Prime Highlights:
- Lenskart reported a profit after tax of ₹132.7 crore, up from ₹1.85 crore last year, with revenue rising 38.3% to ₹2,307.7 crore.
- Brokerage firm Jefferies raised its target price from ₹520 to ₹575 per share, signaling strong investor confidence and a potential upside of 21.6%.
Key Facts:
- Lenskart’s EBITDA nearly doubled to ₹464.1 crore from ₹212 crore, with margins expanding from 12.7% to 20.1%.
- India operations grew steadily, with revenue up 36.8% to ₹1,385.2 crore and EBIT increasing to ₹160.8 crore, highlighting strong domestic growth.
Background:
Shares of Lenskart Solutions Ltd. rose 11% on Thursday, February 12, after the company posted strong third-quarter results. Following this, brokerage firm Jefferies raised its target price from ₹520 to ₹575 per share, indicating a potential gain of 21.6% from the previous close.
The company’s profit after tax jumped to ₹132.7 crore from just ₹1.85 crore a year ago. Revenue increased 38.3% to ₹2,307.7 crore, while EBITDA almost doubled to ₹464.1 crore from ₹212 crore last year. Margins also expanded to 20.1% from 12.7% year-on-year.
The company’s India operations saw revenue increase 36.8% to ₹1,385.2 crore, with EBIT rising sharply to ₹160.8 crore from ₹48.1 crore, and margins expanding to 11.6% from 4.7%. Same-store sales in India grew 27.8%, while same pin-code sales rose 35.8% in the December quarter. Sales of eyewear units in India increased 29.7%, supported by a 7% increase in average selling price due to premiumisation.
On the international front, revenue climbed 39.9% to ₹935.9 crore, with EBIT turning positive at ₹32.5 crore compared to a loss of ₹42.4 crore in the previous year. The company’s international margin stood at 3.5%.
Jefferies described Lenskart’s quarter as “exceptional,” highlighting strong growth and smart margin expansion across both domestic and global markets. The brokerage also praised the management for prioritising long-term growth over short-term margin maximisation, viewing margins as an outcome rather than the primary objective. Adjusted EBITDA estimates for the company have been raised by 6–9%.
Out of the 11 analysts covering the stock, nine have a ‘buy’ rating, two are on ‘hold,’ and one has a ‘sell’ rating. At market open, Lenskart shares were trading at ₹518.5, showing strong investor confidence after the quarterly results.
With steady growth in India and overseas, Lenskart is strengthening its position in the eyewear market while improving performance and margins.
