IPO Deep Discovery: Lenskart IPO - India’s Eyewear Giant Faces the Valuation

IPO Deep Discovery: Lenskart IPO - India’s Eyewear Giant Faces the Valuation Question

What’s going on, everyone? Today we’re tackling one of the most polarizing IPOs to hit Indian markets in 2025 - and trust me, this one has everyone talking. We’re diving into Lenskart Solutions, the eyewear unicorn that’s asking retail investors to value it at a staggering ₹70,000 crore.

But here’s where it gets spicy: the internet is absolutely roasting this offering. Reddit threads are calling to “destroy the Lenskart IPO”, veteran investors like Shankar Sharma are publicly calling it overvalued, and even mutual fund managers are getting dragged for participating in the anchor book. This isn’t just your typical IPO skepticism - there’s genuine fury out there.

So what’s really going on? Is this the Shark Tank judge finally getting a taste of his own medicine? Or are investors missing the bigger picture of India’s eyewear revolution? Today, we’ll break down Lenskart’s business model, dissect the competitive landscape, analyze why social media is melting down over this IPO, and figure out whether this offering is a visionary bet on India’s growth or an overhyped exit for early investors.

Buckle up - this is going to be a wild ride through one of 2025’s most controversial public offerings.

Industry Context: India’s Eyewear Market is Exploding

Before we get into the Lenskart drama, let’s understand the massive opportunity we’re talking about here. India’s eyewear market is at an inflection point that only happens once in a generation.

The numbers are staggering: India’s eyewear market was valued at $10.4 billion in 2024 and is projected to nearly double to $19.6 billion by 2033, growing at a 7% CAGR. But here’s the crazy part - 770 million Indians needed vision correction as of FY25, which is 53% of the country’s population. By 2030, that number jumps to 940 million people - almost 6 out of every 10 Indians.

Yet despite this massive need, only about 35% of Indians actually wear prescription glasses. Compare that to developed markets like the US and Japan where 69-88% of people who need glasses actually wear them. This penetration gap represents an absolutely enormous untapped market.

What’s driving this? Three mega-trends: screen time explosion from smartphones and remote work causing digital eye strain, rising disposable incomes making eyewear more affordable, and the shift from unorganized local shops to organized retail players offering branded products.

And here’s the kicker - the organized retail segment currently accounts for only 18-20% of India’s eyewear market, but it’s projected to capture over 30% by 2030. This is a market consolidation play happening in real-time, and Lenskart is positioned as the largest organized player ready to capitalize on this shift.

Business Model: The Vertical Integration Play

So how does Lenskart actually make money? This isn’t your grandfather’s optical store - Lenskart has built something genuinely different.

The Vertical Integration Advantage

Lenskart controls the entire value chain from design to delivery. They own manufacturing facilities in Bhiwadi (Rajasthan) and Gurugram, with an annual capacity to produce 50 million lenses and 25 million frames. Their Bhiwadi plant is 75% automated and ranks among the top global prescription eyewear manufacturing facilities.

This isn’t just about making glasses - it’s about controlling costs. In-house manufacturing saves them approximately 35% on costs compared to traditional retailers who rely on third-party suppliers. That cost advantage translates into gross margins of nearly 70% - on par with top global players like Germany’s Fielmann and Japan’s JINS.

The Omnichannel Revolution

Lenskart operates 2,806 stores globally - 2,137 in India and 669 internationally across Southeast Asia and the Middle East. But here’s what makes them different: 44.8% of their Indian revenue comes from customers who interact digitally before purchasing - through their app, website, or social media - even if they ultimately buy in a physical store.

They’ve cracked something traditional optical stores couldn’t: merging the convenience of online shopping with the trust and try-on experience of physical retail. Their “Home Try-On” service operates through 323 home agents who conduct doorstep eye tests and product trials. The mobile app has over 100 million downloads.

Revenue Streams and Financial Performance

Lenskart’s primary revenue comes from selling prescription eyeglasses (over 80% of revenue), with additional income from sunglasses, contact lenses, and accessories. They’ve built an extensive portfolio of proprietary brands - Vincent Chase, John Jacobs, Lenskart Air, and the acquired Owndays brand targeting different price segments.

