Lenskart hits fresh high as Q3 PAT rises sharply; brokerages raise targets

Lenskart share price: Shares of Lenskart Solutions Ltd rallied 13 per cent in early trade on Thursday after the eyewear retailer reported a sharp rise in December quarter earnings, led by strong revenue growth and margin expansion.

The stock climbed to a fresh 52-week high of Rs 527.30 on the NSE. At 12 pm, it was trading at Rs 504.50, up from the previous close of Rs 467.60.

Profit surges on margin expansion

Add Zee Business as a Preferred Source

Lenskart posted a multifold rise in consolidated profit after tax (PAT) to Rs 132.7 crore in the December quarter, compared with Rs 1.8 crore in the year-ago period.

Revenue from operations rose 38 per cent year-on-year to Rs 2,308 crore, up from Rs 1,669 crore in the December 2024 quarter.

The company said revenue grew 37.4 per cent in Q3FY26, driven by volume expansion and new customer additions. India revenue grew 40.4 per cent year-on-year, while international business expanded 32.7 per cent.

Domestic profit before tax more than tripled to Rs 161 crore from Rs 48 crore a year ago. The international business reported a profit before tax of Rs 32.5 crore, compared with a loss of Rs 42.4 crore in the same quarter last year.

International business gains pace

Chief executive Peyush Bansal said the international segment achieved 6.1 per cent operational profit in the first nine months of the fiscal with 705 stores. In comparison, India had delivered 0.3 per cent profitability at a similar scale in FY23.

“International grew 32.7 per cent year-on-year, with EBITDA margins improving from 2 per cent to 6.1 per cent in nine months,” Bansal said in a letter to shareholders. He added that higher product margins and execution of its India playbook supported faster profitability overseas.

India delivered a record 28 per cent same-store sales growth during the quarter. Same-pincode sales growth stood at 36 per cent, an 800 basis points premium.

Lenskart said it conducted over 60 lakh eye tests during the quarter, with nearly half being first-time tests. Bansal noted that India’s eyewear market is currently valued at Rs 79,000 crore, while the need-based opportunity exceeds Rs 4 lakh crore.

However, the company also converted past loans granted to loss-making overseas subsidiaries — Lenskart Singapore and NESO Brands — into equity, citing their inability to service principal and interest obligations.

Brokerages turn constructive

Global brokerage Citi maintained a Neutral rating but raised its target price to Rs 520 from Rs 500. It cited strong revenue growth and margin improvement in both India and international markets. The brokerage said current valuations largely factor in the growth and margin trajectory.

Morgan Stanley upgraded the stock to Overweight from Equalweight and raised its target to Rs 561 from Rs 445. It said Q3 EBITDA beat estimates, driven by store additions and mix-led realisation gains in India. The brokerage expects faster margin expansion in the international business.

Jefferies maintained a Buy rating and increased its target price to Rs 575 from Rs 520. It described the quarter as exceptional, with strong growth and disciplined margin expansion across geographies.