Lenskart IPO Review: GMP, Risks, Strengths, Valuation, Peer Comparison & More

Lenskart, known for changing the way India shops for eyewear, is debuting on the stock market with a ₹7,278 crore IPO, opened on October 31 and closing on November 4, 2025. Shares are priced between ₹382 and ₹402, and early interest has kept things lively, as the IPO was subscribed 1.13 times on day 1, with solid demand from retail and QIB investors, though non-institutional buyers showed restraint. The GMP jumped to ₹95 on launch but settled lower over the weekend, hinting at cautious optimism. GMP is only a rough indicator, not a guarantee of listing price, so investors should stay alert to rapid changes. In this article, you’ll find the essentials: how Lenskart makes money, where IPO funds will go, key strengths and risks, a peer comparison, and what these numbers mean for you as an investor.

IPO Overview

• IPO Date: October 31 to November 4, 2025
• Total Issue Size: ₹7,278.02 crore
• Price Band: ₹382 to ₹402 per share
• Minimum Investment: ₹14,874
• Lot Size: 37 Shares
• Tentative Allotment Date: November 6, 2025
• Listing Date: November 10, 2025 (Tentative)
• GMP: The GMP for the Lenskart IPO is ₹85, reflecting a 21.14% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 1 of the IPO

On the first day, the Lenskart IPO was subscribed 1.13 times overall, QIBs led with 1.42 times, retail investors followed at 1.32 times, and non-institutional buyers lagged at just 0.41 times. GMP soared to ₹95 on launch compared to ₹70 a day earlier, before cooling to ₹85 over the weekend. This signals strong early buzz but also a touch of caution among traders and sharp-eyed investors tracking the premium.

How Lenskart Makes Money

Lenskart’s story is about blending technology, design, and retail to solve a simple problem - affordable, high-quality eyewear for everyone.

The company earns most of its money from selling prescription eyeglasses, which make up over 80% of its total revenue. It also sells sunglasses, contact lenses, and accessories across India, Southeast Asia, Japan, and the Middle East. As of mid‑2025, Lenskart had 2,806 stores globally, about 2,137 in India and the rest abroad.

It uses a vertically integrated model, which means it controls the entire process - designing frames, manufacturing lenses, and selling directly to the customer. This cuts out middlemen, lowering costs by about 35-40% compared to traditional stores. The company’s large, automated facility in Bhiwadi handles most of this production, ensuring speed and consistent quality. That’s why customers in 58 Indian cities can even get same‑day delivery on their glasses.

On the sales side, Lenskart follows an omnichannel model, a fancy term for selling both online and offline in sync. For example, you may browse frames using its app’s virtual try-on feature, then walk into a store to get a free eye test and finalize your order. Nearly half of Lenskart’s revenue in India comes from customers who start their shopping journey online before buying offline.

Objectives of the IPO

• Expansion of Company-Owned Stores: ₹272.62 crore will be used to open 620 new company-operated (CoCo) stores across India by 2028. This will improve reach, especially in Tier‑2 and Tier‑3 cities where eyewear access is still limited.
• Store Rentals and Lease Payments: ₹591.44 crore is earmarked to pay rent and renew leases for existing stores - helping the company secure prime locations and manage future rental costs.
• Technology Investment: ₹213.38 crore will go into strengthening Lenskart’s tech platforms and cloud systems. This upgrade will support its automated factories, online app, and customer tracking systems.
• Brand and Marketing Spend: ₹320.06 crore will be used for brand promotions and large‑scale marketing campaigns. This is crucial as Lenskart looks to grow its global footprint and stay top‑of‑mind in urban and semi‑urban India.
• Acquisitions and General Purpose: The remaining funds will be used for small acquisitions, new market entry, and working capital needs.

