Detailed Narrative
Strong Financial Performance Driven by Eye Test Growth
Lenskart reported robust Q3 FY26 results, with revenue growing 37% year-on-year to ₹2,308 crores. EBITDA saw a 90% year-on-year increase to ₹462 crores, pushing the EBITDA margin to 20%, a 550 basis point expansion. PAT more than tripled year-on-year to ₹133 crores. This growth was fundamentally accelerated by a significant increase in eye tests, totaling 6.3 million globally (up 54% YoY) and 5.5 million in India (up 60% YoY), with 49% of these being first-time eye exams.
India Business Outperforms with Record SSSG and Margin Expansion
The India business demonstrated exceptional performance, with revenue increasing 40% year-on-year and a record same-store sales growth (SSSG) of 28%. India's pre-AS EBITDA margin reached 14.9%, a 4.9 percentage point increase from the previous year, reflecting structural efficiencies. Eyewear unit sales grew 32% year-on-year, supported by a 7% increase in Average Selling Price (ASP) driven by customers opting for premium lens options like Owndays. The company added 169 net new stores in Q3, bringing the total India store count to 2,439.
International Business Shows Accelerated Growth and Margin Improvement
Lenskart's international segment experienced accelerated growth, with revenue up 32.7% year-on-year (24% in constant currency) and eyewear units growing 21%. International EBITDA reached 18.8% in Q3, a significant improvement from 10.9% a year ago, and post-rent EBITDA expanded to 6.4% from a negative 3.6%. This margin acceleration is attributed to structurally higher product margins of 75.7% internationally, compared to 63.5% in India, and ongoing supply chain integration. The company added 26 net new stores in Q3, bringing the international store count to 705.
Technology and AI as Core Growth Drivers
The company highlighted Artificial Intelligence and technology as fundamental accelerators of its growth. Investments in platforms like Tango Eye, Virtual Try On, and Location Intelligence (Geolo) are yielding results. Remote optometry tests grew 330% year-on-year, enabling precise eye exams for customers in remote areas and supporting the addition of 169 new stores in India. A new face scan feature, generating 100,000+ scans daily, is enhancing personalized frame recommendations and customer experience.
Strategic Focus on Market Creation and Customer Retention
Lenskart's strategy involves expanding the addressable market by conducting first-time eye exams, with 49% of Q3 eye tests being new. The company's Gold membership program now boasts over 8 million active members, contributing 37% of Q3 sales from repeat purchases, demonstrating effective customer retention and recurring revenue. Management views the difference between eye test growth (60%) and volume growth (30-31%) in India as a positive indication of market creation, as many first-time users take time to convert.
Capital Deployment for Expansion and Manufacturing
In the first nine months of FY26, Lenskart generated ₹485 crores from operating activities, which was primarily used to fund expansion. The company spent ₹288 crores to open 420 new stores and invested ₹267 crores in manufacturing, including the new Hyderabad facility. This indicates that operational cash flow is sufficient to cover store and plant expansion. The closing cash balance, including IPO proceeds, stood at ₹3,978 crores.
Entry into Smart Glasses with B by Lenskart
Lenskart announced the soft launch of its smart glasses, 'B by Lenskart,' in Q4 FY26, marking its transition towards an 'intelligence company.' The initial version will offer features like photo/video capture, meal logging, and AI chat. Management emphasized building an ecosystem around data capture and continuous software updates based on user feedback, rather than just hardware. They do not project material revenue contribution from smart glasses in the near term, focusing on learning and ecosystem development.