Lenskart’s stock market debut was weak, with shares listing below the issue price despite a highly subscribed IPO. The company plans to use the funds to expand its physical store network.
Popular eyewear brand Lenskart opened its first trading day on a dull note. The company’s shares listed below the issue price, slipping nearly 3% at debut despite a hugely subscribed IPO. On Monday, Lenskart’s shares opened at Rs 390 on the BSE (down 2.99% from the issue price of Rs 402) and at Rs 395 on the NSE (down 1.74%). That’s a muted start for one of the most anticipated listings of the season.
IPO Was a Hit. But Grey Market Sentiment Cooled
The response to Lenskart’s IPO was impressive. It was subscribed over 28 times by investors across categories. But ahead of the listing, grey market buzz around the stock started fading.
The grey market premium (GMP) had dropped to just Rs 10, a sharp slide from earlier highs of around Rs 16–17. That suggests a listing price of roughly Rs 412, or just about 2.5% higher than the issue price, clearly showing that the excitement had cooled.
Where the IPO Money Will Go
The company plans to use the IPO funds to expand its footprint by opening more company-owned stores across India. Part of the proceeds will also go toward lease, rent, and license payments for these new outlets as Lenskart doubles down on physical presence alongside its online reach.
Business Numbers Tell a Strong Story
Brokerage firm Arihant Capital pointed out that Lenskart’s revenue has been on a strong upward curve, growing at a CAGR of 32.5%, from Rs 3,788 crore in FY23 to Rs 6,653 crore in FY25.
Its EBITDA jumped nearly four times to Rs 971 crore, and the company turned profitable in FY25, posting a PAT of Rs 297 crore after recording a loss of Rs 64 crore two years ago.
Operational cash flow has also shot up 13 times to Rs 1,231 crore, while return on capital (RoCE) has improved to 13.8% — a clear sign of stronger efficiency and profitability.
Analysts Are Split
Not everyone agrees on what comes next.
SMIFS Ltd has a bullish view, calling Lenskart a “high-risk, high-potential bet” in India’s growing eyewear market. The firm cited strong profitability recovery, tech-driven efficiency, and a huge untapped customer base, with nearly 65% of Indians needing vision correction still outside the organized eyewear segment.
On the other hand, Ambit Capital has given the stock a ‘Sell’ rating with a target price of Rs 337, warning of a 16% downside from the issue price. The firm believes Lenskart’s capital-heavy business model and modest 9% RoCE don’t justify its current valuation.
Swastika Investmart’s Shivani Nyati maintained a ‘Neutral’ stance, saying that while Lenskart’s fundamentals are strong, valuations remain stretched.
The Bigger Picture
According to SMIFS, India’s eyewear industry is expected to touch Rs 1.48 trillion by FY30, growing at a 13% CAGR. This growth will likely come from a rise in refractive errors, a surge in digital screen use, and more customers shifting to organized retail brands like Lenskart.
Siddharth Maurya, MD of Vibhavangal Anukulakara, believes the company’s omni-channel model and international expansion give it an edge. But he cautions that investors should keep an eye on unit economics and profitability as operating costs rise.
“India’s eyewear market has massive long-term potential,” Maurya said. “But only consistent profitability and disciplined capital use will decide if Lenskart can move from a high-growth startup to a sustainable listed giant.”