Lenskart Shares Jump 11% After Q2, Up 90% From IPO: Gains Ahead?

Lenskart’s Earnings Momentum Tests the Market’s High Expectations

A sharp rise in profit and expanding margins have strengthened the growth case, but execution will matter as the stock trades well above its IPO price.

Earnings and margin gains drive the rally

Lenskart shares rose as much as 11.05% to a record ₹767.40 on the BSE in early trade after its Q2 FY27 results showed growth across revenue and profitability. At 9:52 a.m., the stock was up 5.57% at ₹729.50, while the Sensex had gained 2.09%. Trading was active, with 10 million shares changing hands across the BSE and NSE by that point. The broad market’s strength provided support, but the company’s earnings were a central part of the stock-specific story.

Net profit more than doubled to ₹232 crore, while revenue increased 32.5% to ₹2,845 crore from ₹2,147 crore a year earlier. India revenue grew 35.3%, and international revenue rose 29.5%. The spread of growth across both markets suggests the quarter’s performance was not limited to one geography, although sustaining that pace will depend on execution in each business.

Operating leverage lifts profitability

Pre-Ind AS EBITDA rose about 64% year on year to ₹390 crore, outpacing revenue growth. The margin expanded by about 265 basis points to 13.7%, with product-margin improvement and operating leverage supporting the increase. For investors, this is an important part of the results: growth accompanied by improving margins can strengthen the quality of earnings, rather than relying on revenue expansion alone.

Management reiterated that it intends to scale automated manufacturing infrastructure and reinvest near-term margin gains in global expansion and brand equity. That approach prioritises building the business over maximising margins immediately. The company’s stated long-term ambition is a 25% EBITDA margin, but it has not provided a timeline. Investors therefore need to weigh the margin opportunity against the investment required to pursue expansion.

Brokerage forecasts underline the growth expectations

Motilal Oswal Financial Services retained a ‘Buy’ rating and raised its target price to ₹815. Its revised FY26-29 estimates imply compound annual growth rates of 27% in revenue, 45% in pre-Ind AS EBITDA and 57% in adjusted profit after tax. The brokerage expects revenue growth to be led by India and international operations, and sees further margin expansion in both businesses by FY29.

Jefferies also described the growth and margin trajectory as intact, despite foreign-exchange pressure. It expects EBITDA to compound at about 35% or more over FY26-29 and cited store economics and faster payback as potential supports. Its ₹780 target price was presented as 16% upside from the previous close of ₹690. These are brokerage estimates, not assured outcomes; target prices can change as assumptions and business performance evolve.

A strong listing gain raises the execution bar

Lenskart listed on November 10 and was trading about 90% above its ₹402 issue price. That appreciation reflects strong investor demand, but it also means expectations are high. The key question is whether revenue growth, margin improvement and international expansion can progress together while the company reinvests in manufacturing capacity and brand building.

The quarter offers encouraging evidence, but one set of results cannot establish that the projected growth path will be achieved. A sustained rise in profitability, progress across markets and disciplined execution of the expansion strategy will be important indicators to track. The market’s positive response should be considered alongside the valuation and the possibility that results may not match current expectations.

Key Highlights

• Shares rose as much as 11.05% to ₹767.40 after the Q2 FY27 results.
• Revenue increased 32.5% to ₹2,845 crore, while profit more than doubled to ₹232 crore.
• Pre-Ind AS EBITDA grew about 64% to ₹390 crore; the margin expanded to 13.7%.
• India revenue grew 35.3% and international revenue increased 29.5%.
• The stock was about 90% above its ₹402 issue price; brokerages’ targets remain forecasts, not guarantees.

Investor Note: Lenskart’s quarterly growth and margin improvement are positive signals, but the stock’s substantial rise since its IPO makes delivery against future expectations especially important. Investors should assess the business’s execution and valuation alongside brokerage forecasts rather than treating the recent rally or target prices as assurance of further gains.