Peyush Bansal-led Lenskart Solutions reported a strong operational performance in Q4FY26, which led the stock price to surge over 6% in today’s trade.
Following the results, Jefferies raised the target price on Lenskart Solutions to Rs 600 from Rs 575, implying an upside of over 22% from the current market price. It has maintained a ‘Buy’ rating on the stock.
Jefferies upgrades Lenskart
This upgrade in the rating came after Lenskart delivered another standout quarter, with strong growth & smart margin gains across India & international markets. Also, the company’s management commentary remained positive, with excessive focus on compounding growth, which should further filter out into better profitability.
Moving forward, the company is heavily integrating Artificial Intelligence (AI), which is impacting all aspects of the business. From this, Lenskart’s control over the value chain benefits, with a series of initiatives underway that should further improve speed & agility.
This led the brokerage house to raise EBITDA by 7-11% for FY27-28.
On the outlook front, Jefferies said that store additions in FY27 will be similar to FY26, and sustaining growth continues to be the key priority – AI to be the driving force. Lastly, the Hyderabad facility will be commissioned in 18 months, with the bulk of capex to be incurred in FY27.
Lenskart Solutions Q4FY26
The company reported a fall of 9% year-on-year in its consolidated net profit for the fourth quarter of FY26, which came in at Rs 200 crore, compared with Rs 219 crore in the same quarter last year.
However, the company recorded a strong surge in revenue from operations, which jumped 46% YoY to Rs 2,516 crore.
For the whole of FY26, its revenue increased 32% YoY to Rs 9,002 crore. EBITDA rocketed 55.3% YoY to Rs 1,789 crore, while adjusted net profit surged 148% year-on-year to Rs 530 crore.
The domestic like-for-like revenue grew 44%, with over 23% volumes, and more than 18% rise in ASP, off a low base driven by a better mix (promotions in the base quarter). Gross Margin remained flat YoY despite some cost pressure (INR depreciation), which was offset by premiumisation & supply chain efficiencies.
Adjusted EBITDA margin was up 40 basis points QoQ to 15.3%.
Same store sales growth was best in class at 24%, with the same pincode sales even higher at more than 30%. Adjusted EBITDA was up 2.4x YoY.
Lenskart share price performance
The share price of Lenskart has risen over 5% in the last five trading sessions (including today’s gains). The stock price has moved down 7.5% in the past one month. However, the stock has surged 20% in the last six months. Lenskart Solutions’ stock price has given a return of more than 24% over the previous one year.
