Lenskart Stock Hits Record High on Strong Growth Strategy

Financial Results

Lenskart Solutions shares reached a record high of 762.75 rupees on Thursday, climbing six percent as investors welcomed the company's focus on expansion over short-term earnings. Consolidated revenue jumped 32.5 percent from a year earlier to reach 2,845 crore rupees during the September quarter. Gross profit margins also improved, rising 82 basis points to touch 69.98 percent.

Operational Challenges and Growth

The latest quarterly results could have been even better if not for unfavorable currency shifts. The Indian currency weakened roughly 16 percent against the Chinese yuan over the same period, driving up the cost of raw materials imported from China. Despite this currency pressure, the company benefited from a sharp rise in in-house frame and lens manufacturing, which grew 71.7 percent and 52.2 percent respectively. Average selling prices in the domestic market also went up by 6.9 percent.

Expansion Plans

Store productivity showed strong improvement, with same-store sales growth in India reaching 20.8 percent. International revenue grew 23 percent based on constant currency, also driven largely by existing store performance. Operating leverage helped push pre-Ind AS Ebitda margins up by 274 basis points to 13.8 percent, with total pre-Ind AS Ebitda climbing 65 percent to 392 crore rupees. Management aims for a long-term Ebitda margin of 25 percent, relying on full value-chain integration from manufacturing to final distribution. A large manufacturing facility in Hyderabad, designed to produce 50 million eyewear units per year, is expected to start operations in about 12 months. Lenskart currently operates about 2,800 stores in India and added 143 new outlets during the quarter, with a long-term goal of reaching 10,000 stores. Internationally, the firm ended the quarter with 756 stores and holds a 25 percent volume share in Singapore, while maintaining a low single-digit share in other overseas markets.

Valuation

The stock has delivered a 61 percent return so far in 2026, drawing close attention from market participants regarding its valuation. Based on estimates for financial year 2029, the enterprise value-to-Ebitda multiple stands at 30 times. This is lower than comparable multiples of 43 times for Nykaa and 33 times for Eternal.

Context

Currency volatility is a common challenge for Indian retail brands that depend heavily on imported raw materials or manufacturing components from overseas markets like China. Companies often try to counter these external pressures by ramping up local production facilities to protect their profit margins over the long term. Stock valuations for growing consumer brands are frequently assessed by comparing forward-looking multiples against peer companies in the retail and e-commerce sectors.