Omnichannel eyewear retailer Lenskart has made a strong statement with its financial performance for FY25, reporting a total revenue of approximately $755 million (₹6,653 crore). This robust growth, fueled by a powerful domestic market and strategic international expansion, has brought the company back into profitability and sets the stage for a highly anticipated initial public offering (IPO). The results highlight a maturing business model that has successfully balanced aggressive expansion with operational efficiency.
A Look at the Business Model: The Lenskart Blueprint
Lenskart’s success is rooted in its vertically integrated, omnichannel business model. The company controls the entire value chain, from manufacturing to retail, which allows it to maintain quality and competitive pricing. The core of its strategy is a seamless blend of online and offline experiences. Customers can use the popular Lenskart app with its AI-powered virtual try-on feature for convenience and then visit one of its over 2,700 global stores for an in-person eye check-up and product fitting. This dual approach has proven highly effective in a market where physical interaction for a high-involvement product like eyewear is still crucial.
The company’s expansion is a key driver. In FY25 alone, Lenskart added 282 new stores in India and 52 internationally. The Lenskart Gold membership program, which had a robust 6.8 million members by the end of FY25, has become a significant recurring revenue stream, locking in customer loyalty and repeat business. This strategy, coupled with celebrity endorsements and a focus on technology, has positioned Lenskart as a dominant force in a fragmented market.
Financial Performance: Profitability and Growth Trajectory
The FY25 financial results mark a significant turnaround for Lenskart. After reporting a loss of ₹10 crore in FY24, the company posted a net profit of ₹297 crore in FY25. This swing to profitability is a critical milestone, demonstrating the company’s ability to scale its operations while managing costs effectively.
The primary driver of this growth was a healthy increase in operating revenue, which jumped by 23% to ₹6,653 crore from ₹5,428 crore in the previous fiscal year. The company’s sales of goods, including prescription eyewear, sunglasses, and contact lenses, rose by a similar margin, while revenue from services like its Gold membership program grew by 27%.
A crucial aspect of Lenskart’s performance is its geographical revenue split. As per the data, the India business contributed ₹4,015 crore (approx. $455 million) in FY25, showing a strong 27% year-on-year growth. International markets, boosted by the acquisition of Owndays, brought in ₹2,638 crore (approx. $300 million), a 17% increase. This balanced growth portfolio highlights a de-risked business model, less reliant on a single market.
Here is a detailed breakdown of the key financial metrics for Lenskart in FY25:
| Metric | Q1FY26 | Q1FY25 | YoY Change |
| Operating Revenue (₹ Cr) | 6,653 | 5,428 | +22.6% |
| Revenue from India (₹ Cr) | 4,015 | 3,161 | +27% |
| Revenue from International (₹ Cr) | 2,638 | 2,265 | +17% |
| Net Profit (₹ Cr) | 297 | (10) | Swing to Profit |
| EBITDA (₹ Cr) | 1,115 | 763 | +46.1% |
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Note: The table is a simplified representation of key metrics based on the provided information for illustrative purposes.
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Market & Investor Reaction: The IPO Buzz
The news of Lenskart’s profitability and strong revenue growth has generated significant buzz, particularly as the company prepares to file for an IPO. The planned public offering, which is expected to raise between ₹7,500 crore and ₹8,000 crore, could be one of the largest consumer-tech listings of the year. Investors are keenly watching the company’s valuation, which is reportedly targeted at an ambitious $8-9 billion.
The public markets’ enthusiasm for profitable and scalable tech companies is a major tailwind for Lenskart. Its ability to show a clear path to profitability while continuing to expand aggressively is a strong selling point for potential investors, who have become more discerning about startup valuations. The company’s unique blend of physical and digital retail is seen as a key differentiator, setting it apart from purely e-commerce players.
Analyst View / Expert Commentary
According to analysts tracking the company, Lenskart’s vertical integration is a major competitive advantage. Its in-house manufacturing facilities not only help in controlling costs and quality but also allow for a faster go-to-market strategy. The acquisition of Owndays has been particularly lauded as a game-changer, giving Lenskart a strong foothold in the lucrative East Asian markets and access to a mature customer base and advanced manufacturing capabilities.
“Lenskart’s strategic acquisition of Owndays and its disciplined approach to capital allocation have been instrumental in its international success. The company has shown it can not only grow in India but also successfully export its business model to new geographies, which is a key differentiator for a tech-driven retailer,” said a market analyst from Motilal Oswal.
Furthermore, analysts believe the company’s focus on the mid-price segment of the eyewear market, a rapidly growing demographic in both India and other emerging markets, provides a substantial runway for future growth. The increasing awareness about eye health and the rising prevalence of digital eye strain are also structural tailwinds for the entire eyewear industry.
Risks & Strategic Headwinds
Despite the positive momentum, Lenskart is not without its risks. The company’s aggressive expansion strategy, while driving growth, also entails significant operational expenses. The IPO proceeds are earmarked for a range of uses, including opening new stores and marketing, which will be critical to sustaining this momentum. Any misstep in execution could pressure margins and investor confidence.
Furthermore, competition remains fierce. While Lenskart is the market leader in the organized Indian eyewear sector, it faces competition from established players like Titan Eye+ and Vision Express, as well as a large unorganized market. Internationally, the company must contend with a different set of competitors and consumer preferences, and its success in these markets is not guaranteed. The company’s heavy reliance on its manufacturing hub also poses a supply chain risk, as any disruption could impact operations.
What Should Investors Do?
Lenskart’s FY25 results paint a compelling picture of a company on a clear growth and profitability trajectory. The business model is sound, and the market opportunity is vast, both in India and globally. The upcoming IPO represents a chance for retail and institutional investors to get a piece of a market leader in a growing sector.
However, potential investors should carefully evaluate the risks, particularly the company’s ability to maintain its growth and margin expansion while executing its ambitious expansion plans. The IPO valuation will be a key factor to watch. A high valuation may leave little room for error, while a more reasonable pricing could offer a better entry point.
Investor Takeaway: Lenskart’s impressive FY25 performance, highlighted by a swing to profitability and strong revenue growth from both its domestic and international businesses, provides a solid foundation for its upcoming IPO. The company’s vertically integrated omnichannel model, coupled with strategic acquisitions like Owndays, positions it as a dominant player in the global eyewear market. The risks lie in execution and market-specific competition. For investors, Lenskart offers an opportunity to invest in a fast-growing, profitable consumer-tech company, but a careful analysis of the IPO valuation and the company’s ability to execute on its expansion plans will be critical. Given its market leadership and clear path to profitability, a “Buy” recommendation is justified, but investors should be prepared for potential volatility post-lis
