Wall Street major Morgan Stanley has raised its target price for Lenskart Solutions to ₹718 from ₹666, while maintaining its Overweight rating on the stock. According to reports from The Economic Times, the new target price implies an upside of over 6% from current market levels of ₹675. The brokerage's bull-case valuation has been increased to ₹1,154 (41% upside), up from ₹1,048 earlier, while the base case has risen to ₹641 from ₹600. The bear case has been raised to ₹304 from ₹290. The target increase driven entirely by the overseas business suggests the domestic model is performing to expectations while international optionality provides upside potential.
Lenskart Solutions delivered impressive Q1 FY27 results with net profit surging 270% YoY to ₹222 crore, compared to ₹60 crore in the previous year, according to exchange filing data. Revenue grew 43% to ₹2,714 crore compared to ₹1,894 crore in the year-ago period. EBITDA jumped 76% to ₹588 crore compared to ₹335 crore in the previous year, with EBITDA margin expanding to 21.7% from 17.7%. The company demonstrated strong demand for both affordable and premium eyewear segments, highlighting the scaling potential of its international business operations.
According to Morgan Stanley's updated estimates, the brokerage raised its FY27-FY30 revenue estimates by 0-2% and earnings estimates by 3-7%. India business EBITDA margin assumptions have been raised by 20-40 bps, while international revenue estimates have been increased by 1-5% for FY27-FY30. Morgan Stanley now builds in 24% revenue growth in FY27 and 19% in FY28-FY30 for international markets. International EBITDA margin assumptions have been increased by 20-40 bps over the four-year period, with India revenue estimates remaining unchanged, reflecting confidence in the domestic business model.
As reported by The Economic Times, Lenskart achieved significant milestones across its premium product segments. The company reached its highest-ever number of customers in 'Real Bharat' with ₹500 glasses sold profitably through Hustlr Club. At the premium end, glasses with high-end Rodenstock and Tokai lenses, including progressive lenses priced at ₹30,000, generated around ₹250 crore in annual sales. The company's premium Owndays lenses business generated more than ₹1,500 crore in annual sales, despite the business not having existed in India two years ago.
According to The Economic Times, Lenskart's international business demonstrated strong momentum with 38% growth and EBITDA margin before Ind AS 116 crossing 10%. The company believes the question is no longer whether the international business can work, but how far it can scale. Morgan Stanley has rolled its model forward by two months to October 2027, reflecting confidence in the company's international expansion strategy. The brokerage emphasized that Lenskart's strategic focus on full vertical integration in manufacturing, robust supply chain and advanced technology, combined with operational efficiency in store expansion and customer engagement, positions it as a superior business model capable of competing successfully both locally and globally.
