Lenskart Q1 profit surges 182% on record margins, store growth
Lenskart's first-quarter profit more than tripled as the Indian eyecare retailer achieved unprecedented product margins and proved its international expansion is driving profitability.
Lenskart Solutions reported net profit of Rs 228 crore for the first quarter of fiscal 2027, an increase of 182.3% year-on-year. Shares jumped as much as 7% to Rs 627 on the BSE following the results.
Revenue rose 33.6% to Rs 2,214 crore, but the primary signal for investors was margin expansion. Consolidated product margins crossed the 70% threshold for the first time, reaching 70.3%, while EBITDA margins widened to 21.7% from 18% a year earlier. This leverage indicates that the company's rapid scaling is translating efficiently to the bottom line.
The international business is now a material profit driver rather than just a growth experiment. Overseas operations generated an EBITDA margin of 21.9% and accounted for 35% of consolidated adjusted EBITDA. International revenue grew 38%, driven entirely by volume, even as the average selling price declined due to a higher mix of sunglasses. The Meller brand, which management noted is on track to double to $70 million in sales, is anchoring this push with stores in Amsterdam, Barcelona and Paris.
Store expansion and technology integration
Management views supply constraints, rather than demand, as the primary limit on growth. To capture this demand, Lenskart added 132 net stores in the quarter, bringing its global footprint to 3,459 locations. The company sees a path to more than 10,000 stores in India alone, with tier 2 cities currently generating around Rs 17 lakh in monthly sales per store.
Technology is being deployed to sustain this physical scale. Lenskart conducted 7 million eye tests in the quarter, a 40% jump, aided by the pilot rollout of AI-enabled self-testing. The company is also targeting both ends of the pricing spectrum, generating Rs 250 crore annually from Rs 30,000 progressive lenses while pushing a Rs 500 mass-market proposition.
Jefferies highlighted the early traction of Lenskart's smart glasses, with over 80,000 sign-ups, positioning them as a potential rival to Ray-Ban Meta. The brokerage set a target price of Rs 680, implying a 16% upside from Thursday's high.
