The December quarter (Q3FY26) result marked the first real performance test for Lenskart Solutions Ltd since its high-profile initial public offering in November 2025.
The eyewear company impressed with a 240% year-on-year surge in consolidated net profit to around ₹131 crores. While that is mostly due to a small base of ₹39 crore in the year-ago period, other line-items also point to robust performance.
Revenue jumped 38% year-on-year to ₹2,308 crore, driven primarily by volume expansion and new customer addition, while EBITDA almost doubled to ₹462 crore on operating leverage.
In response, the stock soared by around 10% on Thursday, hitting a new 52-week high of ₹527.30, taking its total post-listing tally to 25%
The management expects premiumization to also flow through into margins with scale, as currently much of the benefit from high-margin brands like Owndays and Meller is passed back to consumers through campaigns like ‘new lens replacement’.
Store expansion
Volumes grew 30% over Q3FY25, receiving a leg up from 195 net new stores opened while sustaining healthy same-store-sales-growth in Q3FY26, thanks to Lenskart’s GeoIQ AI algorithm that aims to maximize catchment while limiting cannibalization.
The management also underlined the importance of eye testing services to penetrate markets in tier-2 and beyond, which tend to be fragmented and underserved. Lenskart conducted 63 lakh eye tests in Q3, 54% higher year-on-year. Its new stores in tier 2+ cities have been generating more revenue per month than its new metro stores.
But the view is not entirely clear. Competition is intense, as local firms continue to pose a threat. While Lenskart’s primarily company-owned, company-operated stores and vertically integrated manufacturing have ensured cost control and quality consistency, maintaining that in the face of competition will be key.
Lenskart’s international operations, which drive about 40% of its revenues, have grown at 33% year-on-year. But constant-currency growth was much mellower at 24%, and it continues to remain margin-dilutive. With 705 stores, scale and operating leverage are yet to kick in at its international stores, resulting in 6% pre-IndAS Ebitda margin against India’s 15%.
While the tech-enabled eyewear retailer has managed to secure the number one brand position in Singapore, replicating this in Japan, Thailand, and the Middle East may be an uphill battle, given the cultural and supply-chain complexities that persist across geographies.
Plus, the stock is also expensively priced at 127x FY27 P/E based on Bloomberg data, and can give investors pause. With an aging population and growing awareness, the total addressable market for organized companies in this space is massive, but earnings upgrades for Lenskart will hinge critically on sustaining the growth and margin-expansion which stole the show this quarter.
