| EBITDA Margin | 20.1%Record High |
|---|---|
| Revenue Q3 | ₹2,308 Cr37% YoY Growth |
| Market Cap | ₹88,327 CrLarge Cap |
| RSI | 49.53Neutral Zone |
Key highlights
- Revenue grew 37% year-on-year to ₹2,308 crore, marking the strongest quarter since listing.
- EBITDA margins expanded by 550 basis points to reach 20.1% for the period.
- Profit After Tax (PAT) more than tripled to ₹133 crore compared to the previous year.
- Global eye exams reached 6.3 million, with nearly 50% being first-time tests.
- India operations reported a robust 28% Same Store Sales Growth (SSG) and 40% revenue growth.
- The company successfully added 169 new stores in India and 26 in international markets during Q3.
Financial Performance and Margin Expansion
Lenskart reported high operating leverage during Q3 FY26, where revenue growth of 37% translated into a 90% increase in EBITDA. Operating revenue reached ₹2,308 crore, while EBITDA crossed the ₹462 crore mark. This performance was driven by significant improvements in cost efficiencies across marketing, which declined by 70 basis points, and employee costs, which benefited from AI-enabled productivity.
In India, the premium lens segment now accounts for 38% of total revenue, contributing to a 7% increase in Average Selling Price. The company transitioned into a compounding phase where incremental revenue adds disproportionately to the bottom line.
Strategic Shift Toward AI and Algorithms
Management emphasized a strategic transition from a traditional retail focus to an algorithm-driven enterprise. By utilizing GeoiQ for location intelligence, Lenskart now predicts store revenue based on mobility patterns and satellite imagery with high accuracy. Remote optometry has been scaled to 369 stores in India, allowing optometrists to conduct eye exams for customers located hundreds of kilometers away.
Furthermore, the newly launched face-scan feature in physical stores generates over 100,000 scans daily. These technological investments have enabled the company to expand into tier-2 and tier-3 cities while maintaining superior unit economics and customer experience scores.
International Growth and Market Dynamics
The international business segment, comprising 705 stores, reported an EBITDA margin of 6.1% pre-IndAS, showing significant improvement from 2% in the previous year. Revenue in international markets grew 32.7% YoY in current currency terms. Singapore and the UAE remain high-performing regions where supply chain integration has resulted in product margins exceeding the 75% mark.
The company is replicating its successful India playbook across Thailand and Saudi Arabia. Management noted that international product margins are structurally higher than those in India, providing a long runway for overall margin improvement as the global footprint expands.
Future Outlook and Product Innovation
- Planned soft launch of 'B by Lenskart' smart glasses in Q4 FY26, featuring photo, video, and AI-chat capabilities.
- Targeting a massive expansion in eye testing capacity to serve the estimated 500 million people needing vision correction in India.
- Continuation of manufacturing localization with the new Hyderabad facility to mitigate currency volatility in frame imports.
- Integration of kid-specific eye testing technology across all Indian stores to tap into the 8-plus age demographic.
- Focus on growing the Gold Membership base, which currently stands at over 8 million active members.
Leadership Commentary
We are transforming eyewear from atoms to algorithms. What we are able to do today with AI was not possible a year back. This is the engine behind our financial results this quarter.
“Revenue grew 37% year-on-year to 2,308 crores, our strongest quarter as a public company, and a record SSG of 28% in India.”
“India revenue increased 40% year-on-year in Q3, and on profitability, India pre-IndAS EBITDA margin reached 14.9%.”
| Share price | ₹508 |
|---|---|
| Market capitalisation | ₹88,327.01 Cr |
| Revenue (annual) | ₹8,814.04 Cr |
| Net profit (annual) | ₹493.61 Cr |
| Revenue (latest quarter) | ₹2,515.71 Cr+9.01% vs previous quarter |
| Net profit (latest quarter) | ₹200.28 Cr+52.86% vs previous quarter |
| P/E (TTM) | 178.94×Sector 52.54× |
| Promoter holding | 17.55%-0.02% QoQ |
| FII holding | 4.26%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Quarterly earnings transcript and investor presentation released by Lenskart Solutions Limited for the third quarter of FY26. Market figures from a third-party data provider.
