Lenskart shares climbed as much as 11.1% to an all-time high of ₹767.4, following the announcement of its Q2 FY27 results yesterday
Strong India sales growth and improving profitability reinforced brokerages’ confidence in its expansion, with Jefferies and Equirus raising their price targets
Nomura’s ₹888 target is the highest among the brokerages, while Citi retained a ‘Neutral’ rating, citing premium valuations and tougher second-half comparisons
Shares of omnichannel eyewear retailer LensKart
surged as much as 11.1% to an all-time high of ₹767.4 on the BSE today after the company reported a sharp increase in its September-quarter profit.
The stock opened 7.8% higher at ₹745.05 against yesterday’s closing price of ₹691. It subsequently pared some gains to trade at ₹733.55 at 11:15 IST, up 6.2%. At that price, Lenskart’s market capitalisation stood at ₹1,27,586.8 Cr (about $13.5 Bn).
The rally followed Lenskart’s Q2 FY27 results, announced yesterday. Consolidated net profit increased 124.7% YoY to ₹232.5 Cr, while operating revenue grew 35.7% to ₹2,845 Cr. Revenue growth outpaced the increase in expenses, supporting the improvement in profitability.
Most brokerages remained positive on the company, pointing to strong same-store sales growth in India, store additions, higher realisations, and increasing in-house manufacturing.
Jefferies retained its ‘Buy’ rating and raised its price target to ₹780 from ₹680, citing continued growth and margin expansion.
The brokerage said Lenskart is broadening its customer base through Hustlr Club, targeting the next 100 Mn Indians, while its premium retail format, evolv, and smart glasses offer additional growth opportunities. It added that strong growth supports the company’s premium valuation.
Equirus also raised its target to ₹874 for December 2027 from ₹698 for September 2027, retaining its ‘Long’ rating.
The brokerage expects Lenskart’s revenue to grow at a compounded annual rate of 24% between FY26 and FY29, supported by growth in both India and international markets. It models around 620 annual store additions over the next few years and expects greater in-house manufacturing to support margins.
Nomura retained a ‘Buy’ rating with a target of ₹888, implying potential upside of 21.1% from ₹733.55. It highlighted operating leverage across India and international operations, with in-house manufacturing and rent leverage supporting domestic margins.
Meanwhile, CLSA maintained an ‘Outperform’ rating with a ₹773 target. It said Q2 sales growth was in line with its estimate, while EBITDA exceeded consensus estimates by 3%. The brokerage highlighted robust India volumes and better-than-expected profitability.
HSBC retained its ‘Buy’ rating with a ₹790 target, highlighting India same-store sales growth of around 21% and international constant-currency growth of 23%. The brokerage sees a larger opportunity in international operations than previously anticipated and revised its assessment of India’s margin expansion potential.
Macquarie maintained an ‘Outperform’ rating with a ₹750 target. It said faster store additions and an improved product mix helped India EBITDA grow 50% YoY, exceeding its expectations.
The brokerage also sees AI-led eye testing increasing testing capacity and easing constraints arising from optometrist availability. It factored in stronger average selling prices, supported by 7% growth in the first half of FY27.
Lenskart added 165 net stores during Q2, including 143 in India and 22 overseas. India same-store sales grew 20.8%, while eyewear volumes increased 26.5% to 86 Lakh units.
Citi took a more cautious stance, retaining its ‘Neutral’ rating despite raising its target to ₹700 from ₹650.
While store expansion, premium lenses, and higher volumes should support growth, the brokerage expects operating leverage and in-house manufacturing to drive gradual margin improvement.
However, it said premium valuations and tougher comparisons in the second half would limit the scope for a valuation rerating.
Source: Inc42
