Lenskart and Wakefit's SEBI IPO Approval: A Strategic Entry into India's High-Growth Consumer Sectors

India's capital markets are abuzz with the impending IPOs of two consumer-sector darlings: Lenskart and Wakefit. With SEBI's nod for their public offerings, these companies are poised to capitalize on the explosive growth of e-commerce, eyewear, and home solutions markets. Let's dissect their IPO readiness, valuation potential, and the long-term catalysts that could make these debuts compelling for investors.

IPO Readiness: Profitability, Expansion, and Market Position

Lenskart, India's largest eyewear retailer, has emerged as a poster child for disciplined growth. In FY2025, it reported a net profit of ₹297.34 crore, a dramatic turnaround from a ₹10 crore loss in FY2024, according to Kotak Securities. Its revenue surged 22.5% to ₹6,652.5 crore, driven by a 27% rise in domestic sales and 17% international growth, per Marketing Maverick. Entrackr reports an EBITDA margin of 2.27% in FY2025, which signals improving operational efficiency. Meanwhile, Fidelity has marked Lenskart's valuation up to $6.1 billion, as reported by the Economic Times. The IPO aims to raise ₹2,150 crore to fund store expansion, tech upgrades, and cloud infrastructure-Kotak Securities says this will help solidify its 10% domestic market share.

Wakefit, the sleep-tech and home solutions firm, is a different story. While it posted a net loss of ₹8.8 crore in the first nine months of FY2025, Entrackr's 9M report flags the figure and notes auditor concerns. Its EBITDA turned positive at ₹76 crore (7.65% margin), according to Business Outreach. Revenue hit ₹994.3 crore in the same period, with plans to open 118 new stores, a point Kotak Securities highlights in its company analysis. The IPO's ₹468.2 crore raise will fuel manufacturing, marketing, and retail expansion-a critical step for a company targeting a $10 billion smart home market in India, per Mordor Intelligence.

Valuation Potential: Industry Benchmarks and Risks

Lenskart's valuation metrics remain opaque, but industry benchmarks offer clues. The global eyewear sector trades at an EV/EBITDA multiple of 27.46, per eVal, while the broader market averages 18.60 according to NYU Stern. Applying a 20x multiple to Lenskart's FY2025 EBITDA of ₹971 crore (Kotak Securities' figure) yields a valuation of ~₹19,420 crore (~$2.4 billion), far below some headline targets. This suggests investors are pricing in its $755 million revenue and aggressive international expansion, as reported by BusinessUpturn, not just current earnings.

Wakefit's valuation is trickier. With a 6.48% EBITDA margin and ₹65.9 crore EBITDA in FY2024 (Business Outreach), a 15x multiple would value it at ~₹988 crore. However, its planned 30% CAGR smart home market growth-outlined in a NextMSC report-and omnichannel strategy could justify a premium. The key risk? Sustaining profitability amid rising material costs and competition from established home brands.

Growth Catalysts: E-Commerce, D2C, and Demographics

Both companies are riding the D2C (direct-to-consumer) wave, a model that has reshaped India's retail landscape. Lenskart's 2,500+ stores and 1,500 international outlets, noted in the Economic Times piece, are complemented by a robust online platform, capturing 63.8% of the e-commerce eyewear market according to The Business Research Company. Meanwhile, Wakefit's 6,000 SKUs and 35-city retail footprint (see Wakefit investor relations) position it to tap into the $19.3 billion smart home market by 2030, a projection featured in the NextMSC report. For company-specific investor information, see Wakefit investor relations.

Demographics are another tailwind. India's eyewear market is growing at 11.93% CAGR, per Custom Market Insights, fueled by rising myopia rates and fashion-conscious millennials. For Wakefit, the home solutions sector's 30% CAGR (NextMSC) aligns with urbanization and a booming middle class prioritizing wellness and convenience.

Risks and Considerations

• Lenskart: Can it maintain profitability post-IPO? Its 2.27% EBITDA margin (Entrackr) is low for a high-growth company, and rising interest rates could pressure its debt-funded expansion.
• Wakefit: The ₹8.8 crore net loss in 9M FY2025 (Entrackr's 9M report) raises questions about its path to sustained profitability. Investors must watch its SG&A expenses and gross margins.
• Market Competition: Both face threats from global players (e.g., Warby Parker) and domestic rivals (e.g., Titan, Flipkart).

Conclusion: A High-Stakes Bet on India's Consumer Revolution

Lenskart and Wakefit's IPOs represent a bet on India's consumer-led growth story. Lenskart's profitability and valuation premium reflect its dominance in a $11.9 billion eyewear market (Custom Market Insights), while Wakefit's smart home ambitions align with a 30% CAGR sector (NextMSC). For investors, the key is balancing optimism with caution: Lenskart's valuation may be stretched, but its execution track record is strong. Wakefit's path to profitability is uncertain, but its market potential is vast.

As the IPO calendar fills with these names, the question isn't just if they'll succeed-it's how much they'll grow.