SUSHIL FINANCE UPCOMING IPO UPDATE - LENSKART SOLUTIONS LIMITED

IPO Details

Company Overview

Lenskart is a technology driven eyewear company with integrated operations spanning designing, manufacturing, branding and retailing. To build tech-enabled supply and distribution solutions that improve access to affordable and quality “Eyewear for All”, they primarily sell prescription eyeglasses, sunglasses, and other products such as contact lenses and eyewear accessories.

India is their largest market, and according to the Redseer Report, they are the largest seller of prescription eyeglasses in terms of volumes sold in India in Financial Year 2025, among organized retailers. They have expanded into select international markets including Japan, Southeast Asia and the Middle East. They are India’s largest, and in Asia, are amongst the two largest, organized retailers of prescription eyeglasses in terms of B2C eyeglasses sales volumes during the Financial Year 2025, according to the Redseer Report. They offer customers a convenient purchase journey through omnichannel retail network.

Lenskart owns and operates centralised manufacturing facilities in India (Bhiwadi, Rajasthan, Gurugram, Haryana), Singapore, and the United Arab Emirates. As of June 30, 2025, they have 2,137 stores in India, of which, 1,831 were owned by them and 306 were franchisee-owned.

Key Highlights

Objects of the Issue

Offer for Sale Up to 127,562,573 Equity Shares of face value of ₹ 2 each. The company will not receive any proceeds from the Offer for sale.

Our View

Lenskart commenced operations in India as an online business in 2010 and opened first retail store in New Delhi in 2013. In FY2025, Lenskart was awarded “India’s Most Trusted Eyewear Brand of 2025” by TRA Research. The growth in global eyewear market has been complemented by a rapid shift from unorganized to organized eyewear retailers across geographies. he organized sector in India is projected to grow approximately 1.6 times faster than the unorganized sector, accounting for approximately 31% of the overall market by the Financial Year 2030.

However, Risks to consider are cost of raw materials (~25% of expense), inability to maintain or improve capacity utilization levels, Intense Competition, Dependence on Franchise & Store Rollout, Losses in the past, International Business Risk, compliance costs and liabilities on the operations, risks inherent in international sales and operations internationally, Slowdowns, breakdowns or shutdowns at any of the manufacturing facilities could have an adverse effect on the business, results of operations, financial condition and cash flows.

On the financial front, the company’s Revenue grew at CAGR 32.52% from FY23 to FY25, while the company just turned Profitable in FY25 and stood at ₹ 297.34 Cr. and ₹ 61.17 Cr. at Q1FY26. EBITDA excluding Other Income and exceptional item margin from 6.86% in FY23 to 14.60% in FY25 to 17.22% in Q1FY26. ROCE stood at 13.84% and Total Borrowings stood at ₹ 335.48 Cr. in Q1FY26.

The issue is priced at a P/BV of 10.94 based on its NAV of Rs. 36.34 as at Q1FY26 and if we annualise FY26 earnings, the P/E stands at ~280x. As per there are no listed companies in India or globally which operate in a similar business model. The issue seems exorbitantly priced.

Lenskart is a vertically integrated eyewear retailer with centralised supply chain, amongst leading large organised retailers of prescription eyeglasses globally and in India, as of FY25. High risk investors, who want to ride the growth story of Lenskart and the new trend of quick fashion in eyewear can apply for medium to long term.