Lenskart Solutions Ltd
Lenskart Solutions Ltd
Consumer DiscretionaryIncorporated in 2008,Lenskart Solutions is a technology-focused eyewear company involved in the design, manufacturing, branding, and retail of prescription eyeglasses, sunglasses, contact lenses, and accessories.[1]
Lenskart demonstrates exceptional revenue growth at 33% CAGR over 3 years and 104% TTM profit growth, but trades at an expensive 175.2x PE with low ROE of 4% over 3 years and zero dividend payout. The growth story is compelling but current valuations leave limited margin of safety for new investors.
Key Fundamentals
MidcapEcommerceRetailTechnical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 77.0% CAGR over last 5 years
Weaknesses
6- Stock is trading at 10.3 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding is low: 17.6%
- Company has a low return on equity of 4.02% over last 3 years.
- Company might be capitalizing the interest cost
- Working capital days have increased from 24.3 days to 67.0 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoLenskart demonstrates exceptional revenue growth at 33% CAGR over 3 years and 104% TTM profit growth, but trades at an expensive 175.2x PE with low ROE of 4% over 3 years and zero dividend payout. The growth story is compelling but current valuations leave limited margin of safety for new investors.
- Compounded sales growth of 33% CAGR over 3 years and 58% CAGR over 5 years indicates strong and consistent revenue expansion
- Compounded profit growth of 104% TTM and 115% CAGR over 3 years shows rapid improvement in profitability
- 5-year profit CAGR of 77% demonstrates the business model is scaling towards sustained earnings power
- 78.95% of analyst ratings are Buy (15 out of 19 analysts) reflecting strong Street consensus on growth trajectory
- Market cap of Rs 87,385 Cr positions Lenskart as a large-cap consumer discretionary play with institutional liquidity
- ROE improving from 2% (5-year average) to 4% (3-year average) to 7% (last year) shows consistent upward trend in capital efficiency
- Only 5.26% of analysts (1 out of 19) have a Sell rating, indicating limited bearish institutional sentiment
- TTM sales growth of 32% remains robust and in line with the 3-year CAGR of 33%, showing no deceleration in topline momentum
- PE ratio of 175.2x is extremely elevated, pricing in years of flawless execution with no room for disappointment
- Price-to-book of 10.04x is expensive and suggests significant premium over tangible asset value
- 3-year average ROE of just 4% is poor for a company commanding such premium valuations
- Zero dividend yield with no payout despite reporting repeated profits raises capital allocation concerns
- Promoter holding at only 17.6% is unusually low, raising governance and alignment-of-interest risks
- Working capital days have deteriorated sharply from 24.3 days to 67.0 days, indicating potential inventory buildup or receivables stress
- Company might be capitalizing interest costs, which could be flattering reported profitability metrics
- Debt-to-equity ratio is undisclosed (null), limiting visibility into leverage and financial risk profile
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Q4FY26 PAT ₹204cr, 41% growth May 27
Revenue grew 41% YoY to ₹2,516 crores in Q4FY26 with PAT at ₹204 crores and EBITDA margins expanding to 21.3%.
- FY26 PAT surges 148% YoY May 26
Adjusted PAT rose 147.7% to ₹5,300 million for FY26 with revenue up 32.3% to ₹90,023 million. Board approved subsidiary mergers and ESOP allotment.
- GeoIQ now wholly-owned subsidiary Jun 10
Lenskart acquired remaining 7.65% stake in Quantduo (GeoIQ) for ₹36.76 million, making it 100% owned. GeoIQ reported FY26 turnover of ₹100.19 crore, up 40% YoY.
- $89M FTSE passive inflow expected Jun 19
Lenskart set to receive $89M (Rs 8.4B) in passive fund inflows from FTSE Index rebalancing effective June 19 at 3pm.
- Trading window closed from Jul 1 Jun 23
Lenskart closed its trading window from July 1, 2026 until 48 hours after Q1FY27 results, per SEBI insider trading regulations.
- Platinum Jasmine sells 2.3% stake Jun 12
Platinum Jasmine A 2018 Trust sold 4 crore shares on June 11 via on-market transaction, reducing holding to 9.78%.
