Lenskart IPO: 10 things Jefferies said about Rs 2,200 crore offer

Looking to cash in on the IPO rush in Indian markets? Another marquee digital first company, Lenskart, is planning a public listing of about Rs 2200 crore. The omnichannel retailer is the largest organized eyewear player in India with a growth in low teens.

Jefferies in a note said Lenskart is a leader in the eyewear segment with strong financials and a large market to grow its business. Here are 10 things the global brokerage firm sees in the public offer, which investors keenly watch.

Profitability and financial strength

Lenskart turned profitable at the PAT level in FY25. The company also reported a net cash position of Rs 15 billion on its balance sheet.

Strong revenue growth

The company's revenue has grown at a compound annual growth rate (CAGR) of approximately 33% over the last three years, reaching Rs 6700 crore in FY25.

Market leadership in India and Asia

Lenskart is the largest organized eyewear retailer in India and is ranked among the top two in Asia.
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Omnichannel retail model

The company operates over 2,700 stores globally, with 2,067 located in India. Its business model integrates physical stores with its website and mobile app.

Vertical integration

Lenskart controls its entire value chain, from designing and manufacturing to delivery and retail, which helps it lower costs and maintain product quality.

Key product segment

Prescription eyeglasses are Lenskart's primary product, accounting for approximately 80% of its revenue in FY25.

International growth and margins

The international business, which contributes around 40% of the total revenue, enjoys better gross margins at approximately 74% compared to the consolidated margin of about 68%.

Large addressable market

The Indian eyewear market is valued at approximately Rs 788 billion in FY25 and is projected to grow at a CAGR of about 13% over the next five years. A key growth driver is the shift from an unorganized to an organized retail market.

IPO proceeds

The fresh capital raised from the IPO will be used for capital expenditure to establish new company-owned and company-operated (CoCo) stores and for branding and marketing initiatives.

Key investors and ownership

The company's key current shareholders include Softbank, ADIA, and Alpha Wave Ventures. The founders hold about 20% of the company.