to grow at a CAGR of approximately 13% in value terms during FY25 to FY30 to reach around Rs 1.483 lakh crores, driven by rising refractive errors and the significant shift toward the organized retail sector, which is projected to reach around 31% by FY30. Market growth is structurally fuelled by the evolution of the category from "function-to-fashion" and the increasing consolidation toward D2C brands.

Lenskart Solutions' financial performance from FY23 to FY25 reflects robust top-line growth and a significant shift to profitability. Revenue from Operations grew from Rs 3,788.03 crores in FY23 to Rs 6,652.52 crores in FY25, achieving a 32.52% CAGR over the period. Profit After Tax (PAT) made a turnaround, improving from a loss of Rs 63.76 crores in FY23 to a Profit of Rs 297.34 crores in FY25. Operating efficiency is high, with the EBITDA Margin improving consistently to a robust 14.60% in FY25. The company maintains good capital efficiency, highlighted by the Return on Capital Employed (RoCE) improving significantly from ?0.48% in FY23 to 13.84% in FY25, reinforcing its strong financial health.

Key strengths include Market Leadership and Brand Command being a largest organized retailer in India by volume, Capital Efficiency and Financial Robustness with 13.84% of RoCE and 32.52% Revenue CAGR from FY23 to FY25, Vertically Integrated Operations and Quality Control which translating to 35% to 40% lower material cost than industry average, and an Omnichannel Network and Global Reach of 2,806 stores across 14 countries. Risks involve Raw Material Cost and Supply Volatility around 24.52% of expenses, Geographic Manufacturing Concentration Risk in the Gurugram industrial cluster, Geopolitical and Import Dependency Risk with 42.21% of purchases from China, and Regulatory Scrutiny with ongoing ED inquiry under FEMA.

The IPO size is Rs 7,278.02 crores, consisting of an Offer for Sale (OFS) of Rs 5,128.02 crores, of which the proceeds will be received by the selling shareholders, and a Fresh Issue of Rs 2,150 crores. The fresh issue proceeds are primarily for capital expenditure on new CoCo stores in India, technology investment, brand marketing, and inorganic acquisitions. Shares are priced in the band of Rs 382 to Rs 402 per share, with a Lot Size of 37 Shares.

Company Overview of Lenskart Solutions IPO

Lenskart Solutions Limited, a market leader in eyewear products, specialising in the design, manufacture, branding, and global sale of prescription eyeglasses and contact lenses. They sell products under established brands, including Lenskart, Owndays, and sub-brands like John Jacobs and Vincent Chase. The company is the largest organized retailer of prescription eyeglasses in India by volume in Fiscal 2025 and is among the world's two largest by B2C eyeglasses sales volumes in Asia in Financial Year 2025.

Its core business focus is on prescription eyeglasses, which constituted more than 80% of its revenue from operations for the three months ended June 30, 2025. The diversified product portfolio includes prescription eyeglasses, sunglasses, contact lenses, and eyewear accessories. The company sold approximately 27.20 million eyewear units in Fiscal 2025. The core operational strength is built around a vertically integrated business model and a continual commitment to quality, demonstrated by its centralized supply chain and automated manufacturing processes in Bhiwadi, Gurugram, Singapore, and the UAE facilities.

The company operates a highly penetrated omnichannel distribution network across India and internationally. As of June 30, 2025, the global network includes 2,806 total stores across 14 countries. The domestic network comprised 2,137 stores, supported by regional manufacturing and logistics capabilities, and the remaining 669 were in regions like Japan, Southeast Asia, the Middle East, and other regions. The promoters, Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, collectively hold a 19.83% stake before the offer. Key leadership includes Peyush Bansal (Chairman, Managing Director, and CEO), Neha Bansal (Executive Director, Global Head of Merchandising), and Amit Chaudhary (Executive Director, Global Head of Expansion). Shrikanta R Damani, the wife of Ace Investor Radhakishan Damani, has also invested around Rs 90 crores.

Industry Overview of Lenskart Solutions IPO

Lenskart Solutions Limited operates within the high-growth Global and Asian Eyewear Market, a sector demonstrating robust expansion primarily driven by increasing refractive error incidence, rising disposable incomes, and the shift towards organized retail. The Indian eyewear market was valued at around Rs 78,800 crores in Fiscal 2025. This strong trajectory is projected to continue, with the Indian market expected to grow at a Compound Annual Growth Rate (CAGR) of approximately 13% in value terms between FY25 and FY30, projected to reach approximately Rs 1.483 lakh crores.

The market growth is structurally fuelled by the rising global incidence of refractive errors, affecting approximately 4 billion individuals, which is around 49% of the global population in FY2025, and a low prescription eyeglasses penetration rate of approximately 35% in India. Crucially, the organized retail sector, which accounted for around 23% of India's prescription eyeglasses sales by value in FY25, is projected to grow approximately 1.6x faster than the unorganized sector, reaching around 31% by FY30 based on projected values. This consolidation is driven by the demand for consistent diagnostics and reliability.

