Lenskart Q4 FY26: Profits outpace growth as the omnichannel flywheel accelerates

Lenskart closed Q4 FY26 with a clear signal: the business is scaling with operating leverage. Consolidated revenue for the quarter rose to INR 2,515.7 crore, up 40.6% year on year. EBITDA increased faster at INR 536.2 crore, up 61.2%, and EBITDA margin expanded to 21.3%. Adjusted profit after tax reached INR 203.6 crore, up 164.7%, translating to an 8.1% PAT margin.

For the full year FY26, revenue grew 32.3% to INR 9,002.3 crore. EBITDA rose 55.3% to INR 1,789.5 crore, and adjusted PAT grew 147.7% to INR 530.0 crore. Management also highlighted that EBITDA (pre-IndAS 116) crossed INR 1,000 crore in FY26.

The operating engine remained volume-led. In Q4, Lenskart performed 6.8 million eye tests globally, up 45.0% year on year, and sold 9.7 million eyewear units, up 25.2%. The store network continued to expand, with 183 net new stores added in the quarter and 603 for the full year, taking total active stores to 3,327.

India: strong same-store momentum and broad-based margin leverage

India revenue rose 44.1% year on year in Q4 to INR 1,475.0 crore, supported by continued volume growth and a strengthening customer franchise. India eyewear units sold grew 24.3% to 7.9 million units, while eye tests increased 50.1% to 6.0 million.

The company emphasized that growth is deepening through densification. Q4 same-store sales growth (SSSG) in India was 24.2%, while same-pincode sales growth (SPSG) was higher at 31.1%. Management presented the 690 basis point gap between SPSG and SSSG as evidence that new stores are unlocking incremental demand rather than cannibalising existing locations.

Profitability in India expanded meaningfully. Q4 India EBITDA margin rose to 21.1% from 15.5% in Q4 FY25, and EBITDA (pre-IndAS 116) margin improved to 15.3% from 9.0%. The drivers cited were operating leverage across employee costs, marketing, other expenses, and rent, while product margin stayed at 64.0% despite currency pressure.

Operationally, Lenskart accelerated store expansion in India. It added 542 net new stores in FY26 versus 282 in FY25, with a sharper push into Tier 2+ markets. In FY26, 254 of the 542 net additions came from Tier 2+ cities, and the company entered 157 new cities, taking its India footprint to 556 cities.

Customer experience remained a key management focus. India NPS reached 81.4 in Q4 FY26, and averaged 79.8 for the year. Next-day delivery now covers 78 cities in India, and management said AI-enabled process improvements have reduced resolution times for returns and warranties.

International: same-store driven growth with improving profitability

International revenue rose 35.4% year on year in Q4 to INR 1,054.0 crore. Management noted that constant-currency growth was about 25%, suggesting that currency tailwinds helped reported growth. International growth was described as being largely driven by same-store performance and online, supported by a measured pace of store openings.

International profitability improved on a pre-IndAS 116 basis. Q4 EBITDA (pre-IndAS 116) margin expanded to 9.2% from 8.1% in the year-ago quarter, while FY26 EBITDA (pre-IndAS 116) margin rose to 7.0% from 3.6% in FY25. Management attributed margin improvement to product margin expansion and operating leverage.

The company cited three drivers of international growth: prescription-led volume expansion, sunglasses growth led by Meller, and continued online growth. International eyewear units sold grew 29.1% year on year in Q4 to 1.8 million units. The international store base ended FY26 at 718 stores after adding 61 net new stores for the year.

Management also addressed near-term risks in international markets. The Middle East, which had 41 stores at FY26-end and represented about 6% of international stores, saw a short-lived dip in store traffic during recent geopolitical escalation, but management said operations returned to normal levels.

The strategic narrative: AI, manufacturing integration, and new form factors

The FY27 priorities section put a strong spotlight on an AI-first operating model. Management framed the next phase as a transition from a consumer-tech company to a consumer-AI company, with the intent to run thousands of experiments across data inputs such as face geometry, purchasing behavior, social trends, and store conversion.

A central element of this strategy is deeper integration across the value chain. Management described ambitions to use AI to connect eye test data with product design, and to compress the feedback loop between social trends and manufacturing. On the factory floor, the company spoke about pushing automation from about 75% toward near-full automation, including machine vision and AI-driven routing.

Manufacturing expansion remains a key long-term lever. The company disclosed increased in-house production in FY26, including 17.5 million prescription eyeglasses manufactured centrally, 7.8 million in-house frames, and 5.6 million in-house lenses. A major capex project is the Hyderabad facility, which management said is on track for commissioning in about 18 months, with a large portion of initial capex expected to be incurred during FY27.

In parallel, Lenskart announced a Thailand joint venture for frame manufacturing. The 50% JV with Sunrise (Matt Optical) is expected to contribute incremental frame supply through FY27 and is positioned as a cost advantage due to India’s zero-duty arrangement with Thailand.

The company also launched B by Lenskart in Q4 FY26, an AI-powered, prescription-lens capable smart glasses product. Management reported over 30,000 customers on the waitlist and described a phased rollout with continuous firmware and software updates. Importantly, management stated that smart glasses are a multi-year journey and that any near-term revenue upside is not factored.

Financial summary

Note: The company reports FY25 and Q4 FY25 PAT adjusted to exclude a one-time, non-cash FVTPL gain of INR 167.2 crore related to deferred consideration on the Owndays acquisition.

Cash flow and returns: growth funded from within

Lenskart reported operating cash flows of INR 886.7 crore in FY26, described as about 91% of reported EBITDA (pre-IndAS 116). Operating cash flow funded store capex of INR 418.8 crore and supported manufacturing capex, including investment toward the Hyderabad facility. The company also reported working capital release of INR 98.3 crore in FY26 driven by inventory days reducing to 43 days from 59 days, though management expects inventory days to normalise upward as stock is rebuilt.

Return on capital employed improved. FY26 ROCE was 14.7% on a reported basis, and 23.1% excluding undeployed IPO proceeds. Management positioned this as evidence of improving capital efficiency alongside aggressive store rollout.

Outlook: steady store additions, margin ambition unchanged

Management guidance stayed relatively high-level but clear on a few points. For FY27, net new store additions are expected to be at or around FY26 levels. The long-term steady-state EBITDA (pre-IndAS 116) margin expectation remains around 25%. Management also encouraged investors to track annual volume growth of 25% as a cleaner measure of underlying market expansion because it strips out ASP mix, currency translation, and campaign timing effects.

The main takeaway from Q4 FY26 is that Lenskart’s model is showing operating leverage while still investing for expansion. Eye tests, store densification, and customer experience are reinforcing one another, while international profitability is improving with supply chain integration. The next set of proof points in FY27 will likely revolve around whether the company can sustain its volume-led growth, maintain customer experience while opening stores at scale, and execute manufacturing investments without disrupting margins.