The financial trajectory shows remarkable growth: revenue jumped from ₹5,428 crores in FY24 to ₹6,652 crores in FY25, a 22.6% increase. More impressively, EBITDA surged 93% to ₹971 crores, with margins improving from 6.9% to 14.6%. The company turned profitable in FY25 with a net profit of ₹297 crores after years of losses.

But - and this is important - that profit includes a one-time gain from revaluing their Owndays acquisition. Strip out that accounting adjustment, and the actual operational profit drops to around ₹130 crores, giving them a real net margin of just 1.9%.youtube​

Growth Plans: Aggressive Expansion Meets International Ambitions

Lenskart isn’t standing still - they’re doubling down on growth across multiple fronts.

Store Expansion Blitz

The company plans to add over 620 new company-owned stores over the next three years, with a specific focus on penetrating tier-2 and tier-3 cities where organized retail is still nascent. Store economics are impressive: the average payback period is just 10 months compared to the industry average of 18-24 months.

International Growth Through Owndays

In 2022, Lenskart acquired a majority stake in Japan’s Owndays for $400 million, instantly expanding their presence to 13 Asian markets including Singapore, Thailand, Taiwan, Philippines, Indonesia, Malaysia, and Japan. Owndays operates over 460 stores and targets the premium segment while Lenskart focuses on mass-market affordability.

As of FY25, approximately 40% of Lenskart’s revenue now comes from international markets. They’re not just an Indian company anymore - they’re building a pan-Asian eyewear empire.

Technology and Product Innovation

Lenskart is investing heavily in technology differentiation: AI-powered virtual try-ons, remote eye testing through 164 optometrists serving 13 million customers, and smart glasses in partnership with Qualcomm. They’ve launched over 105 new eyewear collections in FY25 alone, mimicking fast-fashion players like Zara with rapid product cycles.

The IPO proceeds of ₹2,150 crores from the fresh issue will fund new store expansion, technology and cloud infrastructure, brand marketing, and potential acquisitions.

Risks & Challenges: The Clouds Over the Vision

But let’s pump the brakes and talk about the serious headwinds Lenskart faces.

The China Dependency Problem

Here’s a big one: 75% of Lenskart’s raw materials are imported, with 46% coming from China, Korea, and Singapore. In Q1 FY26, direct imports from China alone accounted for 53.38% of total purchases. Any supply chain disruption, currency volatility, or geopolitical tension could hammer their cost structure and margins.

Hyper-Competitive Landscape

Lenskart operates in a market that’s still 77% unorganized. While that’s an opportunity, it also means they’re fighting thousands of small local shops on price every single day. On the organized side, they face Titan Eye+ (backed by the Tata Group with 900+ stores), global giants like EssilorLuxottica (Ray-Ban), Warby Parker, and emerging digital players.

The Profitability Question

Despite turning profitable in FY25, Lenskart’s operational margins remain razor-thin at around 1.9% when you remove one-time gains. They spent ₹6,619 crores to generate ₹6,652 crores in revenue - essentially ₹0.99 in costs for every ₹1 earned. Scaling profitable growth while maintaining competitive pricing is going to be brutal.

Store Expansion Capital Intensity

Opening 620+ new stores requires massive capital and operational resources. Rising rentals, increased competition for prime locations, and the need to maintain profitability at the store level create execution risk. If consumer spending slows or competition intensifies, those stores could become expensive liabilities.

Financials: Strong Growth, But Expensive Entry

Let’s talk numbers - because this is where the controversy really heats up.

Revenue and Profitability Trends

• FY23: Revenue ₹3,788 crores, Loss ₹64 crores
• FY24: Revenue ₹5,428 crores, Loss ₹10 crores
• FY25: Revenue ₹6,652 crores, Profit ₹297 crores (₹130 crores excluding one-time gains)

The revenue CAGR of 32.5% over FY23-25 is impressive, and EBITDA grew at 92.3% CAGR. Return on equity hit 45% in FY25, showcasing strong capital efficiency.

