Lenskart is poised to redefine the eyewear market in India, akin to Tanishq's impact on the jewellery sector, according to analysts at Elara Capital. The company has developed a comprehensive retail model that spans the entire eyewear value chain, setting it up for sustained market share growth.
Elara Capital's analysts, led by Amit Purohit, highlight Lenskart's robust business model as a key factor in their optimistic outlook. The company's revenue productivity stands at Rs 25,000-30,000 per square foot, with high gross margins driven by a private-label-led approach. Lenskart's stores have an industry-leading payback period of 10-12 months, and its ability to attract foot traffic is demonstrated by a 20% same-store sales growth.
Lenskart's differentiation in the vision care market is further bolstered by its full-stack retail infrastructure. The company conducts nearly 600 eye tests per store each month, aiming for 100 million tests over time. Its backward integration strategy enhances product control and inventory turnover, enabling next-day delivery in 78 cities.
International expansion and strategic acquisitions are also pivotal to Lenskart's growth strategy. The acquisitions of Owndays and Meller have expanded its market reach and design capabilities. In FY26, international operations contributed 42% of revenue, with the company now present in over 10 countries and operating more than 600 stores globally.
In the fourth quarter of FY26, Lenskart reported a 46% year-on-year increase in revenue to Rs 2,516 crore. However, net profit declined by 9% to Rs 200 crore. For the full financial year, revenue rose by 32% to Rs 9,002 crore, with EBITDA up 55.3% and adjusted PAT surging 148% to Rs 530 crore.
Background
Lenskart's growth trajectory is drawing parallels to Tanishq, a leader in the jewellery segment, due to its innovative business model and strategic market positioning. The company's focus on technology and customer experience has set it apart in the competitive eyewear market.
Looking ahead, Lenskart's strategic initiatives and market positioning suggest a promising trajectory. Analysts and investors will be keenly watching its continued expansion and profitability metrics as it aims to solidify its leadership in the eyewear industry.
