Lenskart IPO

Lenskart’s revenue from operations has grown at an annual rate of 32.5% between FY23 to FY25 and reached ₹6,653 crore in FY25 from ₹3,788 crore in FY23.

The company significantly improved its EBITDA margin from 6.86% in FY23 to 14.60% in FY25 while its EBITDA has surged 93.4% annually in the last two years. The net margins of the company also improved as it took ₹4.47 from each ₹100 revenue in FY25.

The company significantly improved how efficiently it uses its money, with its Return on Capital Employed (RoCE) turning from a loss of (0.48)% in FY23 to a gain of 13.84% in FY25. It means the company makes ₹13.84 profit for every ₹100 invested in the business.

This company really stands out because it has a major cost advantage over typical eyewear shops. In FY25, the average cost it paid for frames and lenses was actually 35-40% lower than what the rest of the industry generally paid for similar quality products.

The company manages the whole eyewear process itself, right from designing the products and making them, all the way to branding and selling them. It runs a centralized supply chain with highly automated facilities, like the one in Bhiwadi, Rajasthan, which is 75% automated as of March 31, 2025.

The company is serious about protecting its unique brands and new ideas. It has a strong collection of intellectual property, including 241 registered trademarks and 32 trademark applications still pending in India. It also holds four registered copyrights and has four patent applications in the works in India, which helps safeguard its designs and innovations.

The company has a history of losses in recent years. It incurred ₹63.76 crore loss in FY23 and ₹10.15 crore in FY24, before reporting a profit of ₹297.34 crore in FY25.

The company has ongoing legal issues, particularly tax disputes. As of March 31, 2025, it had ₹19.22 crore in income tax litigation and ₹13.7 crore in GST and Customs issues, which could potentially impact its financial standing.

Its auditor's report for FY25 noted that an inventory management software lacked an "audit trail (edit log) facility" throughout the year, preventing comments on potential data tampering. This points to a specific internal control area needing attention.

The company is heavily dependent on raw materials, which made up ₹1,623 crore or 24.5% of total expenses in FY25. Most purchases are made on the spot market (where raw materials are bought immediately at current prices rather than through long-term contracts), so any delay, price hike, or supply issue can hurt operations.

The company relies heavily on China for both manufacturing and raw material imports, mainly through its 51% owned JV, Baofeng Framekart. In FY25, ₹1,062.43 crore (over 42%) of total purchases came directly from the PRC (People’s Republic of China).