Lenskart share price jumps over 5% on strong Q2 results; Jefferies sees target at ₹500, initiates with ‘buy’

Lenskart Solutions share price: Shares of Lenskart Solutions surged over 5% in intra-day trade on Monday, December 1, after strong Q2 results and initiation of coverage by global brokerage Jefferies. Jefferies assigned a ‘Buy’ rating with a target price of ₹500, signalling a potential 23% upside from current levels. The brokerage said Lenskart’s unique structure, multi-channel operating model and measured expansion strategy create strong visibility for sustained earnings growth.Jefferies highlighted the company’s low penetration in a large and under-served market. In its report, the brokerage noted, “Lenskart, India’s largest tech-driven eyewear retailer, holds just 5% market share, offering strong growth potential.” Despite being the dominant organised player, the eyewear chain still commands a small share of India’s fast-growing optical segment, giving it a long runway for scale.Lenskart Q2 ResultsLenskart delivered a healthy performance in the July–September quarter, further reinforcing investor sentiment. Net profit rose 19.7% year-on-year to ₹102.2 crore, compared with ₹85.4 crore in the same period last year. Sequentially, profit surged 70.3%, sharply higher than the ₹60 crore reported in Q1 FY26. The company also reported no exceptional losses this quarter, compared with ₹10.4 crore in Q1.Revenue grew 20.8% year-on-year to ₹2,096 crore, up from ₹1,735.6 crore in Q2 FY25. Sequentially, revenue increased 10.6%, rising from ₹1,894.4 crore in the previous quarter. The company attributed the revenue expansion to higher demand across both online and offline channels.Jefferies on LenskartJefferies believes Lenskart’s hybrid operating structure—covering online sales, retail stores and in-house manufacturing—plays a major role in boosting margins and improving customer experience. This integrated model helps the retailer control costs, reduce delivery time and maintain consistency in customer engagement across markets.The brokerage also observed that more than 85% of Lenskart’s operating profit still comes from India, reinforcing the domestic market’s importance as the company’s strongest growth engine. With eyewear usage increasing steadily across urban and semi-urban regions, analysts see Lenskart benefiting from both lifestyle adoption and rising discretionary spending.Lenskart’s international footprint now spans more than ten countries. Much of this global push has been fuelled by a mix of organic expansion and strategic acquisitions, including Owndays in Asia and Stellio/Meller in Europe. While global markets grow at a modest 3–7%, Jefferies believes Lenskart can capture higher market shares due to its efficient supply chain and differentiated cost structure.The brokerage addressed investor concerns around overseas expansion, stating, “While investors often view the international foray with skepticism given the track record of Indian firms, we see a strategic rationale for Lenskart.” It expects international margins to improve as the company integrates its systems and builds operational efficiency across regions.Financially, the brokerage projects a strong multi-year performance. Jefferies expects Lenskart’s revenue to grow at around 24% between FY25 and FY28, driven by higher transaction volumes and repeat purchases. It also estimates that adjusted EBITDA will grow at 50%+ CAGR during the same period, supported by operating leverage and improved gross margins. The report adds, “Attractive unit economics and fast paybacks should drive 50%+ adj. EBITDA CAGR FY25–28E.”Earnings Per Share (EPS) are expected to grow at nearly 44% annually, with the company maintaining a net-cash balance sheet through the period.Lenskart Stock PerformanceIn Monday’s session, the stock climbed as much as 5.1% to hit an intra-day high of ₹432.35. Lenskart was listed on November 10, 2025, debuting at ₹395 per share, a 3% discount to its issue price of ₹403. With the latest surge, the stock now trades a little over 7% above its issue price.Lenskart’s combination of strong financials, aggressive yet disciplined expansion and solid backing from global brokerages appears to be lifting investor confidence as the company enters its next phase of growth.Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.