Lenskart shares fall 5% following Rs 1,985-crore block deal

Shares of Lenskart Solutions dropped more than 5% on Monday, 12 October, after large block transactions saw nearly three crore shares change hands in early trading.

The stock opened at Rs 650 on the National Stock Exchange against Friday's close of Rs 677.85, sliding to an intraday low of Rs 643.75 on the NSE and Rs 644 on the BSE. Exchange data showed the heavy turnover stemmed from block trades executed at Rs 647 per share, with total transaction estimates ranging between Rs 1,895 crore and Rs 1,985 crore.

What happened in the block deal

Global venture investor Alpha Wave Ventures LP moved to trim its exposure in the eyewear company. Market term sheets indicated the fund planned to offload up to a 1.6% stake valued at as much as Rs 1,691 crore.

The transaction featured a floor price of Rs 640 apiece, representing a 5.2% discount to Friday's market closing price. The base deal covered a 0.9% stake worth Rs 966 crore, alongside a green-shoe option to release a further 0.7% stake valued at Rs 725 crore. Following the sale, the seller enters a 30-day lock-in period.

The identities of the incoming buyers have not yet been disclosed by the exchanges. However, similar sell-downs by early-stage backers in recent months have been absorbed swiftly by domestic institutional capital. In August, when Alpha Wave divested a 1.7% stake for Rs 1,857 crore at Rs 630 per share, buyers included India's National Pension System, ICICI Prudential Mutual Fund, and WhiteOak Capital Mutual Fund.

At the close of the June quarter, company promoters retained a 17.53% holding, while public shareholders held 82.05%. Alpha Wave held 3.42% at the time before trimming its position across these rounds.

Strong operational momentum in Bharat

Monday's dip reflects short-term market absorption rather than operational weakness. Lenskart continues to show exceptional operational growth, anchored by India's expanding middle-class consumption and deep rural retail penetration.

In the first quarter of FY27, Lenskart Solutions posted a 182.3% year-on-year surge in net profit to Rs 228 crore. Revenue from operations climbed 33.6% to Rs 2,214 crore, driven by 30.7% growth across Indian stores and a 38% rise in international markets. Operating EBITDA rose 61.3% to Rs 589 crore, while consolidated product margins topped 70% for the first time.

A primary catalyst of this expansion has been the brand's rapid retail delivery across regional India. In a shareholder letter, the company noted it recorded its highest customer acquisition numbers across "Real Bharat" through its Hustlr Club model, offering complete prescription eyewear for Rs 500 while remaining profitable. At the higher end, premium lenses generated roughly Rs 250 crore in annual sales.

Outlook for upcoming quarters

Institutional analysts see Monday's discount as a temporary technical adjustment. Earlier this month, Morgan Stanley raised its target price on Lenskart to Rs 718, retaining an Overweight rating and citing solid domestic store additions and expanding profit margins.

Domestic brokerages are also forecasting strong second-quarter numbers. For the quarter ended September, Kotak Institutional Equities and Elara Securities expect year-on-year revenue growth of roughly 34%, supported by steady store rollouts and firm volume gains across both domestic and overseas markets.