Lenskart Q2 profit jumps 122% as sales growth, cost efficiencies lift margins

Eyewear major Lenskart's consolidated profit attributable to owners of the company more than doubled to ₹227.08 crore in the September quarter, rising 122.1% year-on-year, as revenue growth, higher sales volumes and improved operating efficiencies helped the retailer expand profitability. Revenue from operations grew 35.7% to ₹2,845.03 crore, while total expenses increased at a slower pace of 31.1% to ₹2,596.80 crore.

The sharp rise in profit also indicated an improvement in operating margins across both India and international businesses. Lenskart's EBITDA before the impact of Ind AS 116 rose 65% to ₹392 crore, with the margin expanding to 13.8% from 11.1% a year ago. On a post-Ind AS 116 basis, EBITDA stood at ₹624 crore.

Higher volumes and store expansion drive revenue

The company's growth was supported by an increase in eyewear sales, store additions and same-store growth. Lenskart sold 1.1 crore eyewear units globally during the quarter, up 27.1% year-on-year, while eye tests increased 40.4% to 80 lakh.

In India, same-store sales growth stood at 20.8%. The company added 165 net stores during the quarter, taking its total active store count to 3,624. India accounted for 143 of the additions, including 94 stores in Tier 2 and smaller cities.

India revenue grew 35.3% to ₹1,668 crore, while international revenue increased 29.5% to ₹1,201 crore. The international business also reported an improvement in pre-Ind AS 116 EBITDA margin to 10.6% from 7.3%.

Cost ratios and operating efficiencies support margins

In his note to shareholders, founder and CEO Peyush Bansal attributed the improvement in profitability to the company's focus on controlling more of its supply chain, from manufacturing to the customer.

"Our margin comes from one thing above all: how much of the chain we own, factory to face," Bansal wrote.

Lenskart said it manufactured 72% more frames and 52% more lenses in its own facilities during the quarter. Its overall product margin remained at 70%, compared with 69.2% a year earlier, despite currency-related headwinds.

In India, employee costs declined to 18% of revenue from 19.3% a year ago, while rent costs fell to 5.7% from 6.1%. Marketing expenditure also declined to 4.5% of revenue from 5.4%. However, Bansal said the lower marketing ratio reflected both efficiencies and timing, and indicated that the company intends to increase investments in brand building.

The India business reported pre-Ind AS 116 EBITDA of ₹267 crore, up 61.5%, with its margin improving to 16% from 13.4%.

"The margin follows the mission, not the other way round," Bansal said, adding that the company would prioritise investments in growth rather than pursue a 25% pre-Ind AS EBITDA margin as quickly as possible.

For the first half of FY27, revenue stood at ₹5,559 crore, up 33%, while profit after tax reached ₹461 crore, equivalent to 87% of the company's full-year FY26 profit.