Lenskart's Q2 results: Net profit surges 20% YoY to ₹102cr
What's the story
Lenskart, India's leading tech-driven eyewear retailer, has posted a strong set of earnings for the second quarter ending September. The company's net profit surged by 19.7% year-on-year to ₹102.2 crore from ₹85.4 crore in the same period last year. Sequentially, it was up by a whopping 70.3% from ₹60 crore in the previous quarter (Q1 FY25).
Financial performance
Revenue and EBITDA show significant growth
Lenskart's revenue for the September quarter also witnessed a healthy growth of 20.8% to ₹2,096 crore from ₹1,735.6 crore in the same period last year. The company's earnings before interest, tax, depreciation and amortization (EBITDA) rose by 44.5% year-on-year to ₹414.2 crore from last year's ₹287 crore. Sequentially too, it was up by 23.3% from Q1 FY25's ₹336 crore.
Margin expansion
Lenskart's margin expands in Q2
Lenskart's margin expanded to 19.76% in the September quarter, up from 18% in the previous quarter (Q1 FY25). The company's exceptional loss was nil as compared to ₹10.4 crore in the last quarter.
Market outlook
Jefferies initiates coverage on Lenskart with 'buy' rating
Ahead of the earnings announcement, brokerage firm Jefferies initiated coverage on Lenskart with a "buy" rating and a target price of ₹500 per share. The firm noted that despite holding just 5% market share, Lenskart has strong growth potential. It highlighted the company's vertically integrated omni-channel model as one of its key strengths, ensuring cost efficiency, rapid delivery and superior customer experience.