Lenskart Solut. Q1 FY27 Earnings Call — Analysis (NSE: LENSKART)
Revenue up 34%, PAT triples; robust same-store sales growth of 18.3% despite rapid store expansion, underscoring market creation narrative.
Result quality: strong — Margin expansion. Management sentiment: optimistic.
The take
Q1FY27 Consolidated Revenue ₹2,714 Cr ( +34% YoY ) . New story: India underpenetrated market creation .
Results
Consolidated revenue ₹2,714 Cr +34% YoY; PAT ₹228 Cr +182% YoY; India EBITDA margin 15.4% (+2pp), international margin 10.6% (triple).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹2,714 Cr | +34% | yoy · Q1FY27 |
| PAT | ₹228 Cr | +182% | yoy · Q1FY27 |
| India Revenue | ₹1,531 Cr | +30.7% | yoy · Q1FY27 |
| India EBITDA pre-Ind AS 116 | ₹236 Cr | +51.5% | yoy · Q1FY27 |
| India EBITDA margin | 15.4% | +2pp | yoy · Q1FY27 · from 13.3% |
| International Revenue | ₹1,203 Cr | +38% | yoy · Q1FY27 |
| International EBITDA pre-Ind AS 116 | ₹127 Cr | +~200% | yoy · Q1FY27 · triple last year |
| International EBITDA margin | 10.6% | +6.1pp | yoy · Q1FY27 · from 4.5% |
Guidance
India points past 10,000 stores; international margin expansion trajectory to continue.
What management committed to
- India alone points past 10,000 stores now. — past 10,000
- Meller is tracking to be a $70 million plus brand already. — $70 million plus
- International EBITDA margin will continue to improve on year-on-year numbers. — FY27 onward
Key themes
Market creation, store densification, premiumization.
How the narrative shifted
- India underpenetrated market creation: 78 crore Indians need vision correction; Lenskart is building the market, not capturing share, by creating demand through eye tests and affordable access.
- Store densification without cannibalization: Adding stores in existing pin codes increases total demand rather than dividing it; SSSG remains high and same-pin-code sales growth runs ahead of SSSG.
- Premiumization and brand building: Customers are trading up faster than expected; Owndays, Rodenstock, Tokai, Meller and new launches target higher price points while Hustlr Club maintains volume entry.
- International profitability inflection: International EBITDA margin crossed 10% for the first time, removing doubts about profitability; now the focus shifts to scaling and replicating the India playbook.
- Technology-led scalability: AI self-eye test, remote optometry, and RFID are engineered solutions to scale eye tests and improve customer experience beyond traditional optometrist capacity.
- Backward integration and manufacturing: Increased in-house manufacturing and Hyderabad plant capex improve cost structure, product margins, and insulate against currency headwinds.
Operational commentary
- Store expansion at record pace: 455 net new stores in 9 months, entering 152 new pin codes within existing cities and 140 new towns; India white space of over 6,100 pin codes remains, pointing past 10,000 store potential.
- Same-store sales growth (SSSG) robust at 18.3% despite densification; same pin code sales growth at 24% proves demand is added, not divided — Bengaluru example: 189 stores (+13 in nine months) still delivering 20% SSSG.
- Eye tests surged 42.7% YoY to 63 lakhs, driven by remote optometry now in 786 stores (up from 168 in FY25); eye tests remain top-of-funnel driver for volume growth.
- International business turned profitable at a significant scale: EBITDA margin crossed 10% for the first time (10.6%), revenue up 38% led by volume and same-store growth; Meller tracking to exceed $70 million brand size.
- Premiumization gaining momentum: Owndays prescription eyewear >₹1,500 Cr annually; Rodenstock/Tokai high-end lenses ~₹250 Cr; launched Under Armour exclusive brand; at the other end, Hustlr Club ₹500 glasses profitably scaled.
- Technology enablement: AI self-eye test entered pilot stores; RFID rollout across products to improve in-store experience; manufacturing scaling with Hyderabad plant capex of ₹132 Cr in the quarter.
- Cash flow and capital discipline: operating cash flow ₹297 Cr (82% conversion); net cash inflow ₹116 Cr before M&A/equity raise; ROCE improved to 23%.
Analyst Q&A
Q. How will store growth behave as you scale from 2,700 to 10,000 stores — could SSSG come under stress?
Peyush detailed that demand is underpenetrated, eye tests create new customers, older cohorts continue to contribute to SSSG, and the key is engineering more eye tests per store, reducing wait times, and expanding relevant price segments.
Q. SSSG, SPSG, NPS all moderated this quarter — any common thread, and where does NPS stand post-quarter?
Peyush acknowledged communication confusion on policies caused a temporary NPS dip, which is now bouncing back to original levels. He clarified SSSG accelerated to 18.3% versus 16% last year, and eye test growth is driving robust demand.
Research and educational content only. Not investment advice.