Lenskart Solut. Q2 FY27 Results (NSE: LENSKART)
Signal: Margin expansion
The read
The trajectory remains constructive: standalone revenue grew 35.3% YoY to ₹1,663.52 crore and operating margin reached 20.8%, extending the prior-results series' margin expansion into a seventh consecutive quarter. The key change is that margin expansion came despite employee costs rising 147.9% YoY, as other expenses declined 2.8%; EPS growth nevertheless lagged 69.4% PAT growth at 62.7% because of the enlarged equity base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,663.52 Cr | +35.3% | +9.1% |
| EBIT | ₹205.97 Cr | +26.1% | |
| Net profit | ₹167.85 Cr | +69.4% | |
| EPS | ₹0.96 | +62.7% | |
| EBIT margin | 20.8% |
P&L walk
Standalone revenue rose to ₹1,663.52 crore, +35.3% YoY and +9.1% QoQ; gross margin was broadly stable at 63.9%, while EBITDA margin expanded to 20.8% as other expenses fell 2.8% YoY despite employee costs rising 147.9%. PAT increased 69.4% to ₹167.85 crore, helped by operating improvement and ₹61.33 crore of other income, while EPS growth of 62.7% trailed PAT growth because the share base increased.
Key positives
- Standalone revenue reached ₹1,663.52 crore, growing 35.3% YoY and 9.1% QoQ, sustaining the company’s recent acceleration from ₹1,894 crore in Q1FY26 to ₹2,714 crore in Q1FY27 on the consolidated prior-results series.
- Operating margin expanded 265bps YoY to 20.8%; other expenses declined 2.8% YoY to ₹425.37 crore even as revenue grew 35.3%.
- Operating cash flow was positive at ₹377.10 crore in H1FY27 versus ₹351.87 crore in H1FY26, supporting continued asset investment.
- PPE plus CWIP rose 11.2% to ₹1,547.26 crore from March 2026, while depreciation increased 41.5% YoY to ₹139.39 crore in the quarter, indicating assets are being brought into the operating base.
Key concerns
- Employee benefits expense increased 147.9% YoY to ₹292.53 crore, raising employee-cost intensity to 17.6% of revenue from 9.6%; margin expansion therefore depends on continued control of other expenses.
- EPS growth of 62.7% trailed PAT growth of 69.4% as paid-up equity capital rose to ₹347.86 crore from ₹154.39 crore a year earlier.
- Other income increased 60.4% YoY to ₹61.33 crore, making non-operating income a material contributor to the gap between operating profit and reported PAT.
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