Strengths:

• Strong Revenue Growth: The company’s total revenue climbed sharply from ₹3,928 crore in FY23 to ₹7,009 crore in FY25, a 33.6% annual growth rate. This growth comes from both new store openings and higher online demand.
• From Loss to Profit: Lenskart went from a loss of ₹10 crore in FY24 to a profit of ₹297 crore in FY25. That’s a dramatic turnaround driven by efficiency and better in‑house production. Making more products internally raised its gross margin (product margin) to 68%.
• Fast Expansion, Low Payback: Each new store pays back its cost in roughly 10 months. That means if a store costs ₹1 crore to set up, it earns that much back in less than a year.
• Strong Brand and Loyalty Base: Over 71 lakh people are members of its loyalty program, Lenskart Gold. New customers buy an average of 3.6 pairs of eyewear within two years, double the Indian average.
• Efficient Cash Flow: Working capital days, the time it takes to turn sales into cash, improved from 34 days last year to just 24 days. This means money moves faster across its system, a sign of good financial control.

Risks:

• High Valuation: At a P/E ratio around 228x (~235x post-IPO) and EV/EBITDA near 72–75x, the IPO is priced at a premium. In simple terms, investors are paying ₹228 for every ₹1 the company earned last year. That’s very high, so expectations for fast future growth are built in.
• Imported Materials Dependency: Around 53% of its materials come from China. Any disruption in global trade could raise costs or delay production.
• Reliance on Two Key Factories: Almost all manufacturing happens at Bhiwadi and Gurugram. Any issue at these plants, natural disaster, policy change, or supply problem, could halt production.
• High Rental Costs: Lenskart has lease liabilities worth ₹2,399 crore. A rise in rental rates or failure to renew major store leases could hurt profits.
• Still Competing with Unorganised Players: About 77% of India’s eyewear market is still made up of small, unorganised opticians who sell cheaply and locally. Lenskart must keep its prices competitive to attract customers.

For detailed information, visit Lenskart’s IPO page.

Peer Comparison

Lenskart doesn’t have a direct listed rival with the same integrated model, but compared roughly with players like Titan’s Eyewear division and Specsmakers, it leads in several areas:

• Its store network is 2.5 times larger than the next competitor in India.
• Its average store sales of ₹23,493 per square foot are among the highest in organised eyewear retail.
• Its cost advantage, 35-40% cheaper material sourcing, keeps prices low while maintaining margins.
• Its customer repeat rate (3.6 purchases every two years) beats the market’s average of 1.8.

Lenskart’s Financial Performance

Lenskart has shown a strong financial rebound and steady scaling over the past few years:

Source: RHP, internal calculations

The reported ₹297.3 crore profit in FY25 includes a one-time, non-cash gain of around ₹167 crore related to adjusting payments from a previous acquisition. The real operational profit from running the eyewear business was closer to ₹130 crore.

This means Lenskart’s shift from losses (₹63.8 crore loss in FY23 and ₹10.2 crore in FY24) to clear operational profit signals a powerful turnaround.

This improvement is also reflected in the EBITDA margin (a basic measure of profit on core operations), which improved from 6.86% in FY23 to 14.6% in FY25. The company achieved this by making more products in-house, taking advantage of its centralized supply chain and automated facilities, pushing product margins from 63.9% to nearly 68%.

Balance sheet health has improved too. Borrowings dropped by 38.6% annually between FY23 and FY25 to ₹335.5 crore as of June 2025, primarily due to debt repayments and lease payments. Total assets increased steadily, reaching ₹10,845.7 crore, driven by continued investments in stores, equipment, and new premises.

Lenskart IPO Valuation

The total post‑IPO market value is about ₹70,000 crore. Using FY25 profit, its P/E ratio is around 235x (post-IPO), and its price‑to‑sales ratio is 10.5x.

To explain simply, a P/E of 235 means that investors are willing to pay ₹235 for each ₹1 of profit made. This is considered a “growth” pricing, where the market expects Lenskart to keep growing rapidly for years.

The valuation is steep compared to most retail companies, but Lenskart’s growth record and profitability turnaround may justify some of that optimism. Investors, however, should enter expecting short‑term swings in price post‑listing.

