Lenskart Delivers Strong Q3 With 74x Profit Growth, 38% Revenue Rise

The eyewear retailer Lenskart posted good financial results in the October-December quarter, fuelled by high growth in revenues and growing margins.

The Gurugram-based company posted a 38% year-on-year (YoY) rise in operating revenue to ₹2,308 crore, while its net profit jumped 74-fold to ₹133 crore, aided by a low base in the year-ago period. Lenskart, which went public last November, said the quarter marked a clear shift into a stronger profitability phase.

On the post-earnings call, founder and CEO Peyush Bansal said the company’s operating leverage thesis has begun playing out.

“In Q2, we said we are entering a compounding phase. Q3 validates that decisively. This is not cost-cutting. This is operating leverage. The compounding has begun,” Bansal told analysts.

How Did Lenskart Improve Margins So Sharply?

Lenskart’s total expenses grew 28% to ₹2,163 crore, slower than revenue growth, supporting margin expansion.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) expanded 90% YoY, while its operating margin improved to 20% from 14.5% in the year-ago quarter.

The performance also emphasised better operating efficiency, with incremental revenue adding a more significant contribution to the profit.

What Did Lenskart Reveal About Its Acquisitions?

Lenskart also provided unaudited pro forma figures, which indicated how its financial report would have been if its newly acquired businesses had been part of the business for the entire reporting period of the company. The acquisitions include:

• Dealskart, the master franchise operator for Indian retail outlets (acquired 31 December 2024)

• Meller, a Spanish eyewear firm (acquired 11 August 2025)

• GeoIQ, a machine learning platform (acquired 30 September 2025)

On a pro forma basis, revenue rose 37% YoY, while net profit more than tripled compared to the year-ago period.

How Is Lenskart Performing Overseas?

Lenskart currently operates in Southeast Asian markets such as Thailand and Singapore, as well as several Middle Eastern markets.

Its international operations are seeing faster profitability growth, helped by higher product margins and improving operating leverage.

The company’s overseas product margin expanded to 75.7% in the first nine months of FY26, compared to 70.8% in FY23, reflecting a 493-basis point improvement.

Store-level EBITDA margins across overseas markets now range from 20% to 35%, depending on the region's maturity.

Management said strong same-store sales growth is helping drive leverage both at the store and corporate levels.

However, despite stronger margins, the company said it remains focused on scaling the business rather than maximising near-term profitability. It is reinvesting gains into brand marketing, store expansion, and technology to strengthen its global position.

What Is Driving Growth In India?

The domestic business by Lenskart was also very strong. Same-store sales growth was 28% YoY, which was supported by ongoing customer demand.

The company recorded an increase of 169 new stores in the quarter between October and December of 2025, against 65 last year.

An increase in EBITDA margin to 20.8% up by 16.3% in the same quarter in 2024, was recorded.

The technology-led model increased the margin since fixed costs increase at a relatively slower rate than revenue when the scale increases. The company reported that its original investments in manufacturing, technology and brand building are now paying it a stable profitability.

What Does This Mean For Investors?

The outcome of the Q3 FY26 results by Lenskart points out that the company is in a stronger growth stage, and scale is turning into profitability at a quicker rate than previously.

To investors, operating leverage has significantly improved, with margins growing even at a time when investments were still being made in expansion. Moreover, the significant increase in EBITDA and operating margin indicates that the business model is becoming structurally more efficient.

However, investors should also note that management remains focused on aggressive scaling rather than short-term profit maximisation, so near-term earnings could fluctuate depending on how much the company reinvests in marketing, store openings, and international expansion.

Sources:

Economic Times

Money Control