Lenskart Listing: Three Reasons Why Blockbuster IPO Fizzled Out With Weak Market Debut
Valuation woes, thin margins and weak sentiment drag down Lenskart listing.
After weeks of anticipation, one of the most talked-about IPOs of 2025, Lenskart Solutions Ltd., made its market debut with a whimper rather than a bang. The eyewear retailer listed at a discount on both exchanges, disappointing investors who had hoped for a strong start.
On the National Stock Exchange, Lenskart opened at Rs 395 per share, 1.74% below its issue price of Rs 402. On the BSE, it listed at Rs 390, a 3% discount. Soon after listing, the stock fell as much as 11%, erasing the excitement around its much-hyped public offering.
As of 11:30 a.m. the share was trading at Rs 409.70, 5% higher from its opening price on the BSE. On the NSE it was trading 3.67% higher at Rs 409.50.
Here are three reasons why Lenskart’s blockbuster IPO turned into a listing dud:
Valuation – Too Rich For Comfort
Lenskart had priced its IPO between Rs 382 and Rs 402 per share, valuing the company at nearly Rs 70,000 crore at the upper end. This implied a price-to-earnings ratio of about 285 times its fiscal year 2025 profit of Rs 297 crore, far above global and domestic peers.
Analysts flagged this steep valuation as excessive. According to Ambit Capital, Lenskart’s India business trades at an implied 55 times financial year 2028 estimated EV/Ebitda, 20–30% higher than consumer peers such as Trent and Nykaa’s beauty and personal care segment. The brokerage called these valuations “unwarranted” given the company’s modest profitability and heavy capital requirements.
The assumptions baked into the valuation also appeared overly optimistic, factoring in an 18% annual revenue growth over two decades and a 60% market share of EssilorLuxottica’s global retail base, a scenario that many see as unrealistic.
Profit – Thin Margins Behind The Growth Story
While Lenskart’s financial turnaround looked impressive on paper, much of the profit came from one-off gains. The company reported a profit of Rs 297 crore in the last financial year on revenues of Rs 6,653 crore, but Rs 167 crore of that was linked to a one-time gain from the Owndays acquisition. Adjusted for this, its core profit was closer to Rs 130 crore — translating to a modest 1.9% margin.
In the first quarter of this fiscal, Lenskart posted a profit of Rs 55.6 crore on Rs 1,940 crore in revenue, reflecting a 2.8% margin. Though margins improved slightly, analysts argue they remain thin relative to the company’s sky-high valuation.
Axis Securities noted that while revenue growth remains strong — up 22.6% year-on-year — profitability continues to lag. The brokerage added that Lenskart’s global expansion efforts could further stretch management bandwidth and increase execution risks.
Sentiment Reversal – From Euphoria To Caution
The timing of the listing did Lenskart no favours. Broader market sentiment has cooled in recent weeks, particularly for richly valued new-age companies. Investor appetite for high-growth but low-profit consumer-tech firms has weakened amid a broader risk-off environment.
Lenskart’s grey market premium, which once peaked at Rs 108, had collapsed to zero ahead of its listing — signalling fading enthusiasm. The disappointing debut underscores the shift in investor sentiment: from euphoria about India’s next consumer-tech success story to caution over sustainability and valuation.
