Lenskart Solutions Ltd Q2 FY27 Earnings Call: TTM Revenue Crosses Rs. 10,000 Cr, EBITDA Margin Expands to 13.8%

Lenskart Solutions Ltd held its Q2 FY27 earnings call on November 04, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Growth With Margin Expansion; Pro Forma Basis

• Revenue Rs.2,845 Cr, +32.5% YoY — Q2 FY 2026-2027; EBITDA rose 46.6% YoY to Rs.624 Cr, with pre-Ind AS EBITDA up 65% YoY (twice revenue pace) and margin expanding from 11.1% to 13.8%; PAT more than doubled to Rs.232 Cr.
• H1 FY 2026-2027 revenue of Rs.5,559 Cr grew 1.3x YoY — pre-Ind AS EBITDA grew 1.8x YoY to Rs.753 Cr; PAT of Rs.461 Cr is already 87% of full FY 2025-2026 PAT.
• Trailing 12 months crossed Rs.10,000 Cr revenue — with Rs.2,200 Cr EBITDA, Rs.1,300 Cr pre-Ind AS EBITDA and close to Rs.800 Cr PAT on 40 million happy units.
• 80 lakh eye tests globally, +40% YoY — ~70 lakh in India (78,000 Indians/day); units grew 27.1% YoY; 165 net new stores added globally, taking the network to 3,624 stores.
• India NPS recovered to 79.6 — after dipping to 77.6 in June (Q1 FY 2026-2027), despite opening roughly a store a day.
• All numbers on a pro forma basis — treating Lenskart, Mellor and GeoIQ as always part of the company; pro forma and reported financials are identical from Q3 FY 2025-2026 onwards, with differences only in Q2 and H1 FY 2025-2026 comparatives.
• ROCE of 22.5% in H1 FY 2026-2027 — vs 19% in H1 FY 2025-2026 and 14.6% for full FY 2025-2026.

Same-Store Growth Broad-Based; Densification Adds Demand

• India revenue Rs.1,688 Cr, +35.3% YoY — Q2 FY 2026-2027; H1 India revenue Rs.3,199 Cr, +33% YoY; management reiterated growth and profitability are positively correlated in its business.
• India EBITDA pre-Ind AS of Rs.267 Cr, +61.5% YoY — margin 16% vs 13.4% in Q2 FY 2025-2026; product margin 64% vs 63.4%, with rupee depreciation consuming most of the gains from in-house manufacturing.
• SSG of 20.8% vs 14.8% in Q2 FY 2025-2026 — broad-based across tiers; same pin code growth of 27.1% ran ~6 percentage points ahead of SSG, which management said shows densification adds demand rather than dividing it.
• 143 net new India stores added, 94 in tier 2+ towns — entering 61 new cities; total 2,868 stores as of 30 September 2026.
• Tier 2+ value creation per customer exceeds metro/tier-1 levels — driven by broader eyewear optionality (night-drive lenses, one-day lenses, progressives) and heavy logistics investment; tier 2 SSG is similar to metros as of Q2 FY 2026-2027.
• Lenskart Gold crossed 1 crore active members, +39% YoY — with Rs.73 Cr of gold fees collected in Q2 FY 2026-2027, +55% YoY.
• Hustler (Rs.500 complete pair) added lakhs of customers — many first-time glasses wearers; management hopes it is one way the next 100 million Indians find Lenskart, but cautioned the initiative needs time and considerable work remains on logistics, profitability and manufacturing scale.

Owndays/Meller Momentum; Smart Glasses Scale-Up

• International revenue Rs.1,201 Cr, +20.5% YoY (~23% CC) — EBITDA pre-Ind AS of Rs.127 Cr, +87% YoY; margin 10.6% vs 7.3% in Q2 FY 2025-2026; product margin 77.1% vs 75.5% on deeper Owndays/Meller supply chain integration and higher sunglasses mix.
• Growth was volume-led and largely same-store-led — RBO units +29.7%, transacting customers +22.7%, 22 net new stores added; 38 new international stores in H1 FY 2026-2027 vs 22 in H1 FY 2025-2026, on a base of 700 stores, so almost all international growth currently comes from same-store growth.
• International ASP is largely flattish — management attributed momentum to rapidly rising myopia rates in Southeast Asia and a global shift toward alternate D2C brands, and is not pursuing ASP raises internationally; market-creation journey has not yet started.
• Smart glasses demand exceeded expectations — initial launch around April 2026 (Q1 FY 2026-2027) via a sign-up list reaching a few hundred thousand users; available in 500 stores about 1–2 weeks before the call, with software/firmware releases roughly every 2 weeks.
• About 90% of smart glasses buyers purchase with prescription and an eye test — supporting management's thesis that smart glasses remain glasses first, with Lenskart's moat in distribution, prescription and post-order service.
• Management is not undercutting competitors on smart glasses pricing — sees itself as early in a multi-year journey and is explicitly not trying to over-accelerate; context: an analyst flagged aggressive smart-glasses pricing pushes across price points on e-commerce platforms.

