How Lenskart IPO tests investor appetite for consumer-tech plays

Lenskart IPO: The maiden public offer of eyewear retailer Lenskart Solutions is likely to be the most closely watched listing of the year, as it could serve as a key barometer for investor sentiment toward India’s consumer-tech sector. After a string of muted post-listing performance from digital-first names like Paytm, Mamaearth, and Zomato, the performance of Lenskart’s ₹7,278-crore IPO will serve as a crucial test of whether the market’s appetite for consumer-tech plays has evolved.

 

The issue opened for subscription on Friday, October 31, 2025, and will close on Tuesday, November 4, 2025. It comprises a fresh issue of 53.5 million shares and an offer for sale (OFS) of 127.6 million shares. As of 2:00 PM on November 3, 2025, the issue was booked over 1.7 times, receiving bids for 172.35 million equity shares compared to 99.76 shares on offer. The company has set the price band in the range of ₹382 to ₹402 per share. 

Lenskart financial snapshot

From a business standpoint, Lenskart reported revenue of ₹6,652.5 crore in FY25, up 22.6 per cent year-on-year (Y-o-Y), while net profit surged to ₹297.3 crore from ₹10.1 crore in FY24. Operating margins improved to 14.6 per cent. In the June quarter of FY26 (Q1FY26), the company posted a 24.6 per cent Y-o-Y increase in revenue and a swing to profit of ₹61.17 crore from a loss of 10.9 crore in the same quarter last year.

Investor sentiment under the lens

Lenskart IPO has invited comparisons with earlier new-age tech listings such as Zomato, Paytm, and Mamaearth. Each of these companies came to market amid heavy investor buzz, but their journeys have diverged sharply since. Nykaa’s ₹5,349.72 crore IPO in November 2021 was subscribed 81.8 times, though its stock later corrected more than 50 per cent from listing highs (₹429) to hit a record low of ₹114.3). At present, the stock is down around 25 per cent from its all-time high.

 

Zomato's ₹9,375-crore issue, meanwhile, drew 38 times bids. The company struggled, financially, in its first year before turning profitable in FY25. However, the stock has surged over 170 per cent from its listing price of ₹116 as of October 31, 2025. 

 

In November 2021, Vijay Shekhar Sharma-led Paytm launched India's largest-ever IPO at the time, aiming to raise ₹18,300 crore with a valuation of around ₹1.5 trillion. However, the debut was disappointing: the stock opened at ₹1,955, below its issue price of ₹2,150, and closed the first day 27 per cent lower at ₹1,564. Since then, it has struggled, down over 33 per cent from its listing price as of October 31, 2025.

 

Similarly, Mamaearth’s parent company Honasa Consumer's ₹1,701 crore IPO saw 7.6 times subscription and now trades sharply below its issue price. On November 7, 2023, the stock made a flat debut at ₹330 on the NSE against the issue price of ₹324 per share. Currently, the stock is down around 14 per cent from its listing price.  

Brokerages remain cautiously optimistic

Against this backdrop, analysts say Lenskart’s strong financials and profitability track record may help it avoid the volatility that dogged its predecessors. Brokerages have offered a cautiously optimistic view on the Lenskart IPO.   Kranthi Bathini, equity strategist at WealthMills Securities, said Lenskart is a profitable company, unlike earlier consumer-tech listings such as Nykaa or Zomato, which were loss-making at debut. This profitability, combined with a robust business model and strong anchor investor participation, could help Lenskart chart a different post-listing path. Ultimately, market performance will hinge on how earnings growth unfolds, which remains the key trigger for the stock, he added. 

 

SBI Securities noted that while Lenskart’s valuation at 10.1x FY25 EV/Sales and 68.7x EV/Ebitda appears stretched, its robust business model, expanding market, and improving profitability justify a 'Subscribe - Long term' rating. The brokerage notes the company has demonstrated strong growth in both operational and financial metrics and is expanding in India’s underpenetrated eyewear market. SBI expects muted listing gains but sees robust long-term prospects as the company scales its omni-channel model and leverages technology-driven supply chains to improve profitability.

 

Arihant Capital highlighted its 32.5 per cent revenue CAGR and rapid turnaround to profitability, also recommending a 'Subscribe for long term'. With profitability now achieved, Arihant projects strong cash flow generation, rapid store payback metrics, and rising return ratios. The brokerage also notes the company’s potential to deepen penetration in Tier 2/3 cities and expand overseas, particularly in Southeast Asia, Japan, and the Middle East. At the upper band, the IPO is priced at a P/E of 238x, which Arihant believes is justified given Lenskart’s growth trajectory.

 

However, despite valuation concerns, analysts note that Lenskart is well-positioned to capitalise on India’s under-penetrated eyewear market and growing preference for organised retail. Ultimately, the market’s response to Lenskart’s IPO will be closely watched as a litmus test for investor confidence in consumer-tech stories.