Lenskart shares up by 5% today: What's the reason?
What's the story
Lenskart's shares jumped over 5% in intra-day trade today. The company's share price hit a high of ₹432.35, up by as much as 5.1%. The surge comes after Lenskart reported a healthy performance for the July-September quarter, with net profit rising by nearly 20% year-on-year to ₹102.2 crore from ₹85.4 crore during the same period last year.
Financial growth
Lenskart's revenue and profit surge
Lenskart's revenue also saw a significant jump, growing 20.8% YoY to ₹2,096 crore from ₹1,735.6 crore in Q2 FY25. The company attributed this growth to higher demand across its online and offline channels. Sequentially, the company's profit surged by an impressive 70.3%, much higher than the ₹60 crore reported in Q1 FY26. Notably, there were no exceptional losses this quarter as opposed to ₹10.4 crore in Q1 of the current fiscal year.
Market outlook
Jefferies sets ₹500 target for Lenskart
Global brokerage Jefferies has given a 'Buy' rating on Lenskart, setting a share price target of ₹500. This indicates a potential upside of 23% from the current levels. The brokerage noted that Lenskart's unique structure, multi-channel operating model, and measured expansion strategy offer strong visibility for sustained earnings growth. They also highlighted the company's hybrid operating structure as a key driver in improving margins and enhancing customer experience.
Growth strategy
Domestic market dominance and international expansion
Jefferies noted that over 85% of Lenskart's operating profit comes from India, highlighting the domestic market as its strongest growth engine. The company has also expanded its international footprint to over 10 countries through organic growth and acquisitions such as Owndays in Asia and Stellio/Meller in Europe. Despite global markets growing at a modest pace, Jefferies believes that Lenskart can capture higher market shares due to its efficient supply chain and differentiated cost structure.