Lenskart net profit surges 125% to Rs 232 cr in Q2

BENGALURU: Eyewear retailer Lenskart reported a 125% year-on-year increase in its net profit to Rs 232 crore for the September quarter of FY27, compared with Rs 103 crore a year earlier, as higher eyewear sales and improved margins boosted earnings.Total income rose 36.2% to Rs 2,899 crore from Rs 2,129 crore in the year-ago quarter.Lenskart separately reported profit growth of 106% and revenue growth of 32.5% on a pro forma basis, which adjusts the previous year’s figures to account for acquisitions. These management-prepared comparisons have not been reviewed by auditors.The company’s India business recorded a 35.3% rise in revenue to Rs 1,668 crore, helped by higher sales volumes and growing demand for premium lenses. It sold 85.5 lakh eyewear units in India during the quarter, up 26.5% from a year earlier.The average selling price in India increased 6.9% to Rs 1,950, as more customers bought premium and progressive lenses. Sales at stores operational for at least a year grew 20.8%, compared with 14.8% in the corresponding quarter last year.Lenskart added 143 stores in India during the quarter, including 94 in tier-II and smaller markets, and entered 61 new cities. Its domestic network now spans 2,868 stores across 665 cities.The company also conducted 80 lakh eye tests globally during the quarter, an increase of 40.4%. Of these, 70 lakh were conducted in India, with more than half being first-time eye examinations.International revenue rose 29.5% to Rs 1,201 crore, supported by growth in Japan, Southeast Asia and the Middle East. Excluding currency movements, international revenue grew around 23%. The company added 22 stores overseas, taking its total global store count to 3,624.Lenskart’s operating profit, excluding the impact of lease accounting, increased 65% to Rs 392 crore. Its operating margin improved to 13.8% from 11.1% a year earlier.The company said greater in-house manufacturing helped protect margins despite the rupee’s depreciation against the Chinese yuan. Production of frames at its own facilities increased nearly 72%, while lens manufacturing grew 52%.In India, marketing expenditure declined to 4.5% of revenue from 5.4% a year earlier. However, the company said the reduction partly reflected the timing of spending and that it intended to increase investment in brand building.Lenskart is also expanding its manufacturing capacity, with a new Hyderabad facility designed to produce five crore pairs of eyewear annually expected to be ready in about a year.For the first half of FY27, the company reported revenue of Rs 5,559 crore and net profit of Rs 461 crore. It generated Rs 388 crore in operating cash flow during the period, against Rs 187 crore spent on store expansion, refurbishment and remote eye-testing facilities.You use AI every day. Now get your AI Quotient. Take the AIQ test.