The Valuation Debate

At the upper price band of ₹402 per share, Lenskart is valued at approximately ₹70,000 crores ($8.5 billion). Let’s break down what investors are being asked to pay:

• Price-to-Earnings (P/E): 230-535x depending on whether you include the one-time gain
• EV/Sales: 9.9-10x on trailing twelve months
• EV/EBITDA: 68x on FY25 numbers

To put this in perspective: a P/E of 30-40x is normal for established brands, 70x is high for fast-growing retail, but 200-500x is typically reserved for high-growth tech startups, not eyewear retailers.youtube​

IPO Structure

The ₹7,278 crore offering comprises:

• Fresh Issue: ₹2,150 crores (for expansion)
• Offer for Sale: ₹5,128 crores (existing shareholders exiting)

Major sellers include SoftBank, Kedaara Capital, Temasek, and founder Peyush Bansal himself selling shares worth ₹824 crores. That’s 70% of the IPO being an exit for early investors rather than capital for growth.

Competitive Landscape: David vs. Goliaths… or Goliath vs. Davids?

So how does Lenskart stack up against the competition?

Domestic Competition

Titan Eye+ is Lenskart’s biggest organized rival in India, backed by the Tata Group with 900+ stores and a strong premium positioning. However, Lenskart has more than double the store count and significantly higher revenue. Other traditional players like Lawrence & Mayo, GKB Opticals, and Vision Express have at least 65% lower revenue than Lenskart in India.

Global Comparisons

This is where it gets interesting. Warby Parker, the U.S. eyewear disruptor that pioneered the direct-to-consumer model, is publicly listed at around $2 billion valuation - a quarter of what Lenskart is seeking. EssilorLuxottica (Ray-Ban parent) dominates globally but operates in the premium luxury segment.

Lenskart’s acquired brand Owndays competes in the premium minimalist segment across Japan and Southeast Asia, giving them geographic and price segment diversification.

Competitive Advantages

Lenskart’s moat includes:

• Scale : Largest organized eyewear retailer in India by store count and volume
• Vertical integration : Third-largest prescription eyewear manufacturer globally among organized retailers
• Technology edge : 100 million app downloads, AI try-ons, remote testing
• Brand portfolio : Multiple sub-brands covering every price point

Competitive Disadvantages

• Lower margins than best-in-class players like Bajaj Finance (different industry but comparable PE multiples)
• Fragmented market with 77% unorganized players competing on price
• Import dependency creating supply chain vulnerability

Why Lenskart IPO is Getting So Much Hate on Social Media (And What’s the Truth Behind It)

Here’s where things get really interesting. The Lenskart IPO has triggered an absolute firestorm on social media, and we need to separate legitimate concerns from outrage theater.

The Reddit Rebellion

Multiple Reddit threads on r/IndianStockMarket are calling for investors to actively “destroy” the Lenskart IPO. One highly upvoted post declared: “We need to stop this. Criticize and ridicule Lenskart IPO everywhere, on Twitter, Instagram, YouTube. Put up posters outside Lenskart stores”.

The criticism centers on several key points:

1. The Shark Tank Irony

The internet is having a field day with the fact that Peyush Bansal - who spent years on Shark Tank India grilling entrepreneurs about their valuations - is now asking for what many consider an absurd valuation himself. One viral post said: “If Peyush Bansal pitched Lenskart’s valuation to Shark Tank’s Peyush Bansal, he would have got rejected”.

Critics point out that Bansal’s response to valuation questions has been dismissive. When asked about the ₹70,000 crore valuation, he essentially said, “It’s not my job to decide valuation… I understand it less than others in the ecosystem”. For someone who spent years lecturing entrepreneurs on understanding their valuations, this didn’t sit well with retail investors.

2. The Valuation Time Warp

Here’s what’s really making people angry: In July 2025, Peyush Bansal reportedly took a ₹200 crore loan to buy additional shares of Lenskart at a valuation of around ₹8,500 crores. Just three months later in October, the IPO values the company at ₹70,000 crores - an 8x increase in 90 days.

Reddit users are asking the right question: “What changed? Did the company suddenly become eight times more robust? Or has the market narrative simply become significantly more pronounced?”. To many retail investors, this looks like insiders marking up their books right before offloading to the public.

3. The Mutual Fund Controversy

The anchor book for Lenskart received bids worth ₹68,000 crores - nearly 10x the anchor allocation and 20x oversubscribed. A total of 22 mutual fund AMCs participated, and this triggered brutal criticism from LKR Investors founder Lalit Rathi.

Rathi posted on X: “Half of India’s fund industry queued up for an IPO at obscene valuations. A company at 12x revenue - and every one of these so-called ‘valuation-conscious’ fund managers jumped in without hesitation. Tomorrow, they’ll sit on panels lecturing retail investors about discipline, margin of safety, and long-term investing. But when the hype train rolls in, principles vanish faster than logic”.

