Lenskart target prices rise to Rs 650 on FY26 growth

What changed after the Q4 update

Multiple brokerages reaffirmed positive views on Lenskart Solutions after the company’s Q4 results, with several raising target prices. Emkay Global Financial Services maintained a Buy call and increased its target by about 4% to Rs 625 from Rs 600. Motilal Oswal reiterated Buy and raised its target price to Rs 650, citing growth visibility, margin expansion and structural advantages in Lenskart’s omnichannel model. Jefferies also kept a Buy rating and lifted its base-case target to Rs 600 from Rs 575.

The revisions are anchored in expectations of sustained growth in India and improving contribution from international markets. Emkay said the India business delivered topline growth of about 33% in FY26, led by about 21% same-store sales growth (SSSG). Emkay also said international business growth was about 30% in FY26, easing concerns about slower momentum in that segment.

Emkay’s view: TP raised to Rs 625

Emkay’s revised target of Rs 625 implies an upside of 28% from Wednesday’s close of Rs 486.85, according to the note referenced in the article text. Emkay increased the target price as earnings estimates were raised by about 5%. The brokerage also referenced its valuation basis as 56x Mar28E EBITDA.

Emkay highlighted two operating datapoints. First, the India business delivered about 33% topline growth in FY26, supported by about 21% SSSG. Second, it pointed to the international segment’s strong growth, which it said reduced worries about a potential slowdown.

International segment: revenue and growth signals

Emkay’s note cited a sharp rise in international revenue, stating that the segment’s revenue jumped 35.4% year-on-year to Rs 1,054 crore. The brokerage said this performance helped allay concerns around slower growth in the international business.

Separately, the broader compilation in the provided text also stated that international sales grew even faster at 40% in Q3, while India revenue rose 36% in the same period. Since these figures relate to different timeframes (FY26 vs Q3), they indicate that international growth has remained a focal point across broker reports.

Motilal Oswal: highest target at Rs 650

Motilal Oswal reiterated its Buy rating and raised its target price to Rs 650, premised on an unchanged 55x FY28E pre-Ind AS EBITDA multiple. It raised its FY27E and FY28E revenue forecasts by 5% and 6%, respectively, and increased pre-Ind AS EBITDA estimates by about 15% and 10%. It also raised PAT estimates by about 12% and 7%.

Motilal models a FY26-28E CAGR of 25% in revenue, 42% in pre-Ind AS EBITDA and 44% in PAT. It attributes this to about 26% and 23% revenue growth in India and international, respectively, along with margin expansion of about 275 basis points in India and 350 basis points internationally.

Jefferies and other global calls: base, upside and downside cases

Jefferies maintained its Buy call and increased its base-case target price to Rs 600. It also outlined scenarios: an upside case of Rs 675 and a downside case of Rs 400. Based on the earlier close of Rs 486.85, Jefferies’ base case implies an upside of more than 23%.

Other global broker views cited in the text included Goldman Sachs maintaining a Buy rating and increasing its target price to Rs 625, and Morgan Stanley maintaining an Overweight rating with a target of Rs 576.

Store footprint and operating scale highlighted by coverage notes

A coverage note in the provided text described Lenskart as India’s leading omnichannel eyewear platform operating in an underpenetrated market. It stated that Lenskart’s retail footprint spans 2,439 stores across 435+ cities in India and 705 stores internationally, primarily in Japan, Southeast Asia and the Middle East.

The same text referenced an aggressive store expansion cadence, with store additions of about 500 annually in India, and a calibrated expansion approach internationally where throughput improvement is expected to play a larger role.

Key numbers at a glance

Valuation framework and cash flow commentary

Initiation and coverage excerpts in the text repeatedly referenced a DCF-derived valuation framework around a 55x FY28E pre-Ind AS EBITDA multiple. The same material projected a consolidated pro forma revenue CAGR of about 25% and pre-Ind AS EBITDA CAGR of about 53% over FY25-28, driven by volume growth, product margin improvement, and about 625 basis points of operating leverage-led margin expansion over FY25-28.

The note also said near-term free cash flow generation is constrained by upfront capex for the upcoming Hyderabad facility, while free cash flow conversion is expected to improve to about 65-70% of pre-Ind AS EBITDA after FY28.

Risks flagged in the coverage text

The provided text listed several risks tied to the model. These include reliance on China for raw material imports, concentration of manufacturing in Northern India, losses from international subsidiaries affecting overall profitability, and a shortage of qualified optometrists.

These factors matter because the brokerage targets and valuation multiples are built around sustained growth and margin improvement, including international profitability improvement. Any disruption to sourcing, manufacturing, or staffing could influence execution against those assumptions.

What investors will track next

The immediate takeaway from the broker notes is that post-Q4, the market narrative remains centred on two levers: strong India same-store growth and international scaling without a growth slowdown. Investors will likely keep monitoring the pace of store additions, contribution from international operations, and progress on capacity expansion plans such as the Hyderabad facility, as referenced in the coverage text.