Path to 25% Pre-Ind AS EBITDA — No Time Frame Given

• 25% pre-Ind AS EBITDA margin framed as a long-term possibility — management explicitly said "we will not put a time frame on 25%" and asked investors to read margins "over years, not quarters"; the framework rests on owning all seven profit pools "from factory to face".
• India product margin improved from 53.4% to 64% over the last 2–3 years — international from 75% to 77%; tailwinds include backward integration, rising make-in-India share and scale (volumes double what they were 4 years ago).
• FX is the key headwind — INR/RMB moved from ~Rs.11–12 a few quarters back to Rs.14.2 as of the call date, pressuring the India product margin line; raw material is largely imported. Mitigants: more Thailand capacity, increased stake in the China JV, and shifting more production to India.
• Natural hedge at group level — almost 40% of consolidated revenues come from non-INR countries; the India product margin line remains the exposed piece.
• In-house frames grew from 44 lakh units in FY23 to 78 lakh in FY26 (~20% CAGR) — Q2 FY 2026-2027 production +72% YoY; in-house lenses grew from 21 lakh (FY23) to 56 lakh (FY26), +52% YoY in Q2.
• Bhiwadi runs at 75% automation — fitting, QC and packaging still largely manual, the identified headroom; the Hyderabad facility, built for 50 million pairs a year under one roof, is around 12 months from commissioning (≈FY 2027-2028).
• India rents fell to 5.7% of revenue from 6.1% — Q2 FY 2026-2027, with SSG of 20.8% running well ahead of roughly 5% annual cost escalations; a large part of same-store growth flows through to profit given largely fixed store team and rent.

Drish AI Eye Test, Premiumization, Evolve Pilot

• Drish AI eye test framed as the next big unlock — remote optometry lets an optometrist do 2x more eye tests; management believes the AI model could enable 20 times more (period unspecified). CEO: "this is going to be a big breakthrough," but "there is still time before we perfect it."
• Drish is already live in pilot — a few stores as of Q2 FY 2026-2027, with more data feeding the SLM to train it to higher accuracy and optometrists increasingly reserved for complex cases; remote optometry enabled almost a store per day in tier-2+ locations in Q2 FY 2026-2027, now live in 934 stores vs 303 in Q2 FY 2025-2026.
• ASP uptick came from premiumization, not managed pricing — CEO said Lenskart does not manage ASP; the increase came from customers choosing more progressives and premium lenses (John Jacobs x Masaba, John Jacobs x Shantanu & Nikhil, newly launched Owndays lenses). No numeric ASP guidance was provided.
• Units per customer grew from 1.8 to 1.9 in Q2 FY 2026-2027 — cited as evidence that customers acquired via the new lens replacement campaign are high quality and repeating in cohort.
• Lenskart Evolve pilot launched about a month before the call — "very positive" first-month response but too early to draw conclusions; management explicitly said it is not an initiative to build higher-ASP stores and gave no store-count or ASP targets for FY 2027-2028 to FY 2028-2029.
• Progressive lens adoption supported by digitization — digitizing the traditionally manual "two-dot" fitting journey and using AI to streamline eye-test accuracy across the ecosystem, with more of the journey going digital in stores.

Volume First, No ASP Guidance, Long-Horizon Ambitions

• FY 2026-2027 India store addition guidance maintained — management continues to target delivering the same store additions as delivered in FY 2025-2026, while ensuring new stores expand access without diluting experience/NPS; expansion increasingly weighted toward tier-2 cities.
• Management declined to guide on realization per piece for the coming halves of FY 2026-2027 — the core priority is volume at both ends of the spectrum; analysts (Nomura's Mihir Shah) flagged a higher 2H FY 2025-2026 realization base, and management did not commit to an ASP trajectory.
• On GST base effects — asked whether the FY 2025-2026 GST cut shifted demand into Q3 FY 2025-2026 and inflated the H2 base relevant for H2 FY 2026-2027 estimates, management said quarterly numbers move with campaigns, mix and base effects, and redirected focus to the trailing 12-month volume number (~26% through Q2 FY 2026-2027).
• 2030 market outlook cited by management — "by 2030, 94 crore Indians will require glasses," and management says India needs at least 10,000+ Lenskart stores; CEO also cited "1 billion people who will need eye tests" (period unspecified) as the structural rationale for engineering the eye test.
• Customer base ambition — CEO said the company is "quite obsessed" with scaling from 30 million to 100 million customers (period unspecified), in line with its stated ambition to give vision to 1 billion people (period unspecified).
• US/Europe entry "too early" to commit — despite a healthy balance sheet, management said it is too early to commit to entering larger markets such as the US or Europe, or to choosing an organic vs. inorganic route; cash "gives us the room" but execution is "slowly earning us the right to use it judiciously."
• International margin trajectory unguided — management said product margin expansion is expected as India and international supply chains integrate and EBITDA "should come in line" as growth scales, but declined to guide to a specific number (period unspecified).