Morgan Stanley has initiated coverage on Lenskart Solutions Limited, assigning an equal-weight rating to the eyewear retail stock along with a price target of ₹445.00 per share.

Coverage Initiation Details

The global investment bank's decision to begin coverage represents a notable development for Lenskart Solutions, bringing institutional research focus to the company's stock performance and business prospects.

Rating Implications

The equal-weight rating indicates Morgan Stanley's neutral stance on the stock, suggesting the brokerage views Lenskart Solutions as fairly valued at current market levels. This rating typically reflects a balanced risk-reward profile, where the stock is expected to perform in line with broader market or sector averages.

The ₹445.00 price target established by Morgan Stanley provides a specific valuation benchmark for investors tracking the eyewear retailer's stock performance. This target represents the brokerage's assessment of the company's fair value based on their analytical framework and market conditions.

Morgan Stanley's initiation of coverage marks the brokerage's entry into the analysis of Lenskart Solutions, a significant move for the eyewear retailer in terms of institutional attention and market perception.

Lenskart Solutions , a leading eyewear company, has reported impressive financial results for the second quarter of FY26, showcasing robust growth and improved operational efficiency. The company's performance highlights its strong position in the market and effective business strategies.

Key Financial Highlights

Revenue Growth

Lenskart Solutions demonstrated strong top-line performance with consolidated revenue reaching ₹21,486.00 million, marking a significant year-over-year increase of 24%. This growth indicates the company's ability to expand its market presence and attract more customers in the competitive eyewear industry.

Profitability Improvements

The company's profitability metrics showed notable improvements:

• PAT (Profit After Tax): Increased by 50% to ₹1,130.00 million, reflecting enhanced operational efficiency and effective cost management.
• EBITDA Margin: Expanded to 19.80% from 18.30% in the previous year, showcasing better cost management and improved economies of scale.

Operational Efficiency

The substantial improvement in EBITDA margin, which expanded by 150 basis points, highlights Lenskart Solutions' focus on operational excellence. This enhancement in profitability suggests that the company has successfully optimized its operations, potentially through better inventory management, streamlined processes, or economies of scale.

Business Expansion

Lenskart Solutions has been actively expanding its retail footprint. During the first half of FY26, the company added 203 new stores in India, demonstrating its commitment to increasing market penetration and accessibility for customers.

Same-Store Growth

The company achieved an impressive 15% same-store growth, indicating strong performance in existing locations and suggesting effective strategies in customer retention and sales optimization.

Volume Growth

Lenskart Solutions reported a 24% increase in the volume of eyewear units sold, aligning with its revenue growth and indicating strong consumer demand for its products.

Market Implications

Lenskart Solutions' strong quarterly performance may positively impact investor sentiment and reinforce confidence in the company's growth strategy. The robust financial results demonstrate the company's resilience and ability to thrive in the competitive eyewear market.

As Lenskart Solutions continues to show strong financial performance and expands its retail presence, it will be interesting to observe how the company maintains this growth trajectory and capitalizes on opportunities in the evolving eyewear industry.