The Lenskart share price has jumped 4% on strong Q2 performance. Jefferies maintained its Buy call on the stock and reaffirmed the target price of Rs 500 per share. This implies 18.5% upside potential from current levels. The brokerage said the quarter showed that Lenskart is settling into a steadier, multi-vertical growth cycle backed by improving unit economics and stronger margin quality.
Jefferies said the company’s financials, combined with the pro forma statements released alongside, give a consistent picture of rising profitability, better channel mix, and continued gains in eye-testing and eyewear volumes. The brokerage added that the omni-channel stack remains Lenskart’s core competitive advantage as it scales distribution and manufacturing.
Jefferies on Lenskart: Revenue and profit trajectory strengthens
Lenskart’s consolidated Q2FY26 profit rose to Rs 102.21 crore from Rs 85.46 crore in Q2FY25. The Q2FY26 revenue from operations climbed to Rs 2,096.14 crore from Rs 1,735.68 crore in Q2FY25, a 20.76% rise YOY.
The brokerage said the consistency between the reported and pro forma growth rates reinforces confidence in Lenskart’s medium-term demand profile.
Jefferies on Lenskart: Product margins expand again
Product margin accruals rose to Rs 1,485 crore in Q2 FY26 from Rs 1,180.7 crore in Q2 FY25, a 26% increase. Product margin improved to 69.2% from 68.1%, supported by better pricing mix, in-house manufacturing efficiencies and greater contribution from premium frames and lenses. Jefferies said the improvement shows that the platform benefits from scale even in a market with rising competition.
The brokerage added that margin expansion remains one of Lenskart’s most important levers as it invests in store expansion, technology, and supply chain.
Jefferies on Lenskart: Eye-testing and eyewear volumes remain key growth drivers
Lenskart conducted 13 million eye tests in FY25, up from 5 million two years earlier. In H1 FY26 alone, it has already conducted 9.3 million tests more than the full-year figure of FY24.
Jefferies said this eye-testing infrastructure is central to Lenskart’s long-term strategy because it creates recurring demand, drives walk-ins, and anchors the brand’s service-led model.
Eyewear sales grew 20.2% year-on-year, while eye-testing revenue rose 44.3%, reflecting deeper penetration into Tier-II and Tier-III regions.
The brokerage said these metrics demonstrate that Lenskart continues to widen its customer funnel while maintaining a differentiated value proposition.
Jefferies on Lenskart: Why pro forma financials matter
In his letter to shareholders, CEO Peyush Bansal said the reported financials reflect acquisitions from their respective transaction closing dates, which can “distort the trend analysis.” Jefferies agreed, saying the pro forma statements offer a more stable view of underlying demand.
The brokerage cited the CEO’s explanation: “Pro forma financial statements present the financials as if the acquired businesses had always been part of the company and hence represent a clearer business trajectory.”
Jefferies said this approach helps investors evaluate operating momentum without the noise of accounting timelines.
Jefferies on Lenskart: Offline expansion remains central to the strategy
Lenskart continued to scale its offline footprint, supported by steady store economics and stronger footfalls. The brokerage said the company’s domestic network expansion is aligned with its long-term goal of becoming the country’s primary eyewear retailer across income brackets.
Jefferies added that quick commerce is also contributing meaningfully, particularly in metro markets, and now forms a stable growth vector within the broader omni-channel architecture.
The brokerage said this dual-channel strength helps Lenskart reduce dependence on online-only sales and stabilises margins as customer acquisition costs come down gradually.
Jefferies on Lenskart: Key risk factors to monitor
Jefferies, however, pointed out key risks for Lenkart. These include,
- Pace of international expansion,
- Supply-chain efficiencies at new manufacturing facilities,
- Competition from horizontal marketplaces,
- Continued growth in eye testing, and
- Sustainability of margins
It added that while demand visibility remains healthy, sharper price competition in premium eyewear and any delays in new facilities could temporarily affect profitability.
The brokerage said the valuation captures strong top-line growth, improving margins, and a proven ability to scale physical and digital channels simultaneously.
It added that Lenskart remains one of India’s few consumer-tech companies that combine manufacturing depth with a defensible retail footprint.