TL;DR: Lenskart is delivering strong execution with 148% PAT growth in FY26 and expanding margins, supported by a technology-focused strategy through full ownership of GeoIQ analytics. FTSE index inclusion is driving institutional passive flows. No material headwinds are visible, though a 2.3% stake sale by Platinum Jasmine signals some early investor profit-taking. The trend is clearly improving with accelerating profitability and upcoming Q1FY27 results expected to confirm momentum.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 1,736 | 1,669 | 1,728 | 1,894 | 2,096 | 2,308 | 2,516 |
| Expenses | 1,449 | 1,459 | 1,436 | 1,558 | 1,683 | 1,845 | 1,979 |
| Operating Profit | 286 | 210 | 292 | 336 | 413 | 462 | 536 |
| OPM % | 16% | 13% | 17% | 18% | 20% | 20% | 21% |
| Other Income | 70 | 32 | 212 | 42 | 33 | 35 | 49 |
| Interest | 26 | 34 | 48 | 41 | 45 | 49 | 44 |
| Depreciation | 196 | 199 | 215 | 237 | 253 | 270 | 288 |
| PBT | 134 | 8 | 241 | 100 | 148 | 178 | 254 |
| Tax % | 36% | 77% | 9% | 39% | 30% | 26% | 20% |
| Net Profit | 86 | 2 | 220 | 61 | 103 | 133 | 204 |
| EPS in Rs | 11.08 | 0.02 | 2.84 | 0.78 | 1.24 | 0.76 | 1.15 |
Profit & Loss
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Sales | 905 | 1,503 | 3,788 | 5,428 | 6,653 | 8,814 |
| Expenses | 952 | 1,617 | 3,524 | 4,748 | 5,675 | 7,065 |
| Operating Profit | -47 | -115 | 264 | 680 | 977 | 1,749 |
| OPM % | -5% | -8% | 7% | 13% | 15% | 20% |
| Other Income | 127 | 116 | 140 | 175 | 351 | 159 |
| Interest | 7 | 23 | 83 | 124 | 147 | 178 |
| Depreciation | 39 | 85 | 418 | 672 | 797 | 1,048 |
| PBT | 33 | -108 | -97 | 59 | 385 | 680 |
| Tax % | 0% | 0% | -39% | 117% | 23% | 26% |
| Net Profit | 29 | -102 | -64 | -10 | 297 | 501 |
| EPS in Rs | 3.79 | -13.39 | -8.34 | -2.26 | 3.83 | 2.84 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Equity Capital | 15 | 15 | 15 | 15 | 154 | 347 |
| Reserves | 2,363 | 2,918 | 5,441 | 5,467 | 5,777 | 8,391 |
| Borrowings | 30 | 34 | 934 | 2,343 | 2,740 | 3,097 |
| Other Liabilities | 393 | 733 | 3,071 | 1,661 | 1,718 | 2,578 |
| Total Liabilities | 2,802 | 3,700 | 9,462 | 9,487 | 10,390 | 14,413 |
| Fixed Assets | 337 | 649 | 5,067 | 5,501 | 6,231 | 7,798 |
| CWIP | 5 | 133 | 134 | 71 | 107 | 112 |
| Investments | 841 | 1,048 | 787 | 1,003 | 1,038 | 513 |
| Other Assets | 1,618 | 1,869 | 3,474 | 2,912 | 3,014 | 5,991 |
| Total Assets | 2,802 | 3,700 | 9,462 | 9,487 | 10,390 | 14,413 |
Cash Flow
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Operating | -117 | -183 | 95 | 487 | 1,231 | 1,670 |
| Investing | 115 | -421 | -2,586 | 163 | -262 | -2,725 |
| Financing | -16 | 604 | 2,777 | -722 | -535 | 1,201 |
| Net Cash Flow | -18 | 0 | 285 | -72 | 434 | 145 |
| Free Cash Flow | -227 | -430 | -318 | 55 | 805 | 846 |
| CFO/OP | 242 | 150 | 45 | 80 | 137 | 110 |
Ratios
| Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|
| Debtor Days | 13 | 21 | 27 | 23 | 7 | 7 |
| Inventory Days | 233 | 141 | 163 | 148 | 198 | 138 |
| Days Payable | 136 | 109 | 154 | 111 | 135 | 127 |
| Cash Conversion Cycle | 110 | 53 | 36 | 60 | 69 | 19 |
| Working Capital Days | 352 | 115 | 57 | 11 | -5 | 67 |
| ROCE % | — | -3% | 0% | 2% | 6% | 8% |
Documents
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Company Information
Incorporated in 2008,Lenskart Solutions is a technology-focused eyewear company involved in the design, manufacturing, branding, and retail of prescription eyeglasses, sunglasses, contact lenses, and accessories.[1]