Broker’s call: Lenskart Solutions (Buy)

Target: ₹600

CMP: ₹486.55

Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform, addressing a structurally underpenetrated eyewear category in India (53 per cent of the population impacted, modest about 35 per cent penetration).

We expect Lenskart to deliver a CAGR of 25/53 per cent in pro forma consolidated revenue/pre-IND AS EBITDA, largely driven by volume growth, product margin improvement, and around 625 bps operating leverage-driven margin expansion over FY25-28 (about 320 bps over 9MFY26-FY28).

Lenskart’s near-term FCF generation is impeded by upfront capex on the upcoming Hyderabad facility (to future-proof the business). However, we expect significant improvement in FCF generation (to around 65-70 per cent of pre-IND AS EBITDA) beyond FY28.

We initiate coverage on Lenskart with a BUY rating and a TP of ₹600, premised on DCF-implied 55x FY28E pre-INDAS EBITDA. Our valuations for Lenskart are at a premium to other leading retailers, but we believe the multiples are justifiable, given Lenskart’s superior growth profile, limited organised competition and long growth runway.

Key risks: Significant dependence on China for import of raw materiall; High concentration of manufacturing operations in North India; Loss-making overseas subsidiaries dilute overall profitability; and shortage of trained optometrists.

Published on February 23, 2026