Lenskart Solutions Ltd IPO

Our cost of raw materials consumed constitutes a significant portion of our expenses (amounting to Rs.4,673.39 million, or 25.45% and Rs.16,229.74 million, or 24.52%, of our total expenses in the three months ended June 30, 2025 and the Financial Year 2025, respectively) and delays, interruptions or reduction in the supply of raw materials to manufacture our prescription eyeglasses or fluctuations in the prices of our raw materials could adversely affect our business, results of operations, financial condition and cash flows.

We manufacture some of our frames in, and import some of our raw materials from, the People's Republic of China, including through import of frames through Baofeng Framekart Technology Limited, our Joint Venture. Any delay, interruption or reduction in the supply of such frames or other raw materials could adversely affect our business, financial condition, results of operations and cash flows.

An inability to maintain or improve our capacity utilization levels at our manufacturing facilities could have an adverse effect on our business, results of operations, financial condition and cash flows.

The Directorate of Enforcement, Gurugram under the Foreign Exchange Management Act, 1999, requested us for certain information and documents. While we have provided such requested documents, we cannot assure you that no regulatory or other actions will be initiated against our Company in the future, in relation to such orders, which could adversely affect our business, reputation, results of operations, financial condition and cash flows.

Our manufacturing facilities are subject to environmental, health, and safety laws and regulations that impose significant compliance costs and liabilities on our operations, and any non-compliance or violation could expose us to legal actions, penalties, and reputational harm.

Slowdowns, breakdowns or shutdowns at any of our manufacturing facilities could have an adverse effect on our business, results of operations, financial condition and cash flows.

Our reliance on manufacturing facilities located in the Gurugram industrial cluster across the states of Haryana and Rajasthan (which are our Bhiwadi and Gurugram facilities) exposes us to concentration risks across production and logistics, which could adversely affect our business, results of operations, financial condition and cash flows.

We have entered into a memorandum of understanding with the Government of Telangana to set up a greenfield manufacturing facility in Hyderabad, Telangana and may encounter delays in the planning, construction and commercialization of our proposed manufacturing facility, which could adversely affect our business, results of operations, financial condition and cash flows.

The location, size and performance of our retail store network component of our omnichannel retail network are critical to our success. We cannot assure you that our retail store network will expand and operate as expected or that the current locations of our retail stores will continue to be attractive as demographic patterns change.

Our historical performance may not be indicative of our future growth or financial results and if we fail to manage our growth or implement our growth strategies, our business, financial condition, results of operations and cash flows may be adversely affected.