Motilal Oswal backs Lenskart after 33% revenue growth

Motilal Oswal reiterated Buy on Lenskart Solutions and set a Rs 815 target in a brokerage report published by NDTV Profit on Nov. 5 after Q2 revenue rose 33% year on year.

The Nov. 5 brokerage report frames Lenskart’s growth as largely intact: revenue reached Rs 2,850 crore in Q2, up 5% from Q1, while annual growth compared with about 34% in the prior quarter.

Motilal Oswal said the target price implied about 18% upside from the market price cited in the report. It based the valuation on 48 times December 2028 blended pre-Ind AS EBITDA, an adjusted operating-profit measure used by the brokerage.

The brokerage cited Lenskart’s manufacturing and logistics setup, backward integration, omnichannel reach, technology use and house-of-brands model as advantages in eyewear. It said those features support the company’s goal of making quality eyewear more accessible and affordable.

The quarter’s operating data showed a broader expansion. The report said sales volume increased about 27% year on year to 10.6 million, compared with about 25% growth in Q1, while implied average selling price rose about 4% year on year to Rs 2,681.

Lenskart added 165 net stores during the quarter, including 143 in India and 22 internationally, taking its network to 3,624 locations. The store base was about 23% larger than a year earlier, according to the report.

Margins also improved. Gross profit rose 34% year on year to Rs 1,990 crore, and product margin widened about 80 basis points from a year earlier to 70%. One basis point is one-hundredth of a percentage point.

Product margin fell 25 basis points from Q1 but was 20 basis points above the brokerage’s estimate.

Motilal Oswal forecast compound annual growth over FY26-FY29 of 27% in revenue, 45% in pre-Ind AS EBITDA and 57% in adjusted profit after tax. It projected revenue compound annual growth of about 28% in India and 25% internationally over that period.

The report also pointed to operating leverage from leases. Lenskart’s lease rentals rose 22% year on year, below the 33% revenue increase, while pre-Ind AS EBITDA rose 64% year on year to Rs 390 crore. The pre-Ind AS EBITDA margin expanded about 265 basis points from a year earlier to 13.7%.

The counterweight is cost growth and a small margin shortfall on one measure. Employee expenses rose about 24% year on year, other expenses excluding leases increased about 35%, and reported pro forma EBITDA margin of 21.9% was about 25 basis points below the brokerage’s estimate.

Adjusted profit after tax rose 2.1 times from a year earlier to Rs 226 crore and was 6% above Motilal Oswal’s estimate, which the report attributed to higher other income and a lower tax rate. NDTV Profit said the research was authored externally and did not constitute investment advice.

Source: brokerage report by Motilal Oswal published by NDTV Profit, Nov. 5, 2026