Lenskart Solutions Ltd Q2 FY27 Results Analysis: PAT Surges 125%, EBITDA Margin Expands 221 bps
Lenskart Solutions Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,845.03 Cr (+35.73% YoY) and PAT growth of +124.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,845.03 Cr (+35.73% YoY) |
| PAT (Q2) | Rs. 232.45 Cr (+124.70% YoY) |
| EBITDA margin | 21.93% (+221 bps YoY) |
| EPS (Q2) | Rs. 1.31 (+114.75% YoY) |
Quarter Snapshot
Lenskart delivered 35.73% YoY revenue growth with PAT more than doubling (+124.70%) on operating leverage, while EBITDA margin expanded 221 bps YoY to 21.93% and the International segment's profitability inflection materialized (result +212.71% YoY). No prior management guidance numbers were exceeded in the source, so no beat is scored; the ~25% steady-state pre-IndAS margin target remains a multi-year trajectory at 13.74%. Watch items are the Rs.13.17 crore customs/HSN order, the deferred-tax-credit-supported 23.66% tax rate, and the 43.46% inventory build.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "revenue direction likely ahead YoY" on a favourable base | +35.73% YoY (+32.54% proforma) | Played out |
| Product margin | "flat to modestly compressing" on the derived INR-RMB cross | 69.98% vs Q1's 70.26% — flat QoQ, up 100 bps YoY — no compression evident | Partially |
| Customs order | "a one-off to watch rather than a run-rate margin item" | exceptional item nil; no provision in Q2 P&L | Played out |
| Middle East drag | "potential traffic drag" on international slice | International revenue held (+36.55% YoY); traffic not in filing — traffic | Not observable |
| Baofeng 51%→70% completion checkpoint | due ~30-Sep-2026 | completed post-period for Rs.10.83 Cr; now a 70% subsidiary | Played out |
| Watch items: store-add run-rate, SSSG/eye-test re-acceleration, international margin path, Hyderabad commissioning, customs appeal status | — | not addressed in the filing — remain open for the call | Carried forward |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA (pre-IndAS 116) margin ~25% steady-state ("We continue to believe in our target ~25% steady-state EBITDA (pre-IndAS 116) margin", reiterated on the Q1 FY27 update) | management commentary | 13.74% in Q2FY27 (13.53% H1) — open-ended target, trajectory rising | Too Early |
| Manufacturing capacity 3x over three years | Q2 FY26 earnings call | CWIP Rs.244.89 vs Rs.111.89 at March | On Track |
| IPO Rs.2,150 Cr fresh-issue deployment | monitoring agency report / filing note | Rs.529.71 utilised to 30-Sep-2026 | On Track |
| "Growth first, margin is a normal outcome" | repeated across Q4 FY26 / Q1 FY27 calls | EBITDA margin 21.93% (+221 bps YoY); pre-IndAS 13.74% | Confirmed |
| International profitability "the question mark is gone. What remains is scale" | management commentary after Q4 FY26 | International segment result Rs.97.22, +212.71% YoY, margin 8.09% vs 3.53% | Confirmed |
| Pre-IndAS margin runway "at 14% today with roughly another 10 percentage points of runway" | Q1 FY27 update | Q2FY27 at 13.74% consolidated — direction | Confirmed |
Key Investment Insights
Key Positives
- Revenue grew 35.73% YoY to Rs.2,845.03 crore (32.54% on proforma like-for-like base), with India +35.54% and International +36.55% YoY
- PAT grew 124.70% YoY to Rs.232.45 crore; EPS rose to Rs.1.31 from Rs.0.61 (+114.8% YoY)
- EBITDA margin expanded 221 bps YoY to 21.93%; pre-IndAS 116 margin rose to 13.74% from 13.30% QoQ
- India segment delivered a fifth straight quarter of result-margin expansion (10.24% to 12.50% YoY)
- International segment result grew 212.71% YoY to Rs.97.22 crore with margin rising from 3.53% to 8.09%
- Product margin held at 69.98%, up 100 bps YoY, with no visible RMB-driven compression
- H1 CFO of Rs.848.29 crore was 1.84x PAT; FCF of Rs.364.70 crore positive despite 58% YoY capex growth
- Net cash position of ~Rs.1,777.22 crore against total borrowings of only Rs.184.70 crore
Risk Factors
- Customs/HSN order reclassifying imported optical eyeframes carries differential duty plus penalty of Rs.13.17 crore plus unquantified interest; an upheld reclassification would structurally raise landed cost on imported frames
- Effective tax rate of 23.66% (vs 30.10% YoY) rests on a deferred-tax credit equal to 48% of total tax expense
- Inventories built 43.46% vs March to Rs.1,487.73 crore, a Rs.453.02 crore drag on operating cash flow
- International revenue was flat sequentially (-0.18% QoQ) and its result margin ticked down 53 bps QoQ
- Revenue QoQ growth moderated to +4.82% from Q1's +7.89%, aided by an easier year-ago base (GST-transition demand softening of September 2025)
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.