The argument: If it’s just a 0.01% portfolio allocation, why participate at all if you don’t believe in the valuation? To critics, this looks like fund managers chasing visibility rather than making disciplined investment decisions.

4. The “Big Investors Exit, Small Investors Enter” Narrative

₹5,128 crores of the ₹7,278 crore IPO is an offer for sale - meaning 70% of the money raised goes to existing shareholders, not the company. SoftBank, Kedaara Capital, Temasek, and the founders themselves are selling significant stakes.

One Reddit user summarized the sentiment: “Major investors like SoftBank bought in at lower prices and are now selling to you at inflated rates. Once the stock is listed, the price could drop, leaving you with losses. This is our exit strategy”.

5. The One-Time Gain Controversy

Financial analysts pointed out that Lenskart’s FY25 profit of ₹297 crores includes a one-time gain from revaluing the Owndays acquisition. When you remove this accounting adjustment, the actual operational profit falls to around ₹130 crores - a net margin of just 1.9%.

A viral YouTube video titled “Is Peyush Bansal Overvaluing His Company?” highlighted: “Lenskart reduced the value of what it had to pay Owndays and that drop showed up as a gain in the books. In short, a paper profit, not an operational one”. This feels like financial engineering to make the IPO look more attractive.youtube​

The Truth Behind the Hate

So what’s legitimate criticism versus internet mob mentality?

Legitimate Concerns:

• The P/E ratio of 230x is objectively expensive for a retail business with 1.9% operational margins
• The 8x valuation jump in 90 days lacks fundamental business justification
• 70% of proceeds going to selling shareholders rather than company growth is a red flag
• The one-time accounting gain masking weak operational profitability deserves scrutiny

The Counterarguments:

Veteran investor Shankar Sharma - who initially called Lenskart overvalued - later defended the IPO, stating: “At ~10x sales, it’s a steal compared to P/sales valuations of Paytm, Zomato, PB, CarTrade, etc., who IPO’d at 25-50x their revenues (with plenty of losses too)”.

Sharma argues there’s an “organized campaign” against Lenskart and that comparing it to earlier tech IPOs that debuted at 25-50x sales makes the 10x sales multiple look conservative.

Market analysts point out that the decent grey market premium of 17-18% despite elevated valuations suggests the market is viewing Lenskart as a technology company that can scale rapidly, not just a retail chain.

The Bottom Line on Social Media Hate

The outrage is a mix of:

• Legitimate valuation concerns based on expensive multiples and thin operational margins
• Retail investor frustration with a pattern of hyped IPOs that underperform post-listing (Paytm, Nykaa memories still fresh)
• Schadenfreude toward a Shark Tank judge who criticized valuations now asking for a premium
• Herd mentality where one viral post triggers copycat criticism

The truth? Lenskart is neither the “steal of the century” nor “the worst IPO ever.” It’s an expensive but legitimate bet on India’s eyewear revolution that comes with significant execution risk.

IPO Outlook: Vision or Valuation Mirage?

So let’s cut through the noise and talk about what investors are actually getting here.

Why Investors Are Excited

• Market Leadership : Lenskart is the undisputed organized retail leader in India’s eyewear market with 2x the stores of Titan Eye+
• Structural Growth Opportunity : 770 million Indians need vision correction but only 35% wear glasses - massive penetration upside​
• Vertical Integration Moat : 70% gross margins and 35% cost savings from in-house manufacturing create sustainable competitive advantages
• Technology Differentiation : 100 million app downloads, AI try-ons, and omnichannel integration that traditional players can’t match
• Marquee Investor Backing : SoftBank, Temasek, Premji Invest, and billionaire Radhakishan Damani’s ₹90 crore pre-IPO investment signal confidence
• International Expansion Optionality : Owndays acquisition and 40% international revenue provide geographic diversification

Red Flags and Reasons for Caution

• Nosebleed Valuation : 230x P/E and 10x sales is pricing in perfect execution for years to come
• Wafer-Thin Operational Margins : 1.9% net margin (ex one-time gains) leaves no room for error
• Heavy Import Dependency : 75% imported raw materials with 53% from China creates supply chain risk
• Limited Total Addressable Market : India’s entire eyewear market is ₹74,000 crores, yet Lenskart seeks ₹70,000 crore valuation
• Insider Selling : Founders and early investors offloading ₹5,128 crores suggests they believe current valuation is peak
• Competitive Intensity : 77% unorganized market means constant price pressure; organized players like Titan Eye+ have deep pockets​

