Lenskart's Q2 profit more than doubles as margins expand

Lenskart Solutions Limited (NSE: LENSKART) reported Q2 FY27 revenue of ₹2,845 crore, up 32.5% year on year. Profit after tax rose to ₹232 crore from ₹113 crore, while pre-Ind AS 116 EBITDA margin expanded to 13.8%. What happened India revenue grew 35.3% to ₹1,668 crore. Eyewear volumes increased 26.5%, while same-store sales growth improved to 20.8% from 14.8% a year ago. International revenue grew 29.5%, or approximately 23% in constant-currency terms. The company added 143 net stores in India during the quarter and entered 61 new cities. For H1 FY27, operating cash flow was ₹388 crore against capital expenditure of ₹187 crore. Why it matters The result points to more than expansion-led growth. Higher same-store sales and eyewear volumes indicate demand within the existing network, while EBITDA growth of 65% outpaced revenue growth. This suggests improving operating leverage. The cash-flow position is also worth noting. H1 operating cash flow comfortably covered the reported expansion-related capital expenditure. One comparability point: the company states that most operating figures in its press release are based on pro forma financials. These should be reconciled with statutory consolidated results before making direct comparisons. What to watch next Track same-store sales growth, revenue per store and EBITDA margins as the store network expands. International profitability also deserves attention, with the segment's pre-Ind AS 116 EBITDA margin reaching 10.6% for the second consecutive quarter. Stance: Constructive on the operating momentum. The next test is whether LENSKART can sustain strong same-store growth while maintaining margins and returns on its expanding store base.