Lenskart shares hit record high after Q2 profit more than doubles; here's what brokerages say

Lenskart Solutions shares surged to a fresh all-time high of ₹762.75 on the NSE on Thursday, November 5, gaining 10.6% over the previous close, as investors cheered the eyewear retailer's September quarter earnings, which saw consolidated profit more than double. The stock subsequently pared some gains and was trading at ₹724.60, up 5.06%, at 1:41 pm.

The shares had opened at ₹750, against the previous close of ₹689.70, and touched an intraday low of ₹706.15. At the time, Lenskart's market capitalisation stood at approximately ₹1.26 lakh crore.

The rally followed Lenskart's Q2 FY27 results, announced on Wednesday. Consolidated profit attributable to the owners of the company surged 122.1% year-on-year to ₹227.08 crore, while revenue from operations grew 35.7% to ₹2,845.03 crore. Total expenses increased at a slower pace of 31.1% to ₹2,596.80 crore.

Pre-Ind AS 116 EBITDA rose 65% to ₹392 crore, with the corresponding margin expanding to 13.8% from 11.1% a year earlier.

HSBC upgrades rating; most brokerages retain positive stance

Among the brokerages covering the stock, HSBC upgraded Lenskart to 'Buy' from 'Hold', citing stronger-than-expected margin expansion in India and a larger growth opportunity in international markets. The brokerage said the pace of improvement in India's EBITDA margins had exceeded its earlier expectations and raised its earnings estimates. It also expressed greater confidence in the international business's growth and profitability prospects.

Several other brokerages retained their positive ratings following the results. Jefferies maintained its 'Buy' recommendation, citing the company's growth trajectory and scope for further margin expansion. Nomura also retained its 'Buy' rating, pointing to operating leverage across India and international operations, supported by in-house manufacturing and rental efficiencies.

Morgan Stanley maintained its 'Overweight' rating, while Motilal Oswal reiterated its 'Buy' recommendation. Both highlighted the company's growth prospects, competitive advantages and improving profitability.

CLSA retained its 'Outperform' rating, noting that EBITDA exceeded consensus estimates, with particularly strong performance from the India business. Macquarie also maintained its 'Outperform' call, citing higher store additions, better product mix and the potential of AI-led eye testing to improve customer acquisition.

Citi, meanwhile, retained its 'Neutral' rating. While acknowledging the company's growth and margin improvement, it remained cautious about Lenskart's premium valuation and tougher year-on-year comparisons in the second half.

Equirus also retained its 'Long' rating, maintaining a positive view on the company's expansion prospects.