Shares of Lenskart Solutions fell over 2% to their day’s low of Rs 505 on the BSE on Thursday after SoftBank affiliate SVF II Lightbulb (Cayman) pared its stake in the eyewear retailer by selling 5.65 crore shares at Rs 508.55 apiece, according to exchange data.
Following the development, a host of global and domestic institutional investors picked up shares. The buyers included funds managed by Goldman Sachs and Fidelity, alongside domestic institutions such as ICICI Prudential Mutual Fund, Kotak Mutual Fund, Mirae Asset Mutual Fund, Quant Mutual Fund, HDFC Life Insurance and ICICI Prudential Life Insurance. The deal, valued at approximately Rs 2,873 crore, also attracted participation from several overseas pension and investment funds.
Recently, Elara Capital initiated coverage on Lenskart with a “Buy” recommendation and a target price of Rs 615. Based on its reference valuation of Rs 504, the target implies an upside potential of around 19%. The brokerage highlighted Lenskart’s integrated business model, which spans eye testing, manufacturing, distribution and retail operations, and described it as one of the most differentiated retail businesses in India.
According to Elara, the company’s store-level economics rank among the strongest in the retail sector. It cited revenue productivity of about Rs 25,000-30,000 per square foot, gross margins close to 69% and store payback periods of nearly 10-12 months.
The brokerage expects Lenskart to post a revenue CAGR of 25% and an EBITDA CAGR of 38% between FY26 and FY29.
Lenskart Q4 snapshot
The company reported a nearly 46% YoY surge in revenue from operations to Rs 2,516 crore for the January-March quarter of FY26, from Rs 1,727 crore in the year-ago period, leading to bullish brokerage calls and target price hikes.
While the company reported a strong surge in revenue, its net profit declined 9% YoY to Rs 200 crore during the quarter under review, from Rs 219 crore in the corresponding quarter of the previous financial year.
For the entire financial year which ended on March 31, 2026, Lenskart reported a 32% YoY rise in revenue to Rs 9,002 crore. EBITDA climbed 55.3% YoY to Rs 1,789 crore, while adjusted PAT surged 148% YoY to Rs 530 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
