Lenskart Shares Rise 11% After Strong Q2 Results, Up 90% Since IPO

Lenskart Solutions, a leading eyewear retailer, saw its shares surge by more than 11 percent to a new all-time high following the release of its robust financial results for the second quarter of the fiscal year 2027 (Q2 FY27). The positive momentum in the stock was also supported by an overall favorable market environment on Thursday.

In early trading on the Bombay Stock Exchange (BSE), Lenskart's share price climbed 11.05 percent, reaching ₹767.40. By 9:52 AM, the stock was still up 5.57 percent at ₹729.50 while the benchmark Sensex was rising 2.09 percent to 78,920 points. The trading volume remained notably elevated, with around 10 million shares changing hands on the BSE and National Stock Exchange combined.

Since its public debut on November 10 of last year, Lenskart's stock has delivered impressive returns, trading approximately 90 percent above its initial public offering price of ₹402, effectively nearly doubling investors' capital in less than a year.

The company’s financial performance during Q2 FY27 highlighted significant growth. Lenskart’s net profit more than doubled to ₹232 crore compared to the same quarter last year. This profit increase was accompanied by a 32.5 percent rise in revenue, which reached ₹2,845 crore, up from ₹2,147 crore in Q2 FY26. Revenue in India expanded by 35.3 percent while the international segment grew by 29.5 percent, reflecting improved profitability across both markets.

On the earnings before interest, taxes, depreciation, and amortization (EBITDA) front, Lenskart reported a pre-Ind AS EBITDA increase of about 64 percent year-on-year, reaching ₹390 crore. The EBITDA margin expanded by approximately 265 basis points to 13.7 percent, driven by better product margins and gains from operating leverage.

The management team reaffirmed its commitment to investing in automated manufacturing capabilities and indicated plans to reinvest near-term margin improvements into expanding global reach and enhancing brand value. Their long-term goal is to achieve a 25 percent EBITDA margin.

Several brokerages have weighed in on Lenskart’s outlook following the earnings release. Domestic brokerage Motilal Oswal Financial Services (MOFSL) maintained a 'BUY' rating and updated its forecasts for FY27-29. The firm projects compound annual growth rates (CAGR) of 27 percent for revenue, 45 percent for pre-Ind AS EBITDA, and 57 percent for adjusted profit after tax during the period. These projections are supported by expectations of a 28 percent revenue CAGR in India and 25 percent internationally.

MOFSL anticipates margin expansion to around 19.3 percent in India and 13 percent internationally by FY29, citing Lenskart’s centralized automated manufacturing, extensive logistics, strong backward integration, widespread omnichannel presence, and technology-driven scalability as key advantages. The brokerage highlighted the company's strong market position in a segment that is typically difficult to scale, and increased its target price to ₹815.

International investment bank Jefferies also expressed optimism, emphasizing Lenskart’s continued growth and margin improvement despite foreign exchange headwinds. Jefferies identified seven strategic levers that could help the company reach its 25 percent EBITDA margin goal, although no timeline was specified as growth remains the priority. The bank forecasts an EBITDA CAGR exceeding 35 percent over FY26-29, supported by enhanced unit economics and quicker store payback periods. Jefferies set a target price of ₹780, implying a 16 percent upside from the stock’s recent close of ₹690.

Lenskart operates in a competitive eyewear market that has seen rising demand driven by increasing consumer awareness and the growing preference for online and omnichannel retail experiences. The company’s focus on technology, supply chain integration, and product innovation positions it well to capture further market share both domestically and internationally.

Disclaimer: The opinions and projections mentioned come from the respective brokerages and analysts and do not reflect the views of Business Standard. Investors should exercise caution and conduct their own research before making investment decisions.