Lenskart Share Price: IPO Euphoria Fades as Shares Slip on Listing Day

Muted Market Debut After Bumper Subscription

After a highly anticipated initial public offering (IPO), Lenskart’s stock market debut failed to live up to expectations. The Lenskart share price opened at ₹390 on the NSE, nearly 3% below its issue price of ₹402, despite strong subscription numbers during the IPO phase. Analysts suggest that valuation concerns and cautious investor sentiment led to the subdued performance on Dalal Street.

The eyewear giant, valued at nearly ₹70,000 crore, entered the market as one of India’s largest consumer-tech IPOs of the year. However, the grey market premium (GMP) — which once touched ₹108 — fell to zero before listing, signaling reduced appetite among investors ahead of its debut.

High Valuation Dampens Investor Enthusiasm

Experts have noted that Lenskart’s valuation multiples were significantly higher than established retail peers like Titan, Trent, and Nykaa. At the upper price band, the company traded at 10.1x FY25 EV/Sales and 68.7x EV/EBITDA, as estimated by SBI Securities.

Brokerage reports had warned that such lofty valuations might leave little room for listing gains. Ambit Capital even initiated coverage with a ‘Sell’ recommendation and a target price of ₹337, citing an expected downside due to limited free cash flow and heavy capital expenditure plans over FY25–FY28.

Profitability Under the Lens

In FY25, Lenskart reported a profit of ₹297 crore on revenue of ₹6,653 crore — a major turnaround from a loss of ₹64 crore two years earlier. However, analysts noted that ₹167 crore of that profit came from a one-time gain linked to the company’s acquisition of Owndays, trimming the adjusted net profit to about ₹130 crore, or a modest 1.9% margin.

During Q1 FY26, Lenskart recorded ₹55.6 crore profit on ₹1,940 crore revenue, improving margins slightly to 2.8%. Still, experts believe sustained profitability will depend on operational efficiency and margin expansion, not one-off accounting benefits.

Market Mood Turns Cautious

Despite the IPO being subscribed 28 times overall and 45 times by institutional investors, the market tone shifted just before the listing. With benchmark indices hovering near record highs, investors showed less enthusiasm for richly priced tech IPOs.

According to market analysts, this muted listing may reflect a correction in overhyped valuations across the digital retail sector. “Even great brands can disappoint when the market expects perfection,” one analyst observed.

Long-Term Prospects Still Bright

While the Lenskart share price stumbled initially, the company’s brand strength, omnichannel presence, and expansion across Asia remain key long-term positives. Lenskart continues to dominate India’s eyewear market and is among the top two players in Asia, with a growing global footprint.

The company’s vertically integrated business model — spanning manufacturing, retail, and online operations — gives it an edge in scaling efficiently once capital expenditure stabilizes. Industry watchers believe that consistent performance and stronger cash flows could help Lenskart shares regain investor confidence in the coming quarters.

Investor Takeaways

Analysts recommend that investors adopt a wait-and-watch approach with Lenskart. The next few quarters will be critical in proving whether the muted debut was merely a case of poor timing or a reflection of broader valuation fatigue in India’s tech-driven IPOs.

For retail investors, the focus should shift from initial listing gains to long-term earnings growth, profitability, and brand expansion.

Conclusion

The Lenskart IPO story offers valuable lessons for investors about balancing brand hype with fundamentals. While the Lenskart share price may have stumbled on day one, the company’s potential in the global eyewear space remains strong — provided it can convert scale into sustained profitability.For more updates on market trends, startups, and business insights, visit StartupNews.fyi.