Lenskart's Vision for Growth: Q2 FY26 Performance Highlights

Lenskart Solutions Limited, a prominent player in the eyewear industry, has unveiled its Q2 FY26 financial and operational performance, demonstrating robust growth and strategic execution. The company, known for its mission to make high-quality vision accessible to all, reported a strong quarter, reinforcing its position as a technology-driven, vertically integrated eyewear leader. This update, their first since listing, provides a comprehensive look into their compounding business model and future outlook.

For Q2 FY26, Lenskart reported a consolidated revenue from operations of ₹2,146.6 Crore, marking a significant 23.9% year-on-year (YoY) increase. The company's EBITDA (pre-IndAS 116) stood at ₹425.8 Crore, growing 34.5% YoY, with the EBITDA margin expanding to 19.8% from 18.3% in Q2 FY25. Profit After Tax (PAT) saw an impressive surge of 49.6% YoY, reaching ₹113.0 Crore, with the PAT margin improving to 5.3% from 4.4% in the prior year period. For the first half of FY26 (H1 FY26), revenue was ₹4,178.8 Crore (up 25.3% YoY), EBITDA was ₹790.8 Crore (up 37.1% YoY), and PAT was ₹193.7 Crore (up 98.1% YoY). Notably, H1 FY26 PAT almost matched the full-year FY25 Adjusted PAT of ₹214.0 Crore, highlighting accelerated profitability.

Driving Growth Through Strategic Pillars

Lenskart's performance is underpinned by four structural pillars: vertical integration, technology-led omnichannel, strong brand pull, and operating leverage. The company's product margin reached 69.2% in Q2 FY26, a testament to its scale and centralized manufacturing, which provides a 35-40% cost advantage over industry averages. In H1 FY26, Lenskart manufactured 3.9 Mn frames and 2.6 Mn lenses in-house, contributing to higher margins. The omnichannel model, with 45% of sales digitally influenced, leverages AI-enabled virtual stylists and geo-analytics for efficient customer acquisition and store placement.

The Lenskart brand continues to demonstrate strong pull, reducing marketing costs from 9.7% of revenue in FY23 to 7.5% in H1 FY26. The loyalty program, Lenskart Gold, now boasts 7.4 Mn active members, generating ₹89.6 Crore in subscription fees in H1 FY26, a 121% YoY increase. This strong brand equity and customer loyalty drive predictable profitability. The company's Net Promoter Score (NPS) improved significantly from 70% in FY23 to 79% in Q2 FY26, reflecting enhanced customer experience.

Expanding Market Reach and Innovation

Lenskart is not merely competing in the existing market but actively expanding it. In H1 FY26, 46% of eye tests were for first-time users, indicating the company's success in making vision correction accessible and converting latent demand into active consumers. Eye tests grew by 46.9% YoY, driven by remote eye-test capabilities and AI-enabled diagnostic systems. The majority of revenue growth (22.0% YoY in H1 FY26) was volume-driven, with eyewear units sold increasing by 22.0% YoY.

Store expansion remains a key growth driver. In H1 FY26, Lenskart added 203 net new stores in India, a 136% increase from 86 in H1 FY25, expanding its presence to 431 cities. Tier 2+ expansion accelerated sharply, with 93 net new stores in H1 FY26 compared to 14 in H1 FY25, demonstrating healthy revenue per store and profitability in these markets. The company is targeting over 450 net store additions in India for the full FY26.

International markets are also contributing to growth, with the business delivering 26.1% revenue growth YoY in H1 FY26. The international segment's EBITDA margin was 18.2% (proforma) and 5.9% (pre-IndAS 116), up from 4.7% in H1 FY25. The majority of this growth was same-store driven, leveraging India's capabilities in supply chain, technology, and manufacturing. The company's international strategy is calibrated, with Singapore and UAE being established markets, while Japan and Thailand are scaling up.

Future Outlook and Strategic Initiatives

Lenskart is investing in future-ready initiatives, including the launch of 'B by Lenskart Smart Glasses' in Q4 FY26. These AI-powered camera smart glasses, built on Qualcomm's AR1 chip, will offer features like UPI payments, health monitoring, and real-time translation, aiming to redefine consumer technology. The company is adopting a full-stack approach for these smart glasses, designing hardware, software, and mobile apps in-house.

Furthermore, Lenskart is establishing a new Hyderabad manufacturing facility, expected to be operational in 18-24 months. This facility will significantly expand capacity to 50 Mn pairs per year, support backward integration, and serve as a smart logistics gateway for international exports. These investments are expected to fuel margin expansion, reduce lead times, and enhance innovation.

Despite a temporary demand softening in September 2025 due to GST revision anticipation, management noted a strong recovery in October and November, with overall performance metrics indicating a stronger growth trajectory for Q3 FY26. The company remains committed to transparent reporting and long-term health, focusing on its purpose to give vision to a billion people through the Lenskart Foundation.