Lenskart IPO is set to launch on the D-Street tomorrow, Friday, October 31. Investors will be eagerly observing how the initial public offering performs, especially given the significant discussion surrounding its valuations. There are considerable concerns about Lenskart’s valuation, particularly as it aims for a post-IPO valuation of approximately ₹70,000 crore.
Lenskart IPO price band has been set in the range of ₹382 to ₹402 per share. According to brokerage reports, at the upper band of ₹402, the Lenskart IPO is assessed at FY25 EV/Sales and EV/EBITDA ratios of 10.1x and 68.7x, respectively, considering the post-issue capital. The valuation for Lenskart appears to be stretched.
Lenskart was initially established as ‘Valyoo Technologies Private Limited’ by Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi. The company began its operations in India as an online venture in 2010 and launched its first physical store in New Delhi in 2013.
Considering its history and presence in the market, Mohit Gulati, CIO, ITI Growth Opportunities Fund said that the startup world often lives in a bit of delulu—private markets thrive on ‘price-to-dreams’ multiples rather than price-to-earnings. But the public markets aren’t buying dreams; they price discipline. Gulati believes Lenskart will likely discover that reality soon after listing.
“To be clear, I genuinely admire what the company has built—it’s a category leader with great execution—but admiration must meet arithmetic. At the right valuation, there should still be something left on the table for public investors,” said Gulati.
Peer comparison
As outlined in Lenskart’s red herring prospectus (RHP), the company primarily competes with key organized retailers of prescription eyewear in India, such as Eyegear Optics India Private Ltd, Gangar Opticians Private Ltd, GKB Opticals Ltd, Lawrence and Mayo (India) Private Ltd, Specsmakers Opticians Private Ltd, and Titan Company Ltd (Eyecare division).
Most other prominent organised optical retailers are not mentioned, with the exception of Titan Company Ltd, which encompasses the Titan Eyecare division.
Some brokerages have noted in their report that they compare this issue with leading global retailers in the prescription eyewear market, such as Essilor Luxottica SA, Fielmann AG, Warby Parker Inc., and National Vision Holdings, Inc. SBI Securities mentioned that the business models of international peers might differ from that of Lenskart Solutions Ltd, making it a challenge to make a direct comparison.
Nonetheless, the data indicates that Lenskart appears more expensive in comparison.
Profitability
Lenskart announced an increase in profits as it approached its IPO, reaching net profitability in FY25 following years of losses attributed to significant investments. In FY25, Lenskart posted a profit after tax (PAT) of ₹295.6 crore, while in Q1FY26, it achieved a PAT of ₹60.1 crore.
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, explained that Lenskart is reportedly seeking a valuation of around ₹70,000 crore from its upcoming IPO a level that appears priced for future profits, which remain uncertain given its current financial profile. Despite strong revenue growth, the company’s profit margins are still thin, constrained by high marketing and customer acquisition costs, as well as ongoing investments in offline expansion and logistics infrastructure.
Talking about the topline, Arun Kejriwal, the founder of Kejriwal Research and Investment Services explained that the company’s revenue stands at approximately 6,500 crores, and at the upper end of its price band, it would be valued at around 70,000 crores, translating to a revenue multiple close to 10.5 or thereabouts.
Lenskart’s valuation is not cheap by any means; it is, in fact, on the higher side. One can evaluate this based on several metrics, including the price-to-earnings (PE) ratio derived from earnings per share (EPS) and the revenue compared to market capitalisation.
Lenskart outlook: Wait and watch post list earnings performance
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, said that essentially, new investors would be paying upfront for the cost of future growth rather than current profitability. While bankers and promoters are positioning Lenskart as a tech-driven consumer platform rather than a traditional retailer like Titan, the valuation premium seems steep when viewed through conventional metrics.
The expensive premium could be justified only if Lenskart manages to sustain a 30–40% revenue CAGR over the next 3–4 years, expands successfully into international markets, and gradually improves EBITDA margins from current low single digits to the higher-teens range.
“Until then, the ₹70,000 crore valuation looks stretched relative to fundamentals. I would prefer to wait and watch post-listing performance and evaluate quarterly earnings visibility before making an investment decision. However, risk-tolerant investors may still consider betting on Lenskart’s new-age, tech-enabled business model and its long-term potential,” said Tapse.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.