Lenskart Q2 FY27 profit jumps 2.3X as revenue rises 36%

By Olivia Hart

Lenskart's consolidated revenue from operations rose 36% year over year to Rs 2,845 crore in Q2 FY27, while net profit reached Rs 232 crore, 2.3 times the year-ago level. Revenue also increased 5% from Rs 2,714 crore in Q1 FY27.

Revenue from operations stood at Rs 2,096 crore in the year-ago quarter, according to Lenskart's financial statements sourced from NSE. The year-on-year increase amounted to Rs 749 crore, while net profit rose by Rs 129 crore from Rs 103 crore.

Profit therefore expanded faster than sales, with the Rs 129 crore gain equal to about 125% growth. The sequential revenue gain was Rs 131 crore, but the results did not provide a comparable Q1 FY27 net profit.

What powered the 36% revenue increase?

Lenskart's India business generated Rs 1,668 crore, up 35.5% year over year in Q2 FY27. International revenue rose 36.5% to Rs 1,201 crore, leaving the two markets with nearly identical growth rates. The growth-rate gap was only one percentage point.

On the reported numbers, international revenue was Rs 467 crore below India's, putting overseas operations at about 72% of the domestic figure. The two business figures add to Rs 2,869 crore, Rs 24 crore above consolidated revenue, and the Q2 FY27 results do not explain that difference.

Neither business line disclosed unit volumes, pricing or a country breakdown. The figures therefore cannot show whether overseas growth came from new outlets, higher prices or stronger demand at existing stores. In plain terms, growth was broad-based rather than dependent on one market.

What happened to costs and margins?

Cost of materials remained Lenskart's largest expense, accounting for 33% of total expenditure. It rose 31% year over year to Rs 854 crore, while employee benefit expense increased 25% to Rs 627 crore from Rs 503 crore. Materials spending exceeded employee costs by Rs 227 crore.

Finance costs and depreciation were the other major expense heads, although the results gave no standalone amounts for either. Total expenses climbed 22% to Rs 2,597 crore, well below the 36% pace of revenue growth.

Together, materials and employee benefits totaled Rs 1,481 crore, or about 57% of total expenses. Their growth rates exceeded overall expense growth by nine and three percentage points, respectively.

That gap helped net profit more than double to Rs 232 crore from Rs 103 crore. EBITDA rose 50% to Rs 622 crore, and the EBITDA margin reached 21.86%. That margin equaled Rs 21.86 of EBITDA for every Rs 100 of revenue.

Based on reported figures, net profit equaled about 8.15% of revenue, or roughly Rs 8.15 per Rs 100 of sales. The results did not provide standalone finance cost, depreciation, tax or other income figures.

Revenue exceeded total expenses by Rs 248 crore in Q2 FY27. That arithmetic spread was Rs 16 crore above reported net profit, underscoring why missing tax and other-income lines prevent a clean operating-to-net-profit reconciliation.

The results also did not provide standalone finance cost and depreciation figures. That leaves the full bridge from Rs 622 crore of EBITDA to Rs 232 crore of net profit unexplained in Lenskart's cited financial-statement summary. In plain terms, faster revenue growth widened margins despite heavier operating costs.

What did the market assign?

At the end of the trading session, Lenskart shares closed at Rs 689.7. That price gave the eyewear company a market capitalization of Rs 1,19,960 crore, or $12.6 billion.

The results did not disclose the day's share-price move, the previous close or a valuation multiple for peer comparison. Without those figures, the market reaction cannot be separated from the company's longer-term valuation.

The reported market value therefore reflects investor expectations, but the cited data do not establish how much depends on durable unit growth or margin expansion. In short, the closing valuation was substantial, but the evidence for its durability remains thin.

What do the results leave unanswered?

The Q2 FY27 results contain no management commentary, no executive quotation and no forward guidance. They also omit store openings and closures, same-store sales, average ticket size, product mix and country-level detail for the international business.

Operating cash flow and capital expenditure are also absent, limiting any assessment of how much cash the business generated or required for growth. The cited summary also omits gross margin, inventory, receivables and debt.

The missing data limit specific tests of earnings quality. Same-store sales and store counts would separate footprint growth from productivity; country data would show overseas concentration; cash flow and capital spending would show whether growth was self-funded. The headline growth rate cannot be translated into a comparable productivity measure without those disclosures.

The absence of guidance leaves no company benchmark for whether the 21.86% EBITDA margin should persist. The next update should show whether Lenskart can sustain that margin while containing materials and employee costs, which grew faster than total expenses.