Business1 min read

Lenskart investors give thumbs up to growth over margin strategy

By · Published by Everything Blog

In short

The company reported a 32.5% rise in consolidated revenue to ₹2,845 crore for the September quarter, while pre-Ind AS Ebitda surged 65% to ₹392 crore. Top-line expansion was reinforced by a 20.8% same-store sales growth in India and a 23% constant-currency revenue gain across overseas markets. To sustain this momentum, the retailer plans to scale its domestic store presence from 2,800 outlets to 10,000 stores over the coming years.

Key points

  • Vertical integration via the upcoming Hyderabad facility aims to insulate profit margins…: Vertical integration via the upcoming Hyderabad facility aims to insulate profit margins from currency fluctuations and import costs.
  • Aggressive expansion toward 10,000 domestic stores reflects a clear preference for captur…: Aggressive expansion toward 10,000 domestic stores reflects a clear preference for capturing market share over near-term profitability.
  • The stock trades at a lower valuation multiple than peer retail competitors despite gaini…: The stock trades at a lower valuation multiple than peer retail competitors despite gaining 61% year-to-date in 2026.

Sources checked by our analysis pipeline: 1

Lenskart Solutions' September-quarter (Q2FY27) performance would have been even stronger but for adverse currency movements. Investors, however, appear to be looking past these headwinds.

The stock hit an all-time high of ₹762.75 on Thursday, rising 6%. Consolidated revenue grew 32.5% year-on-year to ₹2,845 crore, while gross margin expanded 82 basis points to 69.98%. This was despite the Indian rupee depreciating about 16% year-on-year against the Chinese yuan, to an average of ₹14.2.

Currency remains a downside risk until Lenskart localizes more of its manufacturing, as a weaker rupee raises the cost of raw material imports from China. In Q2FY27, higher import costs significantly eroded the profitability gains from two key drivers: a sharp increase in in-house manufacturing of frames and lenses, which grew 71.7% and 52.2% year-on-year, respectively; and a 6.9% increase in average selling price in the India business.

Store productivity improved, with same-store sales growth (SSSG) in India at 20.8% year-on-year. International revenue grew 23% in constant currency, also largely driven by SSSG. Higher store productivity translated into operating leverage, helping Ebitda margin expand 274 basis points year-on-year…

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