Eyewear retailer Lenskart has reported a net profit of Rs 61.2 crore for the quarter ended June 30, 2025 (Q1 FY26), reversing a loss of around Rs 10.9 crore in the same quarter last year.
Key Financial Highlights
- Revenue from operations rose to Rs 1,894.5 crore, up 24.6 % YoY, from Rs 1,520.4 crore in Q1 FY25.
- The profit before tax stood at Rs 75.9 crore, compared to a loss of about Rs 12.4 crore in Q1 FY25.
- Operating leverage improved: EBITDA rose to Rs 336.6 crore in Q1 FY26 (versus Rs 183.4 crore in Q1 FY25).
What’s Driving the Improvement
- Lenskart’s store network expansion, both offline and online, helped growth in the India business (India revenue ~Rs 1,169.2 crore vs ~Rs 936 crore a year earlier).
- International segment (Middle East + Southeast Asia) contributed ~Rs 736.5 crore, up from Rs 584.4 crore in Q1 FY25. Moneycontrol
- Cost discipline and higher productivity of new stores helped the margin recovery.
Why This Is Significant
- The turnaround from a loss to profit signals that Lenskart is now executing well on its growth and efficiency plans.
- With the company preparing to list via an IPO (ahead of which it disclosed this performance), the strong Q1 result adds credibility to its listing story.
- The shift reflects maturity in the eyewear market in India + overseas, and the benefit of omnichannel reach.
Risks & Things to Watch
- While Q1 is strong, sustaining such profitability through the year will depend on maintaining growth, controlling costs, and competition from other players.
- Retail challenges: retail real-estate costs, consumer spend variability, and supply chain risks (especially for international operations) remain.
- IPO pricing expectations: Given the strong numbers, market expectations may be high; how the stock (once listed) performs will be crucial.
- External environment: Consumer sentiment, inflation, and global supply issues could impact margin and growth trajectories.
Outlook
Lenskart has set a strong foundation with this Q1 result. The key will be:
- Whether growth stays above 20 – 25 % for the full year.
- Whether margin improvement continues, especially as the company scales overseas and offline stores.
- How the company uses its IPO proceeds (store expansion, technology, international expansion) and delivers on those promises.
