Lenskart Solutions Limited has officially incorporated Stellio Ventures UK Ltd as a step-down subsidiary, effective January 5, 2026, marking a strategic expansion into the UK eyewear market under the established 'Meller' brand.

Official Incorporation Details

According to the regulatory filing dated January 6, 2026, Stellio Ventures, S.L., a subsidiary of Lenskart Solutions Limited, has incorporated a wholly owned subsidiary named Stellio Ventures UK Ltd in England and Wales. The new entity becomes a step-down subsidiary of the parent company with specific objectives for UK market penetration.

Strategic Business Objectives

Stellio Ventures UK Ltd has been incorporated with the primary objective of selling eyewear products and related accessories under the 'Meller' brand in the United Kingdom. The subsidiary is yet to commence business operations, positioning itself as a key vehicle for Lenskart's UK market strategy.

Ownership Structure and Investment

The ownership structure reveals Lenskart Solutions Limited's indirect control through its subsidiary network. Stellio Ventures, S.L. will subscribe to the ordinary share capital of GBP 100, representing 100% of the share capital in the UK entity.

Regulatory Compliance

The incorporation has been disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing indicates that no governmental or regulatory approvals were required for the incorporation, and the entity operates within the retail eyewear industry segment.

Market Expansion Impact

This incorporation represents Lenskart's continued international expansion efforts, providing direct access to the UK eyewear market through the established 'Meller' brand. The step-down subsidiary structure allows for operational flexibility while maintaining strategic control over the UK operations.

Lenskart Solutions shares remain in focus following Emkay Global Financial Services' bullish initiation with a Buy rating and target price of ₹525.00, implying approximately 16% upside from current levels. The brokerage acknowledges that while the stock is already pricing in significant optimism with optically high valuations, the earnings compounding potential remains strong, justifying their positive stance.

Valuation Framework and Growth Outlook

Emkay's target price is based on a Discounted Cash Flow (DCF) methodology, translating into an implied 56x Dec-27E EBITDA multiple. Despite the premium valuation, the brokerage expects nearly 6x revenue growth in India over the next decade, implying approximately 20% CAGR with significant long-term headroom for expansion.

Market Opportunity and Structural Drivers

The bullish stance is anchored in strong macro tailwinds for the Indian eyewear market, currently valued at approximately $9.00 billion. Emkay highlights several structural drivers expected to fuel sustained expansion, including a sharp 700 basis points GST reduction, rising incidence of refractive errors, and increasing acceptance of eyewear as a fashion accessory.

These factors position Lenskart to capitalize on the expanding market while pursuing its global platform ambitions with meaningful traction in international markets like Singapore and Dubai.

Technology Integration and Operational Excellence

Lenskart leverages technology across its operations, with automation and vertical integration at the backend, while deploying remote optometry and virtual try-ons at the frontend. Advanced tools such as geo-analytics and Vision AI aid store location selection and merchandising decisions, translating into superior operating metrics.

Superior Unit Economics and Market Leadership

Lenskart enjoys attractive store economics with store-level payback period of around one year, supported by high throughput and low capital requirements of approximately ₹50.00 lakhs per outlet. The company's vertically integrated supply chain enables healthy gross margins of around 64% in India, significantly outperforming discretionary retail peers.

Most other players remain focused on third-party premium brands, a segment representing only about 5% of total industry volumes, limiting their ability to scale meaningfully compared to Lenskart's comprehensive approach.

Growth Optionalities and Future Prospects

Emkay believes the business offers multiple scalable growth optionalities that enhance medium-term prospects. A strategic shift toward company-owned, company-operated stores, combined with operating leverage on growth investments, is likely to drive average annual margin expansion of approximately 150 basis points, potentially resulting in EBITDA CAGR of 30% over the next decade.

In the medium term, Lenskart is expected to significantly outperform peers with revenue and EBITDA CAGRs of 25% and 50% respectively over FY25-28E, compared with 12-26% growth expected for other leading retail players.

Market Performance and Trading Activity

Shares of Lenskart Solutions were trading with a positive bias, up 0.60% at ₹455.60 in the latest session. The stock touched an intraday high of ₹459.80 and a low of ₹450.25, currently commanding a market capitalization of approximately ₹78,476.00 crore. With approximately ₹4,000.00 crore in net cash, the company remains well-capitalized to pursue growth opportunities and expansion into adjacent segments, supporting Emkay's positive outlook despite premium valuations.