Lenskart Q1FY27: Growth at premium valuation z`

$LENSKART registered a 43.3% YoY growth in consolidated revenue for Q1 FY27, with consolidated EBITDA margins expanding to 21.7% from 17.7%. Growth was predominantly volume-driven, with domestic eyewear units climbing 22.8% and eye tests jumping 42.7%, expanding the overall customer pipeline. Strong Domestic Presence & Low Cannibalisation: India revenue rose 30.7% YoY to ₹1,531 crore, anchored by an 18.3% Same-Store Sales Growth (SSSG). Net store additions reached 116 (mostly in Tier 2/3 markets). Same-pin-code sales growth (SPSG) outpaced SSSG at 24.3%, signaling that network density is expanding without cannibalising existing stores. International Business Turnaround: International revenue grew 38% YoY to ₹1,203 crore, driven by high-margin seasonal products (sunglasses) and supply-chain integration with Owndays and Meller. EBITDA margin for the segment expanded significantly to 21.9% from 16.9%, achieved with minimal network additions. Operating Leverage & Smart Eyewear Push: Consolidated product margin climbed to 70.3%, buoyed by lower marketing intensity and localized manufacturing at the Hyderabad plant. The brand also introduced "B by Lenskart"—a ₹22,000 smart eyewear product with audio, camera, and AI capabilities—generating over 80,000 early-access sign-ups to extend its ecosystem. Improving Financial Health vs. High Valuations: Capital efficiency strengthened, as operating cash flow reached ₹297 crore (exceeding ₹207 crore capex) and Return on Capital Employed (ROCE) rose to 23.2%. However, with valuations at 33x FY28E EV/EBITDA and 7.2x EV/Sales, upside remains capped, leaving little margin for execution slip-ups.