Lenskart Solutions Ltd IPO

The company's cost of raw materials consumed constitutes a significant portion of its expenses (amounting to Rs.4,673.39 million, or 25.45% and Rs.16,229.74 million, or 24.52%, of the company's 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 the company's prescription eyeglasses or fluctuations in the prices of its raw materials could adversely affect the company's business, results of operations, financial condition and cash flows.

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

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

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

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

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

The company's 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 its business, results of operations, financial condition and cash flows.

The company has 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 its proposed manufacturing facility, which could adversely affect the company's business, results of operations, financial condition and cash flows.

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

The company's historical performance may not be indicative of its future growth or financial results and if the company fails to manage its growth or implement the company's growth strategies, the company's business, financial condition, results of operations and cash flows may be adversely affected.