Lenskart Solutions has received a Buy rating from analysts with a target price of ₹525.00, representing significant upside potential from the current market price of ₹452.65. The recommendation is supported by a DCF-based valuation implying a multiple of 56x December 2027E EBITDA.

Market Opportunity and Growth Drivers

The Indian eyewear industry presents substantial growth opportunities with a current market size of ₹9 billion. According to Redseer research, the sector is positioned for robust expansion driven by several favorable macro trends. Key growth catalysts include a significant 700 basis points reduction in GST, increasing prevalence of refraction errors, and growing consumer acceptance of eyewear as fashion accessories. These factors are expected to drive an industry compound annual growth rate of approximately 13.00%.

Market Position and Competitive Advantages

Lenskart has established itself as India's leading eyewear retailer with a 5.00% market share and ambitious plans for global expansion. The company's competitive positioning is strengthened by its technology-centric approach across all business functions, enabling superior operational efficiency and customer experience.

Technology Integration and Operational Excellence

The company demonstrates significant technological sophistication through comprehensive automation and vertical integration across its operations. At the backend, Lenskart has implemented extensive automation systems that enhance operational efficiency. The frontend customer experience is enhanced through innovative solutions including remote optometry services and virtual try-on capabilities.

Advanced analytics play a crucial role in strategic decision-making, with the company utilizing geo-analytics and Vision AI technologies for optimal store location identification and merchandising strategies. This technology-driven approach has enabled Lenskart to maintain agility and responsiveness in a competitive market environment.

Financial Performance and Store Economics

Lenskart's operational metrics demonstrate strong business fundamentals with same-store sales growth ranging between 15.00% and 16.00%. The company has achieved impressive delivery capabilities, offering next-day delivery services across 58 cities, which enhances customer satisfaction and competitive positioning.

The store-level economics are particularly attractive, with payback periods of approximately 10 months. This metric compares favorably with leading peers in the discretionary retail space, reflecting high store throughput and efficient capital deployment at the store level.

Expansion Strategy

Lenskart's growth strategy includes aggressive network expansion with plans to add 450 stores in FY26E. The company has successfully extended its market leadership beyond India, establishing significant market presence in international markets including Singapore and Dubai. This international expansion demonstrates the scalability of Lenskart's business model and technology platform across different geographic markets.

Lenskart Solutions has announced a significant corporate development through its subsidiary Stellio Ventures, which has received approval to establish a new step-down subsidiary in the United Kingdom.

Strategic Subsidiary Formation

The newly approved UK subsidiary will serve as a dedicated vehicle for the growth and expansion of the Meller brand. This corporate structure development indicates the company's commitment to strengthening its international presence through strategic subsidiary formations.

Corporate Structure Enhancement

The establishment of this UK step-down subsidiary through Stellio Ventures demonstrates Lenskart's systematic approach to international market expansion. The move is designed to facilitate the operational and strategic growth of the Meller brand in the UK market.

Business Development Focus

This subsidiary formation represents a focused effort to enhance the Meller brand's market position and operational capabilities in the United Kingdom. The step-down subsidiary structure will provide the necessary corporate framework for brand development and market expansion activities.