Lenskart Q3 Profit Soars 70x, Stock Hits All-Time High

Introduction: A Record-Breaking Quarter

Shares of Lenskart Solutions surged to an all-time high on February 12, 2026, after the company announced exceptional financial results for the third quarter of fiscal year 2026. The stock climbed 12.2% to a peak of ₹523.4 on the BSE, driven by a staggering 70-fold year-on-year increase in net profit. This performance significantly outpaced the broader market, as the BSE Sensex traded lower. The robust earnings report triggered a wave of positive revisions from brokerage firms, which raised their target prices in response to the company's strong operational execution and growth momentum.

Unpacking the Financial Performance

Lenskart's Q3 FY26 results demonstrated significant strength across all key financial metrics. The eyewear retailer reported a consolidated net profit of ₹131 crore, a massive leap from the ₹1.85 crore recorded in the same quarter of the previous fiscal year. On a sequential basis, the profit grew 28% from ₹102.2 crore in Q2 FY26. Revenue from operations also saw a substantial increase, rising 38.3% year-on-year to ₹2,307.73 crore from ₹1,669 crore in Q3 FY25. This growth was underpinned by a sharp improvement in profitability, with Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) growing 90.6% to ₹462.4 crore. Consequently, the EBITDA margin expanded significantly, reaching 20.1% compared to 12.7% in the corresponding period last year.

Key Drivers of Growth

The company's impressive performance was not merely a financial outcome but was fueled by strong operational execution. Management clarified that the growth was primarily volume-led, supported by a strategic focus on expanding the market. Lenskart conducted 6.3 million eye tests globally during the quarter, a 54% increase year-on-year. This initiative helped attract new customers, with nearly half of the tests being first-time examinations. The company also continued its aggressive retail expansion, adding a net of 195 new stores in Q3, a significant acceleration from the 81 stores added in the same period last year. This expansion did not lead to cannibalization, as evidenced by a robust 28% Same-Store Sales Growth (SSSG) and a 36% Same-Pincode Sales Growth in India.

Brokerages Turn More Bullish

The stellar quarterly report prompted several brokerage firms to upgrade their outlook on Lenskart. Morgan Stanley upgraded the stock to ‘Overweight’ from ‘Equal-weight’, raising its target price to ₹561 and calling the performance a “massive beat.” Similarly, JM Financial maintained its ‘Buy’ rating and increased its target to ₹565, highlighting the company's ability to balance aggressive expansion with improving profitability. Jefferies, which raised its target to ₹575, described the quarter as “exceptional” and praised management's focus on long-term growth over short-term margin maximization. Macquarie also lifted its target to ₹550, citing strong store additions and operating leverage.

A Balanced View on Valuation

While most analysts were optimistic, some maintained a more cautious stance due to the stock's high valuation. Citi, for instance, retained its ‘Neutral’ rating, raising its target price to ₹520. The brokerage acknowledged the strong execution but noted that the current market price already factors in much of the anticipated growth. The stock's Trailing Twelve Months (TTM) Price-to-Earnings (P/E) ratio stands at a premium, which presents a risk if the company fails to sustain its high growth trajectory. Other concerns highlighted by market observers include a recent decrease in promoter holding and the inherent risks of rapid retail expansion.

Management's Vision for the Future

During the post-earnings call, Founder and CEO Peyush Bansal emphasized that the improved profitability is a result of operating leverage rather than cost-cutting. He stated, “In Q2, we said we are entering a compounding phase. Q3 validates that decisively.” This sentiment underscores the company's strategy of reinvesting in growth to expand its market share and scale its operations. The management's focus remains on leveraging technology and its vertically integrated supply chain to enhance efficiency and customer experience. The company is aiming for a long-term steady-state EBITDA margin of approximately 25%.

Conclusion

Lenskart's third-quarter performance has firmly established its position as a high-growth leader in the eyewear market. The company successfully translated its operational strengths—including rapid store expansion and increased market penetration through eye tests—into remarkable financial results. While the market has rewarded this performance by pushing the stock to new highs, the focus now shifts to sustaining this momentum. Investors will be closely watching whether Lenskart can continue to deliver on its growth promises to justify its premium valuation in the coming quarters.