Lenskart Solutions reported a net profit of ₹228 crore for the quarter ended June 30, 2026, a 182% year-on-year increase from the previous year’s period. Consolidated revenue rose 34% YoY, driven by broad-based growth across domestic and international markets. The company’s post-rent EBITDA doubled, reflecting significant operating leverage as same-store sales growth (SSG) in India held steady at 18.3% despite aggressive store expansion.

Financial Performance

The financial results highlight a divergence between top-line growth and margin expansion, with profitability accelerating faster than revenue. India revenue grew 30.7% YoY to ₹1,531 crore, while the segment’s EBITDA pre-Ind AS 116 margin expanded by 2 percentage points to 15.4%. This margin improvement was fueled by product margin expansion to 64.2% and marketing efficiency gains, which fell from 5.7% to 4.8% of revenue.

Internationally, revenue grew 38% YoY to ₹1,203 crore (29% on a constant currency basis). The international segment achieved an EBITDA pre-Ind AS 116 margin of 10.6%, up from 4.5% last year, with absolute EBITDA tripling to ₹127 crore. This improvement stems from deeper supply chain integration for brands like Owndays and Meller, pushing product margins to 77.1%.

*Consolidated revenue figures derived from segment disclosures.

What the Numbers Show

A critical analytical observation is the disproportionate contribution of the international segment to consolidated profits despite lower absolute revenue compared to India. While India generated higher revenue (₹1,531 crore vs ₹1,203 crore), the international segment’s EBITDA of ₹127 crore represents a significantly higher margin yield (10.6%) compared to India’s implied EBITDA contribution relative to its larger base. Furthermore, the company generated ₹297 crore in operating cash flow, achieving an 82% EBITDA-to-cash conversion ratio. This strong cash generation funded ₹75 crore in store capex and ₹132 crore in plant capex, primarily for the Hyderabad facility, leaving a positive net cash inflow of ₹116 crore before M&A activities.

Operational Highlights

Same-store sales growth in India remained robust at 18.3%, broad-based across tiers. Same pin code sales growth reached 24%, outpacing SSG and indicating that densification strategies are generating incremental demand rather than cannibalizing existing stores. The company added 116 net new stores in India and entered 50 new cities. Eye tests grew 42.7% to 63 lakh, with remote optometry now available in 786 stores, up from 168 at the end of FY25.

Internationally, growth was volume-led, with eyewear units up 37.6% and transacting customers rising 27.8%. Sunglasses units surged 58.4% due to seasonal peaks. The company added only 16 net new stores internationally, highlighting the strength of its existing store network. Return on capital employed (ROCE) improved to 23% from 14.6% last year, reflecting disciplined capital allocation and improving profitability.

Strategic Initiatives

Management emphasized market creation over competition, noting that 78 crore Indians need vision correction, a number expected to rise to 94 crore by FY30. The company launched a ₹500 eyewear option through Hustlr Club, targeting price-sensitive consumers, while simultaneously pushing premiumization with high-end lenses from brands like Rodenstock and Tokai. Internationally, Owndays is tracking to become a $70 million brand, up from $35 million at acquisition. The company also piloted AI-driven self-eye tests to scale beyond optometrist constraints, aiming to serve the next billion people with vision care infrastructure.

Lenskart Solutions has confirmed the formal incorporation of its step-down subsidiary, Wenzhou Framekart Trade Co., Ltd, in the People’s Republic of China. The company received the Certificate of Incorporation on August 17, 2026, following the entity’s establishment on August 14, 2026. This development operationalises a strategic initiative approved by the Board of Directors on August 12, 2026, aimed at strengthening supply chain resilience and expanding the company’s global footprint.

Wenzhou Framekart Trade Co., Ltd is incorporated as a subsidiary of Baofeng Framekart Technology Limited (BFT), which is a joint venture of Lenskart Solutions. Upon incorporation, BFT holds 95% of the equity interest in the new entity. As a Chinese limited liability company, ownership is represented through equity interests rather than specific shares. The initial subscription cost was RMB 1 Million (approx. ₹14.14 Million), paid as cash consideration by BFT.

Strategic role and operations

The new entity will undertake the business of trading, importing, exporting, and procuring spectacle frames and allied optical products. Its scope includes related materials, equipment, and technology required for the business of BFT and its subsidiaries from time to time. This move supports Lenskart’s broader strategy of backward integration and localised supply chains, particularly in key manufacturing hubs like China.

Baofeng Framekart currently contributes more than 30% of the total eyewear production requirements of the Lenskart Group. The establishment of Wenzhou Framekart aims to enhance manufacturing control and support localisation strategies by streamlining procurement and trading activities within the region.

Recent financial context

This corporate action follows Lenskart’s strong Q1FY27 results, where consolidated net profit after tax (PAT) surged 182% to ₹228 crore. Consolidated revenue grew 33.6% to ₹2,714 crore, driven by robust performance in both domestic and international segments. The Board had previously approved several strategic initiatives alongside these results, including the acquisition of an additional 19% equity stake in Baofeng Framekart Technology Limited, increasing Lenskart’s indirect shareholding to 70%.

The company also approved the incorporation of OWNDAYS Korea as a wholly owned step-down subsidiary in the Republic of Korea during the same period. These moves underscore Lenskart’s push toward deeper vertical integration and expanded international presence.