A primary driver of recent growth is the evolution of the category from "function-to-fashion". The share of Direct-to-Consumer (D2C) brands, which are embracing omnichannel integration and digital try-ons, grew to 11-13% of the prescription eyeglasses market value in FY25, supported by more frequent purchases among style-conscious younger consumers. This momentum is tempered by market challenges such as the affordability gap in price-sensitive emerging markets due to high intermediary markups and the structural complexity of manufacturing custom precision eyewear, limiting scalability and consumer access.

Financial Overview of Lenskart Solutions IPO

The financial performance of Lenskart Solutions Limited over the three fiscal years ending March 31, 2023, 2024, and 2025 reflects robust growth in the top line and a significant shift to profitability, driven by efficient scaling of its vertically integrated, omnichannel operations.

Revenue from Operations has shown a consistently strong upward trend. Revenue increased from Rs 3,788.03 crores in FY23 to Rs 5,427.70 crores in FY24, a 43.29% YoY growth, and further rose to Rs 6,652.51 crores in FY25, reflecting a strong CAGR of 32.52% over the period from FY23 to FY25.

In the Operating Efficiency part, performance is marked by structural efficiencies derived from vertical integration and a centralized supply chain. The EBITDA excluding Other Income and exceptional item Margin demonstrated a substantial upward trajectory, improving consistently from 6.86% in FY23 to 12.38% in FY24, and achieving a robust 14.60% in FY25. This momentum continued into the next year, reaching 17.77% for the three months ended June 30, 2025.

Profit After Tax (PAT) has demonstrated a powerful underlying shift, transitioning from a loss of Rs 63.75 crores in FY23 to a reduced loss of Rs 10.15 crores in FY24, turning into a Profit for FY25 of Rs 297.34 crores in FY25. There is a 167.19 crores related to Fair Value through Profit or Loss on Deferred consideration in Other Income for FY25, which has helped the company showcase higher profit.

The Return on Equity (RoE) highlights the turnaround in utilizing shareholders' capital, improving from -1.25% in FY23 to 4.84% in FY25. Crucially, the Return on Capital Employed (RoCE) highlights operational asset utilization, significantly improving from -0.48% in FY23 to 5.08% in FY24 and reaching a strong 13.84% in FY25. This showcases consistent strengthening of capital productivity.

The company has also shown efficiency in working capital management, with Net Working Capital Days improving from 34.52 days in FY24 to 25.64 days in FY25. Total consolidated borrowings stood at Rs 345.93 crores as of March 31, 2025.

Strengths and Risks of Lenskart Solutions IPO

Let's delve into the strengths and weaknesses to assess if the Lenskart Solutions IPO is good or bad for investors.

Strengths

• Market Leadership and Brand Command: Lenskart Solutions is the largest organized retailer of prescription eyeglasses in India by volume and is among the two largest organized retailers of prescription eyeglasses in terms of B2C eyeglasses sales volumes in Asia in Financial Year 2025. The brand holds strong equity, evidenced by being named India’s Most Trusted Eyewear Brand of 2025 by TRA Research.

• Capital Efficiency and Financial Robustness: The Company demonstrated consistent financial improvement, achieving a strong Revenue from Operations CAGR of 32.52%  from FY23-FY25 and increasing its EBITDA excluding Other Income and exceptional item Margin from 6.86% in FY23 to 14.60% in FY25. Its Return on Capital Employed (RoCE) also significantly improved from -0.48% in FY23 to 13.84% in FY25.

• Vertically Integrated Operations and Quality Control: The business model employs a vertically integrated value chain with a centralized supply chain and automated manufacturing, such as a 75% automated Bhiwadi facility. This model allows for end-to-end control, contributing to consistent quality, lower product costs, which is 35% to 40% lower material cost than the industry average in India in FY25, and faster fulfilment.

• Omnichannel Network and Global Reach: The Company operates a highly scaled omnichannel retail platform supported by over 100 million cumulative app downloads and a physical presence of 2,806 stores across 14 countries as of June 30, 2025. This vast network enables high accessibility and a fast intercity logistics network, including next-day delivery in 58 Indian cities for single vision eyeglasses.

• Customer-Centric Innovation: Investment in technology yields personalized customer experiences, such as AI-enabled frame recommendations and 38.59 million virtual try-ons in FY25. The launch of new, functional collections such as Turban Fit, Creatr for Kids, and Phonic smart glasses drives customer purchase frequency, with the average acquisition cohort purchasing 3.62 pairs within two years based on the FY23 cohort.

Risks

• Raw Material Cost and Supply Volatility: The cost of raw materials consumed is a significant portion of expenses, which stands 24.52% of total expenses in FY25, and the practice of purchasing a majority of materials on a spot basis exposes the Company to potential delays, price fluctuations, and supply disruptions.

