BofA Securities initiated coverage on Lenskart Solutions with a ‘Buy’ rating and a price objective of Rs 575, indicating an upside of 10%. The brokerage cited the company’s ability to address India’s large unmet vision correction needs through a vertically integrated and technology-enabled business model.
The brokerage said prescription eyewear remains significantly underpenetrated in India, with around half the population requiring vision correction but only about 35% of those people using prescription eyewear. BofA said Lenskart’s integrated operations across design, manufacturing, supply chain and omnichannel retail help address structural constraints that have historically limited category growth.
The brokerage expects revenue, EBITDA and earnings to grow at a compound annual rate of 23%, 39% and 46%, respectively, between FY26 and FY28.
BofA says Lenskart is addressing a large unmet need
A key pillar of BofA’s investment case is the scale of the opportunity in vision correction.
The brokerage said India remains significantly underpenetrated in prescription eyewear despite a large population suffering from refractive errors. According to BofA, around 777 million Indians may require vision correction, but only about 274 million currently use prescription eyeglasses. The brokerage said demand is still being created rather than merely replaced, with greater awareness and screening helping expand the addressable market.
BofA said in the report, “India can be described as the world’s blind capital, as the need for vision correction is massive and under-served.”
The brokerage added that low retail penetration, a shortage of optometrists and a fragmented supply chain have historically constrained category growth, creating a substantial opportunity for organized players capable of improving access and affordability.
Vertically integrated model creates structural advantages, according to BofA
BofA said Lenskart’s business model differentiates it from traditional optical retailers.
The brokerage noted that the company has centralized procurement, manufacturing, lens processing, assembly and fulfilment operations, allowing it to manufacture a majority of its prescription eyewear in-house. According to BofA, this model helps improve quality consistency, shorten delivery timelines and lower costs. The brokerage said frame and lens costs may be 35% to 40% below industry averages, supporting affordability and profitability.
BofA said the separation of experience and fulfilment is another important advantage, with stores functioning primarily as customer experience and order-booking centres while inventory and production remain centralized. The brokerage said this architecture enables rapid expansion while maintaining consistent unit economics and low capital intensity.
Technology is embedded across the business, BofA says
Technology is another key driver behind BofA’s positive view on the company.
The brokerage said Lenskart uses technology and artificial intelligence across store expansion, eye testing, supply chain management, customer experience and operations. BofA noted that the company employs a technology team of around 500 people with expertise in artificial intelligence, machine learning, engineering and computer vision.
One of the most important use cases is remote optometry.
BofA said Lenskart’s AI-enabled remote eye-testing platform helps address the shortage of optometrists and allows the company to serve smaller markets that may not support full-time professionals. According to the brokerage, stores equipped with remote optometry capabilities increased to 623 at the end of FY26 from 168 a year earlier. The company conducted around 20.7 million eye tests during FY26, up 54% year on year.
The brokerage also highlighted the GeoIQ platform, which uses thousands of variables to identify attractive store locations and optimise network expansion. BofA said the platform can identify roughly 5,000 potential store locations while helping minimise cannibalisation.
Store economics remain attractive despite rapid expansion
BofA said concerns around store saturation may be overstated.
The brokerage noted that Lenskart Solutions Ltd. operated more than 2,600 stores in India as of March 2026, but continues to see significant room for expansion given the large unmet need for vision correction and the relatively low density of optical stores across the country. According to BofA, the company benefits from attractive unit economics, with store payback periods of roughly 10 months.
The brokerage said productivity of new stores continues to improve. Management indicated that stores opened during the first nine months of FY26 generated average monthly revenue of Rs 1.27 million, representing a 15% compound annual growth rate improvement compared with the FY24 cohort. BofA also noted that stores in Tier-2 and smaller markets generated higher monthly revenue than those in metropolitan areas.
International business offers an additional growth avenue
BofA said international operations provide another important growth driver.
The brokerage noted that international markets contributed about 42% of revenue and 25% of EBITDA in FY26. Lenskart currently operates around 718 stores outside India across Japan, Southeast Asia and the Middle East. According to BofA, many of these markets exhibit characteristics similar to India, including high prevalence of refractive errors, fragmented retail structures and opportunities for value-focused offerings.
BofA said the company is extending its India playbook to overseas markets by leveraging its vertically integrated supply chain, technology platform and omnichannel capabilities. The brokerage highlighted Japan as Lenskart’s largest international market, where it already ranks among the top three players following the acquisition of Owndays.
The brokerage also noted that Singapore has emerged as one of the company’s strongest international businesses, with an estimated market share of around 25% and profitability metrics comparable to India.
BofA expects strong earnings growth and margin expansion
BofA forecasts healthy financial performance over the next several years.
The brokerage expects consolidated revenue to increase from Rs 90 billion in FY26 to Rs 133.5 billion in FY28. It also forecasts pre-IndAS 116 EBITDA margin to expand to 14.1% by FY28 from 11.3% in FY26, supported by operating leverage, greater scale and increasing profitability across international operations.
BofA said Lenskart’s strong balance sheet, store economics and free cash flow generation should support continued investments in stores, manufacturing capacity and technology. The brokerage added that international profitability appears to be progressing slightly faster than the India business at a comparable stage of development.
Conclusion
BofA’s positive view on Lenskart is built around the company’s ability to expand an underpenetrated eyewear category through an integrated operating model and technology-led execution. The brokerage said strong store economics, growing international operations, increasing use of artificial intelligence and a large unmet need for vision correction provide a long runway for growth.
Disclaimer: The investment ratings, target prices, and operational metrics discussed in this report are based on institutional equity research and do not constitute direct buy, sell, or hold recommendations for retail investors. Eyewear and medical retail investments are subject to evolving retail expansion risks, execution timelines across international geographies, technological implementation dependencies, and shifting consumer discretionary spending habits. Because individual financial goals, asset distribution targets, and risk capacities differ significantly, readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial consultant before committing fresh capital or making specific equity allocations in the retail or consumer tech sectors.
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