Also Read: Lenskart IPO: 10 Must-Know Facts Before You Invest in the Eyewear Giant

Lenskart Valuation vs the Indian Eyewear Market

Lenskart’s IPO valuation is around ₹70,000 crore, which is nearly 90% of the entire Indian eyewear market size of ₹78,800 crore in FY25. Analysts say this valuation is unusually high compared to the market it currently serves.

Despite being India’s largest organized eyewear retailer, Lenskart has only about a 4-6% share in the total prescription eyewear market, approximately ₹3,150 crore to ₹4,730 crore of the ₹78,800 crore market. This gap signals significant growth potential but also highlights the challenge of scaling in a fragmented market.

Source: RHP, internal calculations

Roughly 77% of India’s eyewear market is unorganized and led by small, local sellers, making expansion into this segment difficult and costly for Lenskart.

The overall Indian eyewear market is forecast to nearly double to ₹1,48,300 crore by 2030, suggesting long-term growth opportunities if Lenskart can significantly increase its market penetration.

The People Behind Lenskart

Lenskart was founded and is still led by four key people: Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi.

• Peyush Bansal is Chairman, MD, and CEO with 17+ years at Lenskart. He has an engineering degree from McGill University and previous experience at Microsoft. He is also a “shark” investor on Shark Tank India, which has boosted Lenskart’s profile. In FY25, Peyush’s fixed salary was ₹5.8 crore. Although he sold shares worth ₹824 crore in the IPO, he remains highly invested with about 9% ownership.
• Neha Bansal, Peyush’s sister, co-founded Lenskart and is Executive Director and Global Head of Merchandising. She is a chartered accountant with over 17 years of experience. Her fixed salary in FY25 was ₹2.35 crore.
• Amit Chaudhary, co-founder and Executive Director, handles global expansion. He has an engineering degree and earned ₹2.72 crore fixed in FY25.
• Sumeet Kapahi, co-founder and Global Head of Sourcing since 2011, earned ₹2.24 crore fixed in FY25.

Together, this team blends technical expertise, strategic vision, and retail experience, driving Lenskart’s rapid growth and innovation.

Who’s Making Money from the IPO?

Out of the ₹7,278 crore raised, ₹5,128 crore will come from the offer for sale part where existing shareholders sell their shares; the company receives no proceeds from this.

Largest institutional seller is SoftBank’s SVF II Lightbulb (Cayman) Limited, liquidating shares worth about ₹1,025.8 crore, with around 5.4x returns. Schroders Capital Private Equity Asia Mauritius Limited is selling shares valued at ₹766.4 crore, reportedly earning nearly 9.8 times their investment.

Other significant long-term investors selling stakes include PI Opportunities Fund - II (₹349.8 crore at 16.7 times return), MacRitchie Investments (₹315.9 crore at 4.1 times), and Alpha Wave Ventures (₹267.9 crore at 3.8 times).

Promoter family members are also cashing out sizable amounts while retaining strong stakes: Neha Bansal is selling shares worth ₹40.6 crore, Sumeet Kapahi and Amit Chaudhary each are selling shares worth ₹115.3 crore, Peyush Bansal is cashing out ₹823.7 crore worth but holds around 9% post-IPO, showing continued commitment.

This IPO provides a profitable exit for early investors while keeping core promoters invested for long-term growth.

Analyst View

Lenskart’s IPO now stands out for more than just its business fundamentals; the day 1 subscription data and grey market trends reveal mixed investor enthusiasm. The IPO was oversubscribed at 1.13 times overall, driven mainly by retail investors (1.32x) and a decent show from QIBs at 1.42x, while non-institutional buyers lagged at 0.41x and employees at 1.1x. Meanwhile, GMP saw a sharp jump from ₹70 pre-IPO to ₹95 on the opening day, then cooled off to ₹85 over the weekend.

The company’s scale and market position remain appealing, especially for those confident in consumer-tech growth, but the rapid shifts in demand and premium signal short-term volatility. Pricing still feels rich; long-term investors might see potential, but aggressive listing gains aren’t a given. Watching how sentiment and subscriptions evolve in the next trading days is crucial before making any big moves.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Lenskart's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.