Eyewear retailer Lenskart Solutions Ltd made a modest debut on the Indian stock exchanges, listing at a 3% discount to its issue price of ₹402 per share. Despite the subdued start, analysts remain divided on the company’s long-term prospects.

Strong Subscription and Market Interest

The ₹7,278 crore IPO received an overwhelming response, being subscribed 28 times overall. The Qualified Institutional Buyers (QIBs) category was subscribed over 40 times, driven by strong participation from foreign investors and mutual funds. The retail segment also saw robust demand, with subscriptions reaching 7.5 times its quota.

Lenskart’s IPO comprised a fresh issue worth ₹2,150 crore and an offer for sale (OFS) of over 12.75 crore shares by existing shareholders. The company’s valuation at the upper price band stood at ₹72,700 crore (USD 7.9 billion).

Financial Performance and Growth Metrics

According to Arihant Capital, Lenskart’s operational revenue grew at a 32.5% CAGR, rising from ₹3,788 crore in FY23 to ₹6,653 crore in FY25. EBITDA surged 3.7x to ₹971 crore during the same period. The company turned profitable in FY25, posting a PAT of ₹297 crore, compared to a loss of ₹64 crore in FY23.

Operational cash flow also improved significantly, increasing 13 times to ₹1,231 crore, while the Return on Capital Employed (ROCE) stood at 13.8%.

Arihant Capital assigned a “Subscribe for Long Term” rating to the issue, citing strong fundamentals, scalability, and profitability.

Analyst Views: Divergent Outlooks

While some brokerages view Lenskart as a long-term opportunity in India’s fast-growing eyewear segment, others have raised concerns about high valuations.

  • SMIFS Ltd highlighted Lenskart’s vertically integrated model—manufacturing over 30–40 million lenses and 25 million frames annually—as a key competitive edge, enabling gross margins of around 70%. The firm expects India’s eyewear market to grow to ₹1.48 trillion by FY30, expanding at a 13% CAGR.
  • Ambit Capital, however, initiated coverage with a “Sell” rating and a target price of ₹337, citing limited free cash flow generation and modest RoCE of around 9%.
  • INVasset PMS also noted that the stock’s valuation at over 230x trailing earnings leaves “little room for execution errors,” though it offers exposure to a leading consumer brand with strong market presence.

Founder’s Perspective

Ahead of the listing, CEO Peyush Bansal said the company’s journey was about “solving a human problem — helping people see clearly.” He added that Lenskart’s focus remains on customer and shareholder value creation.

Early investor Ronnie Screwvala defended the IPO pricing, saying it was “around 20% below actual value” and praised Lenskart’s role in expanding India’s eyewear market beyond traditional players.

Lenskart’s Market Position

Founded in 2010, Lenskart operates an omni-channel model with both online and offline presence across India and several international markets. The company continues to invest in technology, manufacturing automation, and expansion into Tier-2 and Tier-3 cities to reach new customer segments.