LENSKART

Delivers Strong First Post-IPO Quarter

reported a stellar Q3FY26 performance, its first real test since the November IPO. Consolidated net profit surged 240% YoY to ₹131 crore, albeit on a low base, while revenue rose 38% YoY to ₹2,308 crore. EBITDA nearly doubled to ₹462 crore, with margins expanding on operating leverage. The stock rallied 13% to a 52-week high of ₹532.40, reflecting investor confidence in the company’s growth trajectory. Financial & Operating Performance - Net profit: ₹131 crore, +240% YoY (base: ₹39 crore). - Revenue: ₹2,308 crore, +38% YoY, driven by volume expansion and new customers. - EBITDA: ₹462 crore, nearly doubled; margin expansion from operating leverage. - Volumes: +30% YoY, aided by 195 net new stores and healthy same-store-sales growth. Domestic Business Strength - GeoIQ AI algorithm optimises store placement, maximising catchment while limiting cannibalisation. - Eye-testing services positioned as a key lever for Tier-II and beyond penetration. - Company-owned, vertically integrated model ensures cost control and quality consistency. International Operations - Contribute ~40% of revenues, growing 33% YoY (constant currency +24%). - Margins remain dilutive: 6% pre-IndAS EBITDA vs 15% in India. - Scale yet to kick in across 705 international stores. - Market leadership in Singapore; expansion in Japan, Thailand, and Middle East faces challenges. Strategic Outlook - Premiumization expected to support margins with scale. - Competition intensifying, especially in domestic markets. - Management aims for faster ramp-up of new stores and improved utilisation. - Break-even for 24/7 digital platform delayed by one quarter. Valuation & Investor View - Stock up 31% since listing, trades at 127x FY27E P/E, considered expensive. - Massive addressable market driven by ageing population and rising awareness. - Sustained growth and margin expansion critical to justify premium valuation.