Shares of Lenskart Solutions witnessed a significant uptick, climbing over 5% during intra-day trading on Monday, December 1. This rally was fueled by the company's impressive performance in the July-September quarter and the initiation of coverage by the global brokerage firm Jefferies, which issued a bullish 'Buy' rating.
Jefferies Bullish Stance and Financial Highlights
Jefferies assigned Lenskart a target price of ₹500 per share, indicating a potential upside of approximately 23% from current market levels. The brokerage emphasized Lenskart's unique position as India's largest tech-driven eyewear retailer, commanding only a 5% market share in a vast and underpenetrated market. This scenario, according to analysts, offers a substantial long-term growth runway.
The company's financial results for the second quarter provided solid ground for the optimism. Net profit surged 19.7% year-on-year to ₹102.2 crore, compared to ₹85.4 crore in the same period last year. On a sequential basis, profit saw an even sharper rise of 70.3% from ₹60 crore in Q1 FY26.
Revenue growth remained robust, increasing by 20.8% year-on-year to ₹2,096 crore from ₹1,735.6 crore in Q2 FY25. Compared to the preceding quarter, revenue was up 10.6%. The management attributed this consistent growth to heightened demand across both its online platform and extensive offline store network.
Operational Strengths and Growth Strategy
Jefferies' report extensively praised Lenskart's hybrid operating model, which seamlessly integrates online sales, physical retail stores, and in-house manufacturing. This structure is seen as a key competitive advantage that boosts margins, enhances customer experience, controls costs, and ensures faster delivery.
A critical insight from the brokerage is that over 85% of Lenskart's operating profit is still derived from the Indian market, solidifying it as the core growth engine. The increasing adoption of eyewear for both vision correction and fashion in urban and semi-urban areas aligns perfectly with the company's expansion strategy.
While Lenskart has expanded its footprint to over ten countries through acquisitions like Owndays and Stellio/Meller, Jefferies addressed potential investor skepticism. The brokerage sees a strategic rationale in the international foray, expecting margins to improve as the company integrates operations and achieves efficiency across these new markets.
Financial Projections and Market Performance
Looking ahead, Jefferies has outlined strong multi-year financial projections for Lenskart. The brokerage anticipates revenue to grow at a compound annual growth rate (CAGR) of around 24% between FY25 and FY28. More impressively, it forecasts the adjusted EBITDA to expand at a CAGR exceeding 50% during the same period, driven by operating leverage and attractive unit economics.
On the trading floor, the positive sentiment translated into direct action. The stock hit an intra-day high of ₹432.35, marking a 5.1% gain. Since its listing on November 10, 2025, at ₹395 per share, the stock has now moved over 7% above its issue price of ₹403.
The confluence of strong quarterly numbers, a disciplined yet aggressive expansion blueprint, and a vote of confidence from a major global institution appears to be significantly bolstering investor confidence in Lenskart's future growth trajectory.
Disclaimer: The views and recommendations expressed are those of the brokerage firm and not of this publication. Investors are advised to consult certified experts before making any investment decisions.
