ABOUT THE COMPANY
LENSKART SOLUTIONS LIMITED is one of the biggest players in the India’s eyewear industry with about 2,067 stores in India and 656 stores outside the country it has become India’s largest organized retailer of prescription eyeglasses. The company got listed on the Indian stock market on 10th November 2025 at a price of Rs 403.10. The company has a low return on equity of about 5.57%, which is way less than its competitors. Market Capitalization of the company is Rs 72,250 Crores with a low promoter’s holdings of 17.6%. The management’s clear vision and execution process provides confidence that they can navigate the path to sustainable profitability.
The fresh issue of 2,150 Crores will be utilized for:
a) Capital expenditure towards set-up of new Coco stores in India
b) Investing in Technology & Cloud Infrastructure
c) Brand marketing and business promotion expenses for enhancing brand awareness
d) Unidentified Inorganic Acquisitions
e) General Corporate Purposes
Quick peer context:
| Company Name | Market Capitalization | Return On Capital Employed | Stock P/E Ratio |
| Lenskart Solutions Limited | ₹ 72249.91 Crores | 5.57% | 292.81 |
| Trent | ₹ 156048.53 Crores | 30.71 % | 96.21 |
| A B Lifestyle | ₹ 16151.66 Crores | 23.29 % | 148.60 |
Lenskart Solutions’ market valuation is moderate, showing investors’ confidence in the company for good growth in the future but the return on the capital employed is very low when compared to its competitors showing room for growth in profits.
Stock P/E ratio shows that the company is highly valued as of now as its competitor’s P/E is not near to it, investors should take this consideration while making their investing decision in the company.
Analysis of the Financial Statements
Revenue Growth Trend
The sales of the company have shown steady growth, but the same growth can be seen in the operating expenses too, making the operating profit less when compared to its sales growth percentage. The impact of growth in sales can be seen on the cash flow of the company, which has tripled in size from last year.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 905 CRORES | 1,503 CRORES | 3,788 CRORES | 5,428 CRORES | 6,653 CRORES |
Profitability & Margin Analysis
Operating Profit Margin of the company has doubled in the past 2 years. The company declared a Rs 297 crores profit for the FY 2024-25 after tax but if the other income of Rs 351 Crores does not be taken into consideration the company would have made a profit of only Rs 25.41 Crores. The nature of this other income is not classified but the management must reduce costs for making better profits in the future.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| -5% | -8% | 7% | 13% | 15% |
Balance Sheet Strength
Total Assets of the company have grown major portion of the total assets are made by the fixed assets of the company, particularly buildings and intangible assets. This shows that company is preparing for rapid expansion in the future. Company has less trade receivable due to its 7-day debtors payback period and the same is reflected by the positive cash flow of the company.
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 2,802 CRORES | 3,700 CRORES | 9,642 CRORES | 9,487 CRORES | 10,390 CRORES |
Debt Profile
Company’s borrowing stands at Rs 2,740 crores out of which Rs 2,227 cores are leased liability which is good sign for the rapid expansion of the company.
More stores = more leased real estate (retail outlets) → more lease commitments (long-term leases) → high lease liabilities on balance sheet
But this can backfire if the company is unable to maintain positive cash flows across the lease liability period as high lease liability means higher cash outflow if store sales slow, covering fixed lease costs could become challenging.
Reserves and surplus of the company have been growing consistently for the past few years which is good for the company in the downturns for absorbing losses and also for scaling new stores.
Reserves and Surplus:
| March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 2,363 CRORES | 2,918 CRORES | 5,441 CRORES | 5,467 CRORES | 5,777 CRORES |
Cash Flow Health
The Cash from Operating Activity has shown a threefold growth from last year making the operative cash flow positive. Company is heavily investing its funds for growth and to capture large market share. The cash conversion cycle of the company is 69 days which is good for such an industry, its helps company to maintain cash for working capital requirement.
Comparative Data with Key Competitors (Trent Limited, AB Lifestyle)
| Parameter | Lenskart | Trent Limited | AB Lifestyle |
| Sales Growth (5-Yr CAGR) | 30% | 16-18% | 12-14% |
| Operating Profit Margin | 15% | 16% | 16% |
| Debt-to-Equity | Low, around 0.2-0.3 | Moderate, approx. 0.3-0.5 | Moderate to high, approx. 0.6-0.8 |
Disclaimer: The article is for informational purposes only and not investment advice.