• Geographic Manufacturing Concentration Risk: A substantial portion of production capacity and key infrastructure is concentrated in the Gurugram industrial cluster (Gurugram and Bhiwadi (near Gurugram) facilities). This can expose operations to amplified risk from localized disruptions, labor unrest, or adverse regional regulatory changes.

• Geopolitical and Import Dependency Risk: The Company has a direct and indirect reliance on the People's Republic of China for the import of raw materials and manufacturing, which stands at 42.21% of total purchases in FY25. This dependence exposes the business to potential disruptions from geopolitical tensions or trade restrictions.

• Regulatory Scrutiny and Enforcement Action: The Company is subject to an ongoing inquiry by the Directorate of Enforcement (ED) under FEMA related to procedural delays in import/export filings. The outcome, including the denial of a No-Objection Certificate (NOC) for Overseas Direct Investment (ODI), poses a challenge to international expansion.

• Franchisee and Operational Control Risk: The Company does not exercise complete operational or financial control over its franchisee-operated retail stores, creating a risk that franchisee actions may be inconsistent with brand standards, potentially damaging reputation and customer experience.

Strategies of Lenskart Solutions IPO 

• Expand Production Capacity and Deepen Vertical Integration: Focus on progressively reducing dependence on imports by deepening manufacturing presence in India, specifically by setting up a new greenfield manufacturing facility in Hyderabad, Telangana.

• Increase Market Penetration and Expand Customer Access Across Channels: Continue the omnichannel expansion strategy by increasing the retail footprint across Metropolitan, Tier 1, and Tier 2+ cities in India and further enhancing the online presence of mobile applications and websites.

• Deepen and Expand Store Network in International Markets: Deepen presence in existing international markets (Japan, Southeast Asia, Middle East) by leveraging unified technology and supply chain, and evaluating opportunities to expand into new international markets through organic growth and strategic acquisitions.

• Continue to Innovate and Expand Product Portfolio: Continuously expand and diversify the brand portfolio and product offerings to address evolving customer needs, including advanced eyewear like smart glasses (Phonic range) and myopia control lenses.

• Invest in New Technologies: Strengthen and scale the end-to-end technology and cloud infrastructure, including implementing AI-based eye testing solutions to enhance accessibility and further integrating AI for frame recommendations and merchandising.

• Continue to strengthen brand across our markets: Invest in brand-building initiatives, including targeted marketing campaigns through digital media, endorsements, sponsorships, and television advertising across India and international markets to enhance brand awareness and relevance.

Lenskart Solutions IPO vs. Peers

In the absence of any listed company in India or globally operating with a similar vertically integrated, technology-driven omnichannel business model, Lenskart Solutions Limited does not have a direct listed peer. Below is a summary of the competitive landscape and general competitor context as disclosed in the Red Herring Prospectus:

Note: The prospectus states there are no listed peers that operate in a similar business model, making peer ratio comparisons unviable.

Objectives of Lenskart Solutions IPO

The offering consists of a total of 18,10,45,160 shares worth Rs 7,278.02 crores, out of which the offer for sale of 12,75,62,573 shares is valued at Rs 5,128.02 crores, and the fresh issue of 5,34,82,587 shares is valued at Rs 2,150 crores, respectively. The selling shareholders in this IPO are:

Peyush Bansal, Neha Bansal, Amit Chaudhary, Sumeet Kapahi, SVF II Lightbulb (Cayman) Limited, Schroders Capital Private Equity Asia Mauritius Limited, PI Opportunities Fund - II, MacRitchie Investments Pte. Ltd., Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP will receive the proceeds from the offer sale. 

However, the fresh issue proceeds will be used for the following objectives:

• Capital Expenditure to set up new Company Owned, Company Operated (CoCo) stores in India (Rs 272.62 crores)

• Covering expenses for lease/rent/license agreements related payments for the CoCo stores operated by Lenskart in India (Rs 591.44 crores)

• Technology and Cloud Infrastructure Investment (Rs 213.37 crores)

• Brand Marketing and Business Promotion Expenses (Rs 320.06 crores)

• Unidentified Inorganic Acquisitions and General Corporate Purposes (Rs 752.51 crores)

Lenskart Solutions IPO Details

IPO Dates

Lenskart Solutions IPO will be open for subscription from October 31, 2025, to November 04, 2025. The allotment of shares to investors is expected to take place on November 06, 2025, and the company is expected to be listed on the NSE and BSE on November 10, 2025.

IPO Issue Price

Lenskart Solutions is offering its shares in the price band of Rs 382 to Rs 402 per share. This means you would require an investment of Rs. 14,874 per lot (37 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Lenskart Solutions is issuing a total number of 18,10,45,160 shares valued at Rs 7,278.02 crores, out of which the offer for sale comprises 12,75,62,573 shares, worth Rs 5,128.02 crores, of which the selling shareholders will receive the proceeds. The remaining 5,34,82,587 shares worth Rs 2,150 crores will be of fresh issue used for the objects of the issue.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on November 06, 2025, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Lenskart Solutions will be listed on the NSE and BSE on November 10, 2025.

IPO Application Link

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