According to Live Mint, Lenskart Solutions delivered exceptional first-quarter results with consolidated net profit surging 273% year-on-year to ₹228 crore compared to ₹61 crore in the corresponding quarter last year. Revenue grew 43.3% year-on-year to ₹2,714.18 crore compared with ₹1,894.46 crore in Q1 FY26, with the revenue mix skewed towards domestic business at 57%. EBITDA jumped 76% to ₹588 crore compared to ₹335 crore in the year prior, while EBITDA margin expanded to 21.7% from 17.7% in Q1 FY26. The company's PAT margin expanded 443 basis points year-on-year to 8.4% from 4%, demonstrating significant operational efficiency improvements. The company's consolidated product margin crossed 70% for the first time, rising to 70.3% in Q1 FY27 from 68.7% a year ago, despite rupee depreciation against the Chinese yuan. India's product margin increased to 64.2% from 63.4%, while international product margin rose to 77.1% from 75.9% in the year-ago period.
The international segment delivered a sharp 610 basis points expansion in EBITDA margin (pre-Ind AS) to 10.6% in Q1 FY27, with almost the entire constant-currency revenue growth of 29% year-on-year coming from same-store sales growth. Eyewear unit volumes grew 37.6% while international growth was led by broad-based expansion across Japan, Southeast Asia, and West Asia. As per Jefferies India, the margin improvement in international business should put a key investor concern to rest, with the company planning to replicate its India playbook in international markets and prioritizing accelerating growth in Thailand. The company added 132 net new stores during the quarter, taking total active stores to 3,459, while eyewear units sold increased 25.7% YoY to 105.3 lakh. 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.
Following the strong Q1 FY27 financial results, Lenskart shares rose as much as 7% to ₹627, hitting a new all-time high on Thursday, trading at ₹609.65 after opening 3.16% higher. As per NDTV Profit, the stock has risen 60,020% in the last 12 months and 33.27% year-to-date, with total traded volume standing at 4.57 times its 30-day average. The relative strength index was at 58.90. Out of 21 analysts tracking the company, 17 maintain a 'buy' rating, three maintain a 'hold', and one maintain a 'sell' rating, according to Bloomberg data. The average 12-month consensus price target of ₹655.52 implies an upside of 11.8%. The company has received target price hikes from Jefferies, Macquarie and Citi, while Morgan Stanley has retained its 'overweight' rating. Motilal Oswal has raised its target price to ₹705 following the results, reiterating its 'Buy' rating.
According to The Economic Times, Lenskart Solutions achieved strong operational metrics with consolidated EBITDA (pre-Ind AS) almost doubling year-on-year to ₹361 crore in Q1 FY27. The company was able to convert 82% of its EBITDA into operating cash flow (OCF) of ₹297 crore, which exceeded capital expenditure of around ₹207 crore. Capex included ₹75 crore for stores and ₹132 crore for the Hyderabad-led step-up in plant capacity. Net cash flow before mergers and acquisitions stood at ₹116 crore. Return on capital employed (ROCE) improved to 23.2% in Q1 FY27 from 14.6% in FY26, driven by EBIT growth and capital allocation. Total expenditure increased 35.35% YoY to ₹2,430.33 crore, with raw material consumption rising 23.20% to ₹631.18 crore and employee expenses up 28.73% to ₹599.36 crore.
As reported by CNBC TV18, Lenskart's India business delivered exceptional performance with revenue growing 30.7% year-on-year to ₹1,531 crore in Q1 FY27, while same-store sales growth (SSSG) reached 18.3% across Metro, Tier 1, and Tier 2+ markets, up from 16% in Q1 FY26. The company's same pincode sales growth (SPSG) of 24.3% ran approximately 6 percentage points above SSSG, confirming that store densification is generating incremental demand. Eyewear units grew 22.8% year-on-year to 82 lakh, led by the eye-test funnel at the top. App downloads crossed 12 crore from 10 crore a year ago, with digitally influenced sales rising to about 55% of India revenue in Q1 FY27, up from approximately 41% a year ago. Quarterly transacting customer accounts grew 18.5% YoY to 44 lakh, with active gold members reaching 93.5 lakh. The company conducted 71.2 lakh eye tests in Q1 FY27, up 39.8% YoY, while subscription fees increased 57.4% YoY to ₹66 crore and India average selling price increased 6.4% YoY to ₹1,856. Domestic volumes grew around 23% YoY to 8.2 million, with implied average selling price (ASP) increasing around 6% YoY to ₹1,856, driven by premiumization.
According to Live Mint, the company's board approved an increase in its equity stake in its Chinese frame-manufacturing joint venture, Baofeng Framekart Technology Ltd, from 51% to 70%, with the acquisition of the additional stake valued at around RMB 7.5 million, or approximately ₹10.6 crore. The company also announced the incorporation of OWNDAYS Korea in South Korea and Wenzhou Framekart Trade Co., Ltd. in China as step-down subsidiaries, while the Board approved a scheme of merger for its wholly-owned subsidiaries. Motilal Oswal has raised its product-margin assumptions by around 50 basis points for FY27 and FY28, led by the ramp-up in in-house frame manufacturing, resulting in an estimated 4-5% upgrade to its FY27-28 pre-IndAS EBITDA estimates. The brokerage 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. Pre-IndAS EBITDA margins are expected to expand to 18.5% in India and 12.5% internationally by FY29.
