Skip to content

    Lenskart Solutions Q4 FY26 earnings call

    LENSKART
    Consumer Services·20 May 2026
    Management Summary

    Lenskart reported a robust Q4 FY26, with consolidated revenue growing 41% YoY to ₹2,516 crores and EBITDA margins expanding to 21.3%. For the full year, the company achieved over ₹1,000 crores in pre-Ind AS EBITDA and ₹530 crores in PAT. Growth was fueled by strong eye test volumes, significant store expansion, and robust performance in both India and international markets, particularly in Tier 2 cities and Japan. The company is prioritizing an AI-first operating model and scaling to 100 million customers.

    Highlights

    5

    • Consolidated revenue grew 41% year-on-year to ₹2,516 crores in Q4 FY26, marking the strongest quarter as a public company.

    • EBITDA grew 61% year-on-year in Q4, with EBITDA margins expanding 2.7 percentage points to 21.3%.

    • Full Year FY26 saw pre-Ind AS EBITDA cross ₹1,000 crores and PAT scale to ₹530 crores.

    • Global eye tests increased 45% year-on-year to 6.8 million in Q4, with units growing 25% year-on-year.

    • India delivered a Same Store Sales Growth of 24% and Same Pincode Sales Growth of 31% in Q4, with NPS reaching an all-time high of 81.4.

    Concerns

    3

    • Rupee depreciation on imports acts as a headwind, though largely offset by international business and vertical integration.

    • The external environment, including geopolitics, currency, and demand cycles, could create short-term bumps.

    • Middle East, representing about 6% of international stores, experienced a temporary dip in store traffic, though business proved resilient and recovered.

    What Changed1

    vs Q1 FY27

    Guidance items4 → 5 (+1)
    Key financials

    Metrics

    10

    Periods

    2

    Headline

    9
    • Revenue
      ₹2,516 Cr
      YoY+41%
    • EBITDA Margin
      21.3%
      YoY+2.7%
    • EBITDA (pre-Ind AS)
      ₹322 Cr
      YoY+99%
    • EBITDA (pre-Ind AS) Margin
      12.8%
      YoY+3.7%
    • PAT
      ₹204 Cr

    FY26

    1
    • Operating Cash Flow
      ₹887 Cr

    Segment breakdown

    • India₹1,475 Cr58.3%
    • International₹1,054 Cr41.7%
    Donut· Share of Revenue (Q4 FY26)

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    fully funded from operating cash flows of ₹887 crores in FY26

    Debt

    Net ₹3,881 crores

    M&A

    Meller

    acquisition · Other

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    India EBITDA (pre-Ind AS) Margin
    approximately 25%
    		High
    Profitability
    Long-term EBITDA (pre-Ind AS) Margin
    approximately 25%
    		High
    Volume
    India Eyewear Units
    100 million
    		High
    Store Expansion
    Net New Store Additions
    around FY26 levels
    		High
    Customer Base
    Total Customers
    100 million
    		High

    What to watch in Q1 FY27

    5

    Net New Store Additions (FY27)

    FY27
    Current542 stores (FY26 level)
    TargetAround 542 stores

    Why it matters

    Indicates the pace of physical expansion and market penetration, crucial for growth in consumer services.

    net new store additions for FY27 are expected to be around FY26 levels.

    Risks & concerns

    3
    RiskSeverity

    Rupee depreciation on imports

    Rupee depreciation on imports is a headwind, but offset by international business and vertical integration. — Management acknowledged

    medium

    External environment uncertainty

    Geopolitics, currency, and demand cycles could create short-term bumps. — Management acknowledged

    medium

    Cannibalization from new store openings in same pincodes

    Management uses sophisticated cannibalization modeling and optimizes for market share within a 10-minute radius, believing their approach mitigates this risk. — Analyst downplayed

    low

    Q&A highlights

    8

    “not seen a meaningful impact due to freight and raw material, largely because I think it is a fraction of our total cost. Currency, of course, is the biggest variable. Rupee depreciation on imports is a headwind, but since 42% of our business is international and we continue to do more vertical integration, this has been offset so far.”

    Management explains how Lenskart's integrated and international business model helps mitigate macro-economic risks like currency depreciation and raw material costs.

    asked by Vivek Maheshwari

    3 min read6 chapters

    Detailed Narrative

    01

    Strong Q4 and Full Year FY26 Financial Performance

    Lenskart reported a robust Q4 FY26, with consolidated revenue growing 41% year-on-year to ₹2,516 crores, marking its strongest quarter as a public company. EBITDA grew 61% year-on-year, with margins expanding 2.7 percentage points to 21.3%, and PAT reached ₹204 crores. For the full fiscal year 2026, the company achieved significant milestones, including over ₹9,000 crores in revenue, ₹1,000 crores in pre-Ind AS EBITDA, and ₹530 crores in PAT, demonstrating a compounding effect of revenue on profitability.

    02

    India Business Drives Growth and Margin Expansion

    The India business was a key driver, delivering ₹1,475 crores in revenue in Q4 FY26, a 44% year-on-year growth. India's EBITDA pre-Ind AS 116 margin reached 15.3% in Q4, a 6 percentage point expansion from the prior year. This was supported by a 24% Same Store Sales Growth and a 31% Same Pincode Sales Growth, with eye tests increasing 50% to 6 million and eyewear units growing 24.3% year-on-year to 7.9 million units. The company added 170 net new stores in Q4, bringing the total India store count to 2,609.

    03

    Robust International Expansion and Profitability Improvement

    International operations also showed strong performance, with revenue growing 35.4% year-on-year (25% on a constant currency basis) to ₹1,054 crores in Q4 FY26. The International EBITDA pre-Ind AS 116 margin reached 9.2% in Q4, up from 8.1% last year, contributing to a full-year margin of 7%, a 3.4 percentage point improvement from FY25. Growth was broad-based across Japan, Southeast Asia, and the Middle East, with Japan being the strongest performer, and the total international store count reaching 718.

    04

    Strategic Focus on Tier 2 Markets and AI-First Operating Model

    Lenskart identified a significant opportunity in Tier 2 and beyond, with new stores in smaller towns delivering strong initial revenues. The company plans to adopt an AI-first operating model in FY27, transforming from a consumer tech to a consumer AI company. This strategy aims to embed AI across all functions, from product design to manufacturing and customer acquisition, to achieve its goal of scaling to 100 million customers.

    05

    Efficient Capital Allocation and Strong Liquidity Position

    In FY26, Lenskart generated ₹887 crores in operating cash flows, which fully funded its store capex for 603 net new stores and investments in manufacturing, including a new Hyderabad facility. The company maintained a strong net cash balance of ₹3,881 crores, excluding IPO-related payables. This efficient capital management resulted in a return on capital employed of 23%, a 9 percentage point expansion from the prior year, demonstrating effective use of capital.

    06

    Premiumization and Global Brand Building with Meller

    Lenskart is actively pursuing premiumization, with customers upgrading to offerings like Owndays lenses, Meller sunglasses, and the new B by Lenskart smart eyewear. The Meller brand, acquired previously, is performing exceptionally well, exceeding expectations and experiencing stock-outs across markets. It has been launched in over 1,000 stores in India and is expanding globally to the Middle East, Southeast Asia, and Japan, with the aim of building it into a next-generation global consumer brand.

    This is an AI-generated summary of a publicly available earnings call transcript.