Lenskart's Vision vs. Groww's Financials in India's Hottest IPO Battle
November 5, 2025
The Indian stock market is witnessing one of its most anticipated face-offs as two of the nation's most prominent startups, Lenskart and Groww, go public in the same week. It's a clash of titans: Lenskart, the omnichannel eyewear retailer that reshaped a traditional industry, versus Groww, the fintech behemoth that brought millions of new investors to the capital markets.
With Lenskart's IPO closing today and Groww's opening, investors are forced to make a difficult choice. Both companies boast massive brand recognition and impressive growth stories, but their public offerings present starkly different profiles in profitability, valuation, and founder conviction.
Lenskart vs. Groww
Lenskart: Betting on a High-Priced Vision
Lenskart's journey from an online-only portal to an omnichannel giant with over 2,800 stores is the stuff of startup legend. Its IPO, seeking a valuation of nearly ₹70,000 crore, is priced on this ambitious future.
The company recently turned profitable, posting a net profit of ₹297 crore for FY25. However, analysts have been quick to point out this includes a one-off gain and that the valuation is "stretched," to say the least. At an estimated price-to-earnings (P/E) ratio of over 285x, Lenskart is asking investors to pay a significant premium.
Expert Take:
Brokerage firms are cautiously optimistic, advising a long-term view.
SBI Securities has a "Subscribe for long term" rating, citing Lenskart's strong business model and leadership in a growing market. However, it cautions that "listing gains may be limited."
Nirmal Bang acknowledges the IPO "appears expensive" but justifies it when compared to retail peers like Trent, maintaining a "Subscribe (long-term)" stance.
The consensus is that investors are buying into a high-growth, capital-heavy retail expansion story, and the price already reflects much of that future growth.
Founder's Stance:
Co-founder and CEO Peyush Bansal, who is selling a portion of his shares in the Offer for Sale (OFS), has defended the company's position. Responding to valuation concerns, Bansal stated, "As an entrepreneur, our job is to create value for the customer. As far as the valuation is concerned, it is what the market decides... I don't expect anything abnormal.”
Groww: A Bet on Proven Profitability
In the other corner stands Groww, the asset-light fintech platform that has become India's largest stockbroker by active clients.Groww's IPO tells a different story: one of explosive, proven profitability.
With a net profit of ₹1,824 crore on revenue of ₹3,902 crore in FY25, Groww boasts a robust 44.9% profit margin and a 37.5% return on net worth. Its P/E ratio of around 41x is seen as far more reasonable, though not without its own risks.
Expert Take:
Analysts see Groww as more "fairly valued," though concerns remain about its high dependence (84%) on broking revenue, which is vulnerable to market volatility and regulatory changes from SEBI.
Arihant Capital recommends "Subscribe for listing gains," highlighting its scalable model, high retention, and low costs as a "long-term winner."
Anand Rathi views the IPO as "fully priced" and advises "Subscribe – Long Term," suggesting that while the price is fair, it may not be a bargain.
The primary risk remains regulatory. Any new curbs on futures and options (F&O) trading, a key revenue driver, could significantly impact earnings.
Founder's Stance:
In a powerful signal of confidence, Groww's co-founders, including CEO Lalit Keshre, reversed an earlier decision and are not selling a single share in the IPO.
Keshre's message to the market was clear: “We make so much money, we could keep it all. But that's not how you build a 100-year-old company. We want to be accountable to the public just like all global financial services companies are.” This move has been widely interpreted as a strong show of faith in the company's long-term trajectory.
The Investor's Dilemma
The choice for investors this week is a classic one:
1. Bet on Lenskart: An expensive, high-growth, omnichannel retail story where you pay today for future dominance. The risk is the sky-high valuation, while the reward is betting on the "next big thing" in Indian retail.
2. Bet on Groww: A reasonably priced, highly profitable, digital-first business. The risk is its dependence on volatile markets and regulatory whims, while the reward is owning a proven cash-generating machine that is synonymous with India's investment boom.
As the two IPOs battle for investor capital, the market's reception will serve as a telling referendum on what investors prize more in 2025: a high-priced vision for the future or a high-profit engine of the present.
Article Sources:
1. Groww: https://groww.in/blog/groww-ipo-to-open-for-subscription-tomorrow-on-04-november
9. https://www.marketbrew.in/daily-insights/lenskart-ipo
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