Summary:
Lenskart Solutions shares rose 7% after Q1 FY27 results showed a sharp rise in profit, revenue and EBITDA margins. Consolidated net profit increased 273% YoY to ₹228.4 crore, while EBITDA rose 61.3% to ₹589 crore. India and international operations both recorded strong revenue growth, with the consolidated product margin crossing 70%. The company is also expanding its international presence through investments in Singapore, South Korea and China.
Shares of Lenskart Solutions jumped up to 7% to ₹627 on the BSE on Thursday after the company reported impressive results in Q1 FY27 with the help of massive profits and margins, revenue and margins expansion.
The consolidated net profit for the company rose 273% YoY to ₹228.4 crore from ₹61.2 crore in Q1 FY26. The consolidated net profit for the company also increased 12% QoQ from ₹203.6 crore. One of the other measures reported by the company showed 182.3% YoY increase in PAT to ₹228 crore. The revenue from operations of the company was at ₹2,214 crore, 33.6% up YoY, whereas operating revenue in the results was ₹2,714.2 crore, 43% up YoY and 8% QoQ. Total income, including other income of ₹68.5 crore, was at ₹2,782.7 crore.
The EBITDA of the company rose 61.3% YoY to ₹589 crore with the help of improved EBITDA margin to 21.7% from 18.0%. The India EBITDA margin was 21.4%, while the International operations had an EBITDA margin of 21.9%. The consolidated product margin crossed 70%
Why Did Lenskart Shares Surge?
The sudden spike in Lenskart shares was due to good earnings, with particular focus on the profits and margin performance. There was strong revenue growth, with the revenue in India growing by 30.7% YoY and international revenue by 38%. The international operation has performed better than expected, while the Indian operation continues to grow with the help of more stores, customer addition, higher conversion and volume growth.
According to the company, 70,000 eye tests are being performed per day, suggesting healthy demand with supply being a constraint in India. Moreover, Lenskart has introduced a full-fledged ₹500 offering on the lower end, while premiumization is becoming a new driver for the company.
Expansion and Strategic Initiatives
A ₹10.6 crore investment was made by the Lenskart board in Singapore-based Baofeng Framekart Technology Ltd to enhance its shareholding in the eyewear frame manufacturing joint venture to 70%.
Lenskart will be investing ₹20 crore to extend OWNDAYS to South Korea and ₹1.4 crore to set up Wenzhou Framekart Trade Co in China and will acquire 95% of the equity share capital there.
The Lenskart board has also allotted 5.86 lakh equity shares to eligible employees under the Lenskart Employees Stock Option Plan, 2021. These shares have been valued at ₹34.4 crore based on the closing price.
