Lenskart Shares Rise 7% After Strong Q1 FY27 Results

Lenskart Solutions shares surged 7% to Rs 627 on Thursday following a strong first quarter performance in FY27. The retailer's financial results showed a substantial increase in revenue, profitability, and margins. Lenskart reported a 182.3% year-on-year rise in consolidated net profit to Rs 228 crore for the April-June quarter, while revenue from operations grew by 33.6% to Rs 2,214 crore.

EBITDA expanded by 61.3% to Rs 589 crore, reflecting the company's improving financial health. The growth was driven by both domestic and international markets, with India operations up 30.7% and international business rising 38%. Lenskart's product margin crossed the 70% benchmark for the first time, reaching 70.3%, compared to 68.7% in the previous year.

The improved margins and the company's ability to boost revenue while enhancing profitability have caught the attention of brokerages. Several firms, including Jefferies, Morgan Stanley, Goldman Sachs, Macquarie, and Motilal Oswal, have expressed a bullish outlook on Lenskart. While Citi has maintained a Neutral rating, noting that much of the anticipated growth may already be priced into the stock, many analysts believe that Lenskart's combination of revenue expansion and margin improvement is a key factor supporting the positive outlook.

The company's expanding international presence, stronger earnings growth, and operating efficiencies are expected to sustain investor interest and maintain the growth momentum.