Lenskart Shares Gain After 20% Surge in Revenue and Profit; Jefferies Predicts More Upside With ‘Buy' Rating

Lenskart Solutions saw strong buying interest on Monday, December 1, as the stock rallied over 5% in early trade on account of strong Q2 earnings. The Lenskart share price touched an intraday high of Rs. 432.50 after the eyewear company posted strong revenue and profit growth for the quarter.

Lenskart Share Price Today

By 11 AM, Lenskart shares were trading at Rs. 420.30, up by 2.40% for the day. Since its market debut on November 10, the stock has gained 4.37%.

Jefferies Initiates Coverage With 'BUY' Rating

Global brokerage firm, Jefferies initiated coverage on Lenskart with a 'BUY' rating and set a price target of Rs. 500. In its report, Jefferies pointed out that Lenskart, despite being India's largest tech-driven eyewear retailer, commands only around 5% market share, providing major headroom for expansion.

The brokerage firm said, "Its vertically integrated omni-channel model ensures cost efficiency, rapid delivery, and superior customer experience. India serves as a bedrock with an 85% contribution to EBITDA, while the international segment offers optionality."
The firm expects the company to deliver over 50% adjusted EBITDA CAGR between FY25 and FY28.

Lenskart Q2 Results

On Saturday, Lenskart announced its second-quarter results, posting a strong set of numbers in FY25. The company's net profit rose 19.7% year-on-year to Rs. 102.2 crore, compared to Rs. 85.4 crore a year earlier. Sequentially, net profit recorded an impressive 70.3% jump from Rs. 60 crore in the previous quarter. The eyewear retailer also reported no exceptional losses, improving further from the Rs. 10.4 crore seen in Q1.

On the revenue front, Lenskart posted a 20.8% year-on-year rise to Rs. 2,096 crore, compared to Rs. 1,735.6 crore in the same quarter last year. Sequentially, revenue increased 10.6% from Rs. 1,894.4 crore. The company's EBITDA jumped 44.5% to Rs. 414.2 crore year-on-year, while sequential EBITDA rose 23.3% from Rs. 336 crore. The EBITDA margin expanded to 19.76%, indicating structural improvement in profitability.

Outlook for the Company: Jefferies Sees Strong Growth Ahead

In its outlook, Jefferies said it expects Lenskart to deliver 24% revenue CAGR between FY25 and FY28, due to higher volumes, new trial users, and increased purchase frequency.

"We expect revenue CAGR of ~24% over FY25-28E led by volume growth (mainly TU & frequency). Adj. EBITDA should grow at >50% CAGR with margin expansion (FY25-28E: +600 bps) led by op. leverage and international GM improvement. EPS to grow at c. 44% CAGR. The balance sheet is net cash, with rising return ratios and FCF." The report stated

Lenskart solution made a successful debut in the stock market after its IPO in November this year.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.