Lenskart Shares Jump 11% To All-Time High After Q2 Profit More Than Doubles

Lenskart, an omnichannel eyewear retailer, experienced a significant surge in its stock price after reporting a substantial increase in its Q2 profit. The company's shares climbed as much as 11.1%, reaching an all-time high of ₹767.4 on the BSE. The stock opened 7.8% higher at ₹745.05, surpassing its previous closing price of ₹691 before settling at ₹733.55 by late morning trading. This positive movement propelled Lenskart's market capitalisation to ₹1,27,586.8 Cr, equivalent to approximately $13.5 billion.

The Q2 FY27 results, announced yesterday, indicated a remarkable 124.7% year-over-year increase in consolidated net profit, reaching ₹232.5 Cr. Concurrently, operating revenue expanded by 35.7% to ₹2,845 Cr. The improvement in profitability was attributed to revenue growth outpacing the increase in expenses. Analysts remain optimistic about the company's prospects, citing strong same-store sales growth in India, store additions, higher realizations, and the company's increasing in-house manufacturing capabilities.

Several brokerages have maintained positive ratings on Lenskart, noting the company's strong performance in various aspects. Jefferies retained its 'Buy' rating and raised the price target to ₹780, citing continued growth and margin expansion. Equirus raised its target price to ₹874, expecting the company's revenue to grow at a compounded annual rate of 24% between FY26 and FY29. Nomura also maintained a 'Buy' rating, projecting a potential upside of 21.1% from the current share price.

While most brokerages expressed confidence in Lenskart's future, Citi took a more cautious stance, retaining its 'Neutral' rating despite raising its target to ₹700 from ₹650. The brokerage acknowledged that operating leverage and in-house manufacturing should support gradual margin improvement, but noted that premium valuations and tougher comparisons in the second half could limit the scope for a valuation rerating.