Lenskart Q4 FY26 Results Analysis: Revenue Surges 45.6%, International Segment Turns Profitable

LENSKART's Q4 FY26 numbers came in strong, with revenue of Rs. 88,140.40 Cr (+45.60% YoY) and PAT growth of +68.40% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Lenskart delivered strong Q4 FY26 with 45.6% YoY revenue growth and 21.3% EBITDA margin, demonstrating operating leverage with expenses growing slower than revenue. The International segment turned profitable (Rs.1,253 Mn PBT vs loss FY25) and India margins expanded 990 bps YoY to 12%. With 3.33x cash conversion, near-zero leverage (D/E 0.02x), and management's 25% margin target, the company shows strong execution quality.

Key Investment Insights

Key Positives

• Revenue grew 45.6% YoY to Rs.25,157 Cr in Q4, strongest quarterly growth in 4 quarters