💰 Financial Performance

Revenue Growth by Segment

India business grew 24.7% YoY in H1 FY26. International business grew 26.1% YoY on a pro-forma basis in H1 FY26. Total pro-forma revenue for Q2 FY26 was INR 21,466 million, up 24% YoY.

Geographic Revenue Split

India remains the primary market with 24.7% growth; International markets (Singapore, UAE, Saudi Arabia, Japan, Thailand) contributed 26.1% growth. Singapore and UAE are established leaders, while Japan and Thailand are in scaling phases.

Profitability Margins

Product margins improved to 69.2% in Q2 FY26 from 64% in FY23 due to vertical integration. PAT margin for Q2 FY26 stood at 5.3% (INR 1,130 million), up from 4.4% YoY. H1 FY26 PAT margin was 4.6% (INR 1,937 million).

EBITDA Margin

Consolidated EBITDA margin reached 19.8% in Q2 FY26 (INR 4,258 million), up from 18.3% YoY. India EBITDA margin was 19.5% in H1 FY26, while International EBITDA margin was 18.2%.

Capital Expenditure

Significant investments in a new Hyderabad manufacturing plant and the Bhiwadi lens factory to drive backward integration. Specific INR Cr values for total planned CAPEX were not disclosed in the documents.

⚙️ Operational Drivers

Raw Materials

Frames (acetate, metal) and Lenses (CR-39, polycarbonate). Vertical integration provides a 35% to 40% cost advantage over competitors.

Import Sources

Transitioning from imports to domestic manufacturing in India (Bhiwadi and Hyderabad). International markets like Japan (Tokai lenses) and Germany (Rodenstock) provide technology and premium components.

Key Suppliers

Internal manufacturing units (Bhiwadi for lenses, Hyderabad for frames); Licensed partnerships with Rodenstock (Germany) and Tokai (Japan).

Capacity Expansion

In-house frame manufacturing scaled from 4.4 million frames/year in FY23 to approximately 4 million frames in H1 FY26 alone. Targeting over 450 net new store additions in India for full year FY26.

Raw Material Costs

Product margins of 69.2% imply raw material and direct manufacturing costs are approximately 30.8% of revenue. Shifting manufacturing to India is expected to save 20% to 25% on costs.

Manufacturing Efficiency

Vertical integration and centralization drive a 35-40% cost advantage; Kaizen processes implemented daily to find efficiencies in packaging and engineering.

Logistics & Distribution

Proprietary logistics system offers 50% money back if next-day delivery is missed, ensuring high reliability and brand trust.

📈 Strategic Growth

Expected Growth Rate

20-26%

Growth Strategy

Achieved through vertical integration (69.2% margins), aggressive store expansion (>450 stores in FY26), and market densification using GeoIQ analytics. International scaling in Japan and Thailand and premiumization through the Meller brand (higher margins) are key drivers.

Products & Services

Prescription eyeglasses, sunglasses, contact lenses, blue-block lenses, and comprehensive eye-testing services (9.3 million tests conducted in H1 FY26).

Brand Portfolio

Lenskart, Owndays, Meller, Rodenstock (licensed), Tokai (licensed), Dealskart.

New Products/Services

Premium brand Meller and neuroscience-based Tokai lenses; AI virtual try-on features driving 45% digitally influenced sales.

Market Expansion

Targeting 2,000 new towns in India; expanding footprint in Saudi Arabia, Thailand, and Japan to replicate the Singapore market leadership model.

Market Share & Ranking

Less than 5% market share in India (estimated $9.2 billion market); Largest eyewear player in Singapore (1 in 4 people wear Lenskart).

Strategic Alliances

Partnerships with Rodenstock for German lens technology and Tokai for Japanese neuroscience lenses; acquisition of Meller for premium segment entry.

🌍 External Factors

Industry Trends

Shift from unorganized to organized retail; increasing myopia rates globally; technology-led omnichannel adoption (45% digital influence). Lenskart is positioned as a vertically integrated cost leader.

Competitive Landscape

Competes with local unorganized opticians and global players like Owndays (now part of the group); focuses on NPS and quality rather than direct price wars.

Competitive Moat

Durable moat through vertical integration (40% cost advantage), high Net Promoter Score (79), and proprietary tech (GeoIQ). Sustainability is driven by the 'compounding flywheel' where growth fuels further cost efficiencies.

Macro Economic Sensitivity

High sensitivity to consumer discretionary spending; 60% myopia rate in India and 80% in SE Asia drive structural demand.

Consumer Behavior

60% of customers prioritize quality followed by style; increasing demand for neighborhood accessibility and next-day delivery.

Geopolitical Risks

Trade barriers affecting lens imports, mitigated by shifting manufacturing to Bhiwadi and Hyderabad.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015 and SEBI (Depositories and Participants) Regulations 2018 following listing.

Taxation Policy Impact

Subject to standard corporate tax; GST impact noted in Q2 FY26 financials for the month of September.

⚠️ Risk Analysis

Key Uncertainties

Integration risks of new acquisitions (Meller, GeoIQ); execution risk in high-growth markets like Saudi Arabia; potential quality issues (e.g., blue-block lens feedback).

Geographic Concentration Risk

India remains the dominant revenue source (24.7% growth), though international markets are scaling rapidly.

Third Party Dependencies

Reducing dependency on third-party lens manufacturers by scaling the Bhiwadi and Hyderabad plants.

Technology Obsolescence Risk

Mitigated by 500+ engineers and continuous investment in AI and retail analytics.