The Long-Term Verdict: High-Risk, High-Potential

Lenskart is not a scam, but it’s also not a slam-dunk investment. This is a high-risk, high-potential opportunity best suited for investors with:

• Long-term investment horizon (5+ years)
• High risk tolerance
• Conviction in India’s consumer growth story
• Understanding that listing gains may be limited given the expensive valuation

The bull case is straightforward: Lenskart executes on store expansion, maintains market leadership, captures the shift from unorganized to organized retail, and scales international operations. In that scenario, today’s valuation could look reasonable in 5-7 years.

The bear case is equally clear: Margins compress under competitive pressure, store expansion disappoints, import costs surge, or consumer spending slows. In that scenario, the stock could trade significantly below IPO price for years (think Paytm, Nykaa post-listing struggles).

Brokerage Recommendations are Mixed:

• SIMFS : “High-risk, high-potential opportunity” - Subscribe for long term
• Choice Broking : “Best suited for investors with higher risk appetite” - Subscribe for long term
• Nirmal Bang : “Prima facie looks expensive” at FY25 P/E of 235x
• SBI Securities : “Valuation seems stretched, listing gains likely muted”

Closing: The Great Indian Eyewear Bet

So here’s the bottom line after all our analysis.

Lenskart has built something genuinely impressive - a vertically integrated, technology-driven, omnichannel eyewear empire that’s positioned to capture India’s massive vision correction opportunity. The 770 million Indians who need glasses but don’t wear them represent one of the largest addressable markets in consumer retail.

The business fundamentals are real: market leadership, vertical integration, improving margins, and a clear path to scaling profitable growth. This isn’t vaporware or a story stock with no revenue - Lenskart is generating ₹6,652 crores in annual revenue and has turned profitable.

But - and this is critical - valuation matters. Paying 230x earnings for a retail business with 1.9% operational margins is asking investors to bet on perfect execution for years to come. When 70% of the IPO proceeds go to existing shareholders exiting rather than company growth, that’s a signal about where smart money thinks we are in the valuation cycle.

The social media outrage, while sometimes over-the-top, isn’t entirely wrong. The Shark Tank judge who spent years lecturing entrepreneurs on valuation discipline is now asking retail investors to pay a valuation that would get laughed out of most pitch rooms. The 8x valuation increase in 90 days strains credibility. And mutual fund managers piling into the anchor book “for visibility” while preaching discipline to retail investors is peak hypocrisy.

So what should you do?

If you’re a retail investor looking for listing gains, the grey market premium of 17% suggests some upside, but remember - this isn’t guaranteed and the expensive valuation limits pop potential.

If you’re a long-term investor, ask yourself: Do I believe India’s eyewear market will grow from ₹74,000 crores to ₹1.48 lakh crores by 2030? Do I believe Lenskart will capture and maintain dominant market share? Do I believe they can expand margins from 1.9% to mid-single digits? If yes to all three, this could be a multi-bagger over 5-7 years.

If you’re risk-averse or need near-term returns, this isn’t the IPO for you. The valuation is expensive, execution risk is high, and the stock could easily trade below IPO price for quarters or even years if growth disappoints.

The truth about Lenskart isn’t black or white - it’s deeply nuanced. This is a legitimate business with real growth potential priced at an expensive but not entirely irrational valuation. Whether it works out depends entirely on Lenskart’s ability to execute flawlessly in a brutally competitive, margin-compressed industry while maintaining market leadership against deep-pocketed incumbents and scrappy unorganized players.

Great businesses aren’t always great investments - not at any price. And expensive IPOs can still become multi-baggers - if the business delivers. With Lenskart, we’re about to find out which side of that coin we’re on.

That’s our deep discovery into the Lenskart IPO controversy. Whether you’re team “avoid this overvalued exit” or team “bet on India’s eyewear revolution,” make sure you understand why you’re making that call - because this one’s going to be a wild ride either way.

Disclaimer : This is analysis for market available information. Not a financial advisory of any sort . Readers advised to use their own discretion.

Originally published on Substack