Peyush Bansal Defends Lenskart’s IPO Amid Valuation Criticism

Scrutiny Over Valuation

Critics point to several factors: the underlying profit base of the company is still relatively modest (for example, some estimate adjusted profit at ~₹130 crore), which makes the margin for error small.

Further, the eyewear market, though growing, remains price-sensitive, and the jump from current performance to justified valuation requires strong execution across retail stores, manufacturing, margins, and expansion: any slip could impact returns.

On social media and forums, retail investors and commentators have grown vocal. One piece noted that Lenskart’s valuation had raised criticism of what some called “startup greed,” especially given the company’s classification as a tech-enabled retail player rather than a pure tech business.

Although Lenskart reported a net profit of ₹297 crore in FY25, a significant portion of that, around ₹167 crore, came from a non-cash fair-value gain related to its acquisition of Japanese eyewear chain Owndays.

Once this one-off item is stripped away, the company’s core operating margin stands closer to 2–3%, suggesting that profitability is still fragile.

Analysts at Livemint and Moneycontrol have cautioned that such adjustments reveal a business still in its early profitability phase.

The company’s impressive revenue growth is clear, but consistent profit from operations — without exceptional accounting items — remains to be proven.