Lenskart Solutions Ltd Q4 FY26 Earnings Call: Revenue Surges 41% to Rs. 2,516 Cr, EBITDA Jumps 61% YoY

Lenskart Solutions Ltd held its Q4 FY26 earnings call on May 20, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Revenue, Margin Expansion & Cash Generation

• Q4 FY26 revenue of Rs.2,516 Cr— grew 41% YoY, with EBITDA up 61% YoY and margin expanding to 21.3%.
• Pre-Ind AS EBITDA nearly doubled to Rs.322 Cr— margin of 12.8% for the quarter; PAT stood at Rs.204 Cr.
• Full-year FY26 milestones— Rs.1,700 Cr EBITDA, Rs.1,000 Cr pre-Ind AS EBITDA, and Rs.530 Cr PAT.
• Operating cash flow of Rs.887 Cr— equivalent to 91% of reported EBITDA, funding 603 net new stores and manufacturing investments.
• Closing net cash of Rs.3,881 Cr— excluding IPO payables; ROCE (ex-undeployed IPO proceeds) at 23%, a 9 pp expansion over FY25.
• Pro forma basis used for like-to-like comparison— treating acquisitions (Dealskart, Meller, GOIQ) as if always part of Lenskart; Q4 FY26 pro forma and reported figures are identical.

44% Revenue Growth, Expanding Margins & Record NPS

• India Q4 FY26 revenue of Rs.1,475 Cr— up 44% YoY; pre-Ind AS EBITDA margin of 15.3%, expanding 6 pp YoY from 9%.
• 7.9M eyewear units sold in India— up 24.3% YoY, driven by a 50% increase in eye tests to 6 million; half of all tests were first-time exams.
• Same-store sales growth of 24%— same-pin-code sales grew 31%; NPS reached an all-time high of 81.4 in Q4 FY26.
• 170 net new stores added in Q4— 542 for the full year, ending India store count at 2,609; remote optometry stores expanded 3.7x to 623.
• Gold active members at 8.8M— up 29.5% YoY; product margin held at 64% despite rupee depreciation, supported by localised frame manufacturing.
• First-year monthly store revenues of Rs.16-17 lakhs in smaller towns— management noted Tier 2+ opportunity is larger than initially expected.

Revenue +35% YoY, Margin Expansion of 3.4 pp for Full Year

• Q4 FY26 international revenue of Rs.1,054 Cr— up 35.4% YoY (25% in constant currency), with EBITDA margin of 9.2% vs 8.1% a year ago.
• Full-year FY26 international EBITDA margin of 7%— up from 3.6% in FY25, a 3.4 pp expansion; eyewear units grew 29% YoY in Q4.
• 718 international stores— 13 net adds in Q4 and 61 for the full year; growth was largely same-store led at 35%.
• KSA not yet break-even— but management described it as "far ahead" of where the UAE was at a similar point, and remains "bullish" with continued store openings planned for FY27.
• International margin already exceeds India at comparable store count— at 718 stores, International pre-Ind-AS EBITDA margin of 7% compares with India's 0.3% in FY23 at a similar scale.
• International margin aided by integration and ACP reduction— driven by scale in Singapore, Dubai, and Japan.

28% 3-Year Revenue CAGR; AI-First Model as Primary Growth Engine

• 3-year (FY24-FY26) revenue CAGR of 28%— reaching Rs.9,000+ Cr in FY26; pre-Ind-AS EBITDA nearly doubled annually to Rs.1,000+ Cr.
• India 3-year revenue CAGR of 30%— pre-Ind-AS EBITDA grew at a 92% CAGR from Rs.203 Cr to Rs.753 Cr; margin expanded from 6.5% to 14.3%.
• Management sees ~10 pp further runway to ~25% steady-state margin— long-term pre-Ind-AS EBITDA target for India remains ~25%, with quarterly variation from seasonality and investment phasing.
• FY27 priorities include AI-first operating model— scaling to 100 million customers, deeper vertical integration aiming for near-full factory automation (from 75%), and evolving 3,300+ stores into multi-role community hubs.
• Net new store additions in FY27 expected around FY26 levels— management recommends trailing 12-month volume growth as the cleanest measure of underlying market expansion.
• Smart glasses investment ongoing— 30,000+ waitlist for B by Lenskart; CEO Piyush Bansal described the space as "very early" with no near-term sales focus.

Tier 2+ Opportunity Larger Than Expected; Data-Driven Micro-Market Fill

• Over 200 Tier-2 stores added— time period unspecified; management indicated the initial 4,500 store target is "conservative".
• Management estimates total eyewear store market in India at 60,000–70,000— with potential demand for an additional 70,000–80,000 stores (long-term, period unspecified).
• India strategy targets 10-minute travel time radius— using data science and cannibalization modeling to add stores in micro-markets; cannibalization risk mitigated by bottom-up mobility data analysis.
• Same-store sales growth over FY26 driven by stores in pin codes with multiple Lenskart outlets— management stated that implied volume growth of 10% from the ~25% SSG value is incorrect; volume growth is "meaningfully higher".
• Metro iTest volumes growing 45%+ in Q4 FY26— demonstrating continued strong demand in large cities alongside Tier 2 expansion.
• Next-day delivery expanded to 78 cities— same-day delivery experiments ongoing in Singapore and piloted in select Indian markets in FY27; no specific target set (period unspecified).

Geopolitical Resilience, Currency Headwinds, Meller Surge

• No material impact from geopolitical tensions on supply chain or demand— management cited the eyewear category as non-discretionary and resilient; even Middle East disturbances caused only a temporary dip.
• Currency (rupee depreciation) is the biggest headwind— 42% international business and vertical integration (Hyderabad plant, Thailand JV) provide structural offsets.
• India gross margins structurally improved from ~61% to 64% over three years— but flat at 64% in FY26 as currency headwinds offset gains from vertical integration; Hyderabad plant expected to provide further margin visibility.
• Meller launched across 1,000+ stores in India, Middle East, and SE Asia— demand exceeds expectations and is running out of stock, partly driven by organic viral exposure from a Korean pop star; Japan launch planned (period unspecified).
• Management aims to build Meller as the next "Gentle Monster" for Gen Z— the immediate operational challenge for FY27 is managing a sudden surge in volume demand.
• iTest growing at ~50% vs volume growth of ~25% (periods unspecified)— creating an opportunity to improve conversion post-iTest; management reiterated FY27 focus on opening mass demand (Hustler campaign) while driving upgrades (Onde, Smeller, Progressives).