Summary
Lenskart Solutions Limited - Q3 FY26 Earnings Call Summary Wednesday, February 11, 2026, 5:00 PM IST
Event Participants
Executives 3 Abhishek Gupta (CFO), Nikunj Mall (Head of IR), Peyush Bansal (Co-Founder & CEO)
Analysts 8 Aditya Bansal (Motilal Oswal), Amit Sachdeva (UBS), Ashish Kanodia (Citi), Avi Mehta (Macquarie), Devanshu Bansal (Emkay Global), Garima Mishra (Kotak Securities), Percy (IIFL), Sheila Rathi (Morgan Stanley), Tejas Shah (Avendus Spark), Vivek M (Jefferies)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹2,308 crores | +37% YoY; Strongest quarter as a public company driven by 32% volume growth in India. |
| EBITDA (Post-Rent/Pre-Ind AS) | ₹265 crores | +200% YoY; Margin reached 11.5% globally. |
| Reported EBITDA | ₹462 crores | +90% YoY; Margin expanded +550 bps to 20%+, crossing the threshold for the first time. |
| Profit After Tax (PAT) | ₹133 crores | +200% YoY; 9M FY26 PAT reached ₹326 crores vs ₹137 crores in 9M FY25. |
| India Revenue | ₹1,805 crores* | +40% YoY; Driven by record 28% SSSG and volume expansion. |
| International Revenue | ₹503 crores* | +32.7% YoY (+24% Constant Currency); Accelerated growth from H1. |
| India EBITDA Margin (Pre-Ind AS) | 14.9% | +490 bps YoY; Structural efficiency in marketing (-70 bps) and operating leverage. |
| International EBITDA Margin (Pre-Ind AS) | 6.4% | Significant improvement from -3.6% in Q3 FY25; structurally higher product margins (75.7%). |
| Total Store Count | 3,144 stores | 2,439 in India (added 169 in Q3) and 705 International. |
| Eye Tests Conducted | 6.3 million | +54% YoY; 49% were first-time eye exams, expanding the addressable market. |
| Cash Balance | ₹3,978 crores | Includes IPO proceeds; CFO noted operations/cash flows funded all store and plant expansion. |
*Calculated based on segment growth/mix provided in transcript.
Geographic & Segment Commentary
- India Business: Delivered record 28% SSSG and 40% revenue growth, primarily volume-driven (eyewear units +32% YoY). Expansion is focused on a “neighborhood network” model rather than destination stores, with Tier-2+ stores performing best at ₹13.2 lakhs average monthly revenue. Remote optometry has scaled to 369 stores, enabling high-quality exams in remote areas using AI and tech.
- International Business: Segment is tracking ahead of India’s historical trajectory, achieving 6.1% 9M EBITDA margin compared to India’s 0.3% at a similar store scale. Singapore and UAE are leading mature markets, while Thailand and Saudi Arabia remain in the investment phase. Strategy involves replicating the Singapore “number one” playbook across Japan and Southeast Asia.
- Manufacturing & Supply Chain: Investing ₹267 crores in manufacturing, including a new Hyderabad facility and frame manufacturing in Thailand to derisk the China supply chain. Thailand serves as a regional hub for Southeast Asia, benefiting from a tax treaty with India for component and knowledge transfer.
Company-Specific & Strategic Commentary
- AI & Remote Optometry: Scaled remote optometry tests by 330% YoY, utilizing a proprietary AI layer to record and analyze prescription movements. This technology allows a single optometrist in a metro to conduct precise exams in remote villages, lowering the cost of market expansion.
- “B by Lenskart” (Smart Glasses): Scheduled for soft launch in Q4 FY26, featuring photo/video capture and AI chat capabilities. Management views this as a transition from an eyewear company to an “Intelligence” company, leveraging their 3,100+ store network for distribution and prescription lens fitting.
- House of Brands (Meller): The fashion sunglass brand grew 42% YoY in 9M FY26. Management noted the brand went out of stock within weeks of the India launch, confirming the ability of the Lenskart platform to scale sub-brands globally at fractional costs.
- Gold Membership & CRM: Active Gold members exceeded 8 million, with 37% of Q3 sales coming from repeat members. AI-enabled personalized CRM is replacing linear messaging to reduce churn and increase purchase frequency.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Smart Glasses (B by Lenskart) | Soft launch Q4 FY26 | Version 1 will focus on user learning/iteration; no material revenue contribution expected in the near term. |
| Long-term Market Size | ₹4 lakh crores by FY45 | Management aims to capture massive unorganized-to-organized shift (currently serving <5% of India’s 500M unit need). |
| Product Margins (India) | Upward Trend (Mid-term) | Gains expected from shifting frame production from China/Thailand to India and higher premium lens mix. |
Risks & Constraints
| Risk | Context |
|---|---|
| Execution at Scale | CEO highlighted the risk of stretching too thin; mitigation includes investing in AI for hiring, store location prediction, and centralized supply chains to maintain 80.9 NPS. |
| Currency Volatility | Exposure to Rupee/RMB depreciation for frame imports; naturally hedged by JPY/SGD earnings, but full mitigation depends on scaling the Hyderabad facility. |
| Cannibalization | Rapid store expansion (169 in Q3) carries risk; managed via “GeoIQ” location intelligence which predicts revenue and nearby impact before signing rent agreements. |
Q&A Highlights
Top-of-Funnel Conversion
- Question: Why is eye test growth (60%) higher than volume growth (31%)? (Mihir Shah)
- Answer: In India, Lenskart is opening the top of the funnel with first-time testers who have never had correction; these cohorts often take longer to digest the need before purchasing, which is a positive sign of market creation. (Peyush Bansal)
Pricing vs. Mix
- Question: Did the GST reduction from 12% to 5% impact growth? (Avi Mehta)
- Answer: Growth was volume and eye-test driven, not a “GST story.” Full benefits were passed to customers. 7% ASP growth was driven by 38% mix shift to Owndays premium lenses and Progressives, not price hikes. (Peyush Bansal/Abhishek Gupta)
Smart Glasses Strategy
- Question: How will Lenskart compete with tech giants like Meta in smart glasses? (Vivek M)
- Answer: Tech companies lack physical distribution for prescription fitting; Lenskart’s 3,144 stores and optometry network are unique “last-mile” moats for wearable tech. (Peyush Bansal)
Supply Chain Derisking
- Question: Why invest in Thailand frame manufacturing instead of just India? (Sheila Rathi)
- Answer: Thailand derisks the China supply chain and acts as a regional hub for SE Asia; tax treaties allow seamless component transfer to India to build the local ecosystem. (Peyush Bansal)
Key Takeaway
Lenskart delivered a landmark Q3 FY26, characterized by a 37% revenue jump to ₹2,308 crores and a tripling of PAT to ₹133 crores. The quarter was defined by an “atoms to algorithms” transition, with AI-driven remote optometry fueling a 60% surge in India eye tests and record 28% SSSG. Management successfully crossed the 20% EBITDA margin threshold, demonstrating high operating leverage as marketing and employee costs declined as a percentage of revenue. Strategically, the company is diversifying its manufacturing base to Thailand and India to hedge currency risks and is pivoting toward “wearable intelligence” with the upcoming launch of “B by Lenskart” smart glasses. With 49% of tests conducted for first-time users, Lenskart continues to expand the total addressable market rather than just competing for existing share, positioning itself for sustained compounding as it scales toward a 3,000+ store network in India.
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