Lenskart shares hit record high after Q1 profit jumps nearly four-fold; Motilal Oswal lifts target price

Indian eyewear retailer Lenskart Solutions saw its shares gain 7% in Thursday’s trade, August 13, to hit a fresh all-time high of ₹627 after the company sustained its growth momentum in the June quarter and reported a near four-fold jump in profit.

The company on Wednesday reported a net profit of ₹228 crore, compared with ₹61 crore in the same period last year, marking a 273% year-on-year increase. The strong growth in profitability was supported by sustained demand for its prescription eyewear.

Revenue from operations grew 43.3% YoY to ₹2,714.18 crore, compared with ₹1,894.46 crore in Q1 FY26. Revenue from the India business grew 30.7% YoY to ₹1,531 crore, while international revenue increased 38% to ₹1,203 crore.

In the domestic market, volumes grew around 23% YoY to 8.2 million, while implied average selling price (ASP) increased around 6% YoY to ₹1,856, driven by premiumization, also coming in line with the roughly 6% growth recorded in FY26.

In the international market, volumes grew 37% YoY to 2.3 million, compared with 28% growth in Q4, while implied ASP remained flat YoY at ₹5,278, with the lower constant-currency ASP largely reflecting a higher contribution from sunglasses.

Overall, the company added 132 net stores during Q1 FY27, comprising 116 stores in India and 16 internationally, taking its total store count to 3,459, up around 23% YoY.

The company’s board also approved an increase in its equity stake in its Chinese frame-manufacturing joint venture, Baofeng Framekart Technology Ltd, from 51% to 70%. The acquisition of the additional stake is valued at around RMB 7.5 million, or approximately ₹10.6 crore.

Lenskart also announced the incorporation of OWNDAYS Korea in South Korea and Wenzhou Framekart Trade Co., Ltd. in China as step-down subsidiaries. Furthermore, the Board approved a scheme of merger for its wholly-owned subsidiaries.

Motilal Oswal bullish on Lenskart

Following the results, domestic brokerage firm Motilal Oswal raised its product-margin assumptions by around 50 basis points for FY27 and FY28, led by the ramp-up in in-house frame manufacturing. This resulted in an estimated 4-5% upgrade to its FY27-28 pre-IndAS EBITDA estimates.

The brokerage reiterated its 'Buy' rating on Lenskart and raised its target price to ₹705.

Motilal Oswal expects Lenskart to deliver 25%, 41%, and 50% CAGR in revenue, pre-IndAS EBITDA, and adjusted PAT, respectively, over FY26-28, supported by around 25% revenue CAGR in both its India and international businesses. It expects pre-IndAS EBITDA margins to expand to 18.5% in India and 12.5% internationally by FY29.

The brokerage also highlighted Lenskart’s strong competitive advantages in a difficult-to-scale category, citing its centralized and highly automated manufacturing and logistics network, strong backward integration that provides a significant cost advantage, large omnichannel presence, use of technology to ease scaling constraints, and house-of-brands architecture spanning mass to premium eyewear.

These strengths, it said, position the company to achieve its goal of making quality eyewear accessible and affordable.

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