Lenskart Shares Surge Over 5% on Strong Q2 Results; Jefferies Sets Rs 500 Target

Shares of Lenskart Solutions Ltd. experienced a significant rally, surging over 5% on Monday, December 1, following the release of its impressive financial results for the second quarter of fiscal year 2026. The eyewear retailer's stock climbed as much as 5.37% to ₹432.50 per unit on the National Stock Exchange. At 9:58 am, it was trading up 3% to ₹422.85. The positive movement is attributed to a robust increase in both profitability and revenue, reinforcing investor confidence after the company's recent listing.

Lenskart reported a consolidated profit after tax (PAT) of ₹102.21 crore for Q2 FY26, a 19.59% increase compared to ₹85.46 crore in the same period last year. Sequentially, the profit jumped 67% from ₹61.17 crore recorded in the previous quarter. Revenue from operations also witnessed substantial growth, climbing 20.76% year-on-year to ₹2,096.14 crore from ₹1,735.68 crore in Q2 FY25.

The company's operational strength was further highlighted by a surge in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which rose nearly 45% to ₹415 crore, compared to ₹287 crore in the corresponding quarter of the previous year. The EBITDA margin expanded to 19.8% from 16.5% in the same quarter last year.

Lenskart's financial performance showcased growth in both its Indian and international segments. Revenue from the India operations grew by 22.2% to ₹1,232.9 crore. The international revenue of Lenskart grew by 26.2% year on year to ₹927.8 crore. The India business remained the primary contributor, generating ₹1,230.6 crore in revenue. Meanwhile, the International segment, boosted by subsidiaries such as Owndays, delivered ₹879.6 crore.

Global brokerage Jefferies has initiated coverage on Lenskart with a 'Buy' rating and a price target of Rs 500, suggesting a potential upside of nearly 23% from its current price. In a more optimistic scenario, the brokerage sees the stock potentially reaching Rs 560, indicating a 38% rise.

Jefferies is optimistic about Lenskart due to the under-penetration in India's eyewear market and the company's significant long-term growth opportunities. They emphasize Lenskart's vertically integrated business model, which allows for complete control over cost, improved delivery timelines, and the standardization of customer experience.

These strong Q2 results come shortly after Lenskart's IPO, which was priced between ₹382 and ₹402 per share. While the IPO was met with some criticism regarding the company's valuation, the recent financial performance appears to be bolstering investor confidence.