Lenskart Solutions has received a bullish initiation from Emkay Global Financial Services, with the brokerage setting a Buy rating and target price of ₹525 per share. The technology-driven eyewear company, which operates across designing, manufacturing, branding, and retailing, is positioned for significant long-term growth according to the analysis.

Market Performance and Valuation

Lenskart shares were trading at ₹451.25 on Tuesday at 10:06 a.m., compared to the previous closing price of ₹456.20 on BSE, giving the company a market capitalization of ₹78,286 crores. The stock has gained approximately 10 percent since its listing debut.

The ₹7,278-crore Lenskart IPO made a muted debut, listing at ₹390 on BSE (3 percent discount) and ₹395 on NSE (1.74 percent discount) to the issue price of ₹402 per share.

Strong Financial Performance

Lenskart demonstrated robust financial growth in its recent quarterly results, showing significant improvement across key metrics.

Market Opportunity and Growth Drivers

Emkay highlighted India's eyewear market, estimated at $9 billion, as well-positioned for steady growth. The brokerage identified several key growth catalysts:

• 700 basis points GST reduction supporting market expansion
• Rising vision and refraction-related health issues
• Growing acceptance of eyewear as fashion accessory and necessity
• Industry CAGR expected at approximately 13 percent

Lenskart currently holds a 5 percent market share as India's largest eyewear retailer, with significant room for expansion in the fragmented market.

Technology-Led Competitive Advantages

The company's technology focus forms the core of its strategic differentiation. Emkay emphasized several technological capabilities:

• Backend automation and vertical integration
• Consumer-facing innovations including remote optometry
• Virtual try-on capabilities
• Geo-analytics and Vision AI for store expansion decisions
• Merchandising optimization through data analytics

Expansion Strategy and Store Economics

Lenskart's expansion strategy demonstrates attractive unit economics with strong return profiles.

The company has also gained meaningful international traction in markets such as Singapore and Dubai, supporting its global expansion ambitions.

Long-Term Growth Projections

Emkay projects substantial long-term growth potential for Lenskart, forecasting nearly 6x revenue growth in India over the next decade, translating to 20 percent CAGR. The brokerage expects:

• Revenue CAGR of 25 percent for FY25-28E
• EBITDA CAGR of 50 percent for the same period
• Average margin expansion of 150 basis points annually
• Overall EBITDA CAGR of around 30 percent

These projections compare favorably with other major retail players, who are expected to achieve 12-26 percent growth rates.

Financial Strength and Market Position

Lenskart maintains a strong balance sheet with net cash of approximately ₹4,000 crores, providing flexibility for expansion and growth investments. The company holds more than three times the scale of its nearest competitor, Titan Eyewear, in the eyewear segment.

The brokerage noted that most competitors focus on third-party premium brands, which represent only about 5 percent of India's eyewear market by volume, highlighting Lenskart's strategic positioning in the broader market opportunity.

Lenskart Solutions has implemented AI-enabled remote eye-testing technology across more than 500 stores as a strategic response to the persistent shortage of qualified optometrists across its markets in India, South-East Asia, and West Asia. The recently-listed company has repeatedly flagged the limited availability of qualified optometrists as a key operational risk in its regulatory filings.

AI-Powered Remote Testing Model

The company has deployed a centralized remote testing system where optometrists connect to stores through video links and proprietary AI-enabled diagnostic equipment. This model allows optometrists to effectively "teleport" into stores across the country, enabling a single optometrist to conduct significantly more eye tests than traditional store-bound setups.

According to company operations personnel, high-volume or clinically complex locations may continue to have on-site optometrists, but newer or lower-volume stores are increasingly designed around remote-testing from day one. The company expects remote and self-optometry to become the default foundational layer of eyecare delivery as it expands into underpenetrated markets.

Significant Volume Growth

The implementation has delivered substantial results in testing volumes. In the first half of FY26, Lenskart conducted 9.3 million eye tests in India, surpassing the total for the entire FY24. Eye test volumes grew 47% year-on-year, driven largely by the remote-testing capability.

The company also offers home eye tests in major cities, where routing algorithms assign the nearest available optometrist, enabling tests to be completed within 60 minutes.

Industry Comparison and Clinical Concerns

Lenskart's approach contrasts with its closest competitor, Titan Eye+, which continues to rely on traditional in-store clinical testing by optometrists. Titan Eye+ offers a "20-step zero-error" eye test performed by trained professionals.

Health experts have raised concerns about the clinical implications of AI-led retail-first models. Dr. Rajeev Prasad, secretary of the Indian Optometry Association and president of the Asia Pacific Council of Optometry, emphasizes that optometry's core value lies in preventive care, early detection, and timely referral, not merely prescribing glasses. The eye allows specialists to directly observe blood vessels and flag early signs of conditions such as diabetes or thyroid disorders.

Market Dynamics and Workforce Challenges

The optometry sector faces significant workforce challenges despite producing an estimated 6,000-7,000 bachelor-level optometrists annually. Many qualified professionals report unemployment or underemployment, with the gap driven by low compensation levels.

Three optometrists working at Lenskart stores reported being diploma holders earning between ₹20,000.00 and ₹25,000.00 per month. Industry experts note that large chains disproportionately hire diploma holders or short-course technicians, creating quality and accountability variations.

Technology and Liability Implications

Experts highlight that liability in technology-driven systems becomes more diffused. While licensed clinicians continue to bear responsibility for individual prescriptions, liability partly sits with technology architects managing data quality in AI-assisted practices. The model represents a centralization of clinical judgment with AI-enabled augmentation rather than pure automation, fundamentally changing the risk profile as scale multiplies both efficiency and consequences of potential failures.