Management

• Peyush Bansal (Chairman, Managing Director, Chief Executive Officer, Co-founder, and Promoter)
• Neha Bansal (Executive Director, Global Head of Merchandising, Co-founder, and Promoter)
• Amit Chaudhary (Executive Director, Global Head of Expansion, Co-founder, and Promoter)
• Ashish Kashyap (Independent Director)
• Bijou Kurien (Independent Director)
• Jayesh Tulsidas Merchant (Independent Director)
• Sayali Karanjkar (Independent Director)
• Anant Gupta (Nominee Director - Non-Executive)
• Preeti Gupta (Company Secretary and Chief Compliance Officer)
• Abhishek Gupta (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 7278.02 cr which comprises of fresh issue of Rs. 2,150 cr and offer for sale of Rs.5,128 cr. Company will use proceeds towards capital expenditure towards set-up of new CoCo stores in India (Rs.272.62 cr), expenditure for lease/rent/license agreements related payments for our CoCo stores operated by the company, in India (Rs.591.44 cr), investing in technology and cloud infrastructure (Rs.213.38), brand marketing and business promotion expenses for enhancing brand awareness (Rs.320.06), unidentified acquisitions and general corporate purposes.

Competitive Strengths

Integrated Direct-to-Consumer Model Lenskart’s integrated direct-to-consumer (D2C) model is a core competitive strength, enabling full control across design, manufacturing, and retail. By eliminating intermediaries typical of the traditional eyewear supply chain like importers, wholesalers, and distributors the company directly connects manufacturing to consumers. This structure enhances cost efficiency, ensures consistent quality, and significantly reduces lead times, allowing next-day delivery in key markets. Lenskart ranked as the world’s third-largest manufacturer of prescription eyeglasses in FY25 among major organized retailers. The transition toward a manufacturer-to-consumer model further strengthens scalability, operational agility, and margin resilience, positioning Lenskart as one of the most efficient and customer-centric eyewear platforms globally.

Strong Brand Equity and Diversified Portfolio of Sub-brands Lenskart’s brand strength lies in its aspirational positioning and wide portfolio catering to diverse customer segments and preferences. The company’s flagship Lenskart brand embodies empowerment and accessibility, while its owned sub-brands—such as Owndays and 22 curated labels—address varying lifestyle, fashion, and functional needs. This multi-brand approach ensures broader market coverage, from value seekers to premium buyers, driving both new customer acquisition and retention. In FY25, Lenskart recorded 29.5 million in-store visits and over 1.3 million Instagram followers, underscoring its mass appeal and strong engagement. Recognition as “India’s Most Trusted Eyewear Brand 2025” by TRA Research further reinforces its leadership and credibility within the organized eyewear market.

Seamless Omnichannel Network Enhancing Customer Experience Lenskart’s robust omnichannel retail network—integrating mobile apps, websites, and physical stores—forms a key strategic advantage. This model delivers a unified shopping experience, allowing customers to browse, purchase, exchange, or return products across any channel with consistent pricing and convenience. By linking digital engagement with in-store transactions, Lenskart ensures continuity through centralized access to prescriptions, purchase history, and personalized recommendations. In FY25, 44.8% of India revenue was driven by digitally engaged customers, underscoring the strength of this hybrid approach. With industry-leading revenue per square foot of ₹23,493 in FY25, the model significantly boosts conversion rates, customer loyalty, and operational efficiency, reinforcing Lenskart’s leadership in technology-enabled eyewear retail.

Innovative and Customer-Centric Product Design Capabilities Lenskart’s in-house design and merchandising strength forms a key differentiator, enabling the company to combine functionality, innovation, and style in its eyewear range. With a 109-member global design team, Lenskart launched 105 new collections in FY25, reflecting its agility in responding to evolving customer needs. Its proprietary designs—such as Turban Fit, Creatr for Kids, Twyst, Bitz, Switch, and SWAPS—address specific use cases and lifestyle preferences. This ability to engineer customized, fashion-forward eyewear enhances customer satisfaction and drives repeat purchases. The company’s two-year purchase frequency rose from 2.3 pairs (FY17 cohort) to 3.6 pairs (FY23), underscoring strong brand loyalty, effective design innovation, and deep consumer insight within a growing global eyewear market.

Key Risks & Concerns

Dependence on China for Manufacturing and Raw Materials Lenskart faces exposure to supply chain and geopolitical risks due to its reliance on manufacturing operations and raw material sourcing from the People’s Republic of China (PRC), including through its 51%-owned joint venture, Baofeng Framekart Technology Limited. Any disruption, delay, or regulatory restriction affecting imports from China—arising from trade tensions, tariffs, or diplomatic conflicts—could impact production continuity, increase costs, and adversely affect the company’s business operations, financial performance, and brand perception.

Risk of Underutilization of Manufacturing Capacity Lenskart’s profitability is closely tied to the efficient utilization of its manufacturing facilities across Bhiwadi, Gurugram, Singapore, and Dubai. Any decline in capacity utilization, driven by fluctuations in demand, market oversupply, or operational inefficiencies could adversely impact margins and cash flows. As the company continues expanding capacity, failure to align production with demand may result in underutilization, reduced operating leverage, and lower returns on capital, affecting overall financial performance.

Geographic Concentration Risk in Manufacturing Operations Lenskart’s manufacturing operations are heavily concentrated within the Gurugram industrial cluster, encompassing its Bhiwadi (Rajasthan) and Gurugram (Haryana) facilities, which together account for nearly all domestic production. This geographic concentration exposes the company to localized disruptions such as natural disasters, labour unrest, infrastructure failures, or regulatory changes. Any simultaneous outage across these facilities could halt production, delay deliveries, raise costs, and adversely impact Lenskart’s business continuity, profitability, and customer satisfaction.

Risk Related to Unidentified Inorganic Acquisitions Lenskart plans to allocate a portion of IPO proceeds toward unidentified inorganic acquisitions, the size and timing of which remain uncertain. If the allocated funds are insufficient, the company may need to raise additional capital through debt or equity, increasing financial risk or dilution. Moreover, such acquisitions may involve integration challenges, goodwill impairment, or undisclosed liabilities, potentially impacting cash flows, profitability, and overall financial stability.

Outlook and Valuation

Lenskart Solutions Limited is well-positioned to sustain its leadership in India’s organized eyewear market while scaling its international presence through an integrated, technology-driven business model. The company’s long-term growth strategy is anchored on expanding its geographical and demographic reach, deepening omnichannel penetration, and enhancing operational efficiency. With prescription eyewear penetration in India expected to rise from 53% in FY25 to 62% by FY30, Lenskart aims to capture this opportunity by expanding its store network across Metropolitan, Tier 1, and Tier 2+ cities. Its stores have demonstrated strong unit economics, with over 80% achieving payback within approximately ten months, underscoring the scalability and profitability of its retail model. Simultaneously, Lenskart plans to strengthen its presence in existing overseas markets such as Singapore, Japan, and the Middle East, while exploring selective entries into new markets through a mix of organic expansion and acquisitions.

The company’s operational excellence is supported by its vertically integrated manufacturing and supply chain capabilities. Having reduced import dependence on China from 54% in FY23 to 42% in FY25, Lenskart now manufactures nearly 70% of its prescription eyeglasses in India. Its automated Bhiwadi facility, among the top two globally, anchors its cost leadership and quality standards, while the upcoming Hyderabad plant is expected to multiply capacity and enhance redundancy across operations. Lenskart is also establishing smaller regional facilities in international markets to serve local demand more efficiently. Investments in advanced manufacturing processes, including modular lens fitting, automated packaging, and localized frame production, are expected to further reduce lead times and enhance margins. These initiatives collectively strengthen Lenskart’s supply resilience, scalability, and ability to deliver next-day service—a key differentiator in its customer value proposition.

Innovation and product diversification remain at the heart of Lenskart’s growth engine. The company plans to expand its brand and product portfolio across categories and price points, including new sub-brands, licensed collaborations, and smart eyewear technologies such as Bluetooth-enabled and camera-integrated glasses. Continued investment in lens innovation—covering myopia control, powered sun lenses, and sustainable eyewear—positions the company to capture emerging lifestyle and vision-care trends. By blending technology with design-led innovation, Lenskart aims to strengthen customer engagement, enhance product differentiation, and drive higher repeat purchases across global markets.

Looking ahead, technology will continue to underpin Lenskart’s growth narrative. The company’s AI-driven ecosystem spanning geo-analytics, predictive demand modelling, virtual try-ons, and remote optometry enables data-led decision-making across manufacturing, retail, and logistics. Future investments in AI-based eye testing, automated merchandising, and store productivity analytics are expected to elevate both operational efficiency and customer personalization. Coupled with initiatives to enhance brand resonance among Gen Z consumers and its focus on sustainability and loyalty programs, Lenskart is well placed to reinforce its position as a global leader in affordable, technology-enabled eyewear retail. However, execution risks continue to remain with overseas expansion, acquisitions and production facilities being concentrated in 2 locations which restrict Lenskart’s ability to improve customer service. Although Lenskart has become profitable at an operational level, the path to sustained long term profitability remains a long one. We believe at this point Lenskart Solutions does not offer any value to investors with valuation at 240 PE based on annualized Q1FY26 performance, leaving no space for investors. We recommend an AVOID rating for the issue.