Lenskart shares jump 10% as Q3 profit surges 6,800%
What's the story
Lenskart shares have jumped over 10%, trading at around ₹517 per share today. The eyewear retailer's impressive performance in the December quarter has led to a series of target price upgrades by leading brokerages. Morgan Stanley upgraded the stock to 'Overweight' from 'Equal-weight' and sharply raised its target price to ₹561 from ₹445, calling the performance a "massive beat."
Financial performance
Lenskart's Q3 FY26 results show massive growth
Lenskart's Q3 FY26 results showed a net profit of ₹131 crore, a massive jump from the ₹1.9 crore reported last year—a year-on-year jump of nearly 6,800%. The company's revenue also saw a 38.3% increase to ₹2,308 crore, compared to ₹1,669 crore in the same quarter last year. EBITDA rose by 118.9% to ₹464 crore from ₹212 crore a year ago while operating margins improved significantly to 20.1%, compared with 12.7% last year.
Regional performance
Domestic and international performance in the December quarter
In India, Lenskart's revenue grew by 36.8% to ₹1,385.2 crore from ₹1,012.9 crore in the previous year. EBIT stood at ₹160.8 crore, a 234.3% jump from ₹48.1 crore last year, resulting in an expansion of India-level margins to 11.6%, up from 4.7%. Internationally, revenue rose by 39.9% to ₹935.9 crore from ₹668.9 crore last year with EBIT improving to a profit of ₹32.5 crore against a loss of ₹42.4 crore last year translating into margin gains at 3%.
Operational growth
Key operating metrics and Citi's updated rating
Lenskart conducted 63 lakh eye tests in Q3, a 54% year-on-year growth. The company sold 89 lakh eyewear units, up by 30% YoY. It also opened 195 new stores in Q3, a 141% growth including 169 stores in India and 26 abroad. Despite the strong performance, Citi retained its Neutral rating on Lenskart Solutions with an updated target price of ₹520 from ₹500 due to potential valuation limits on near-term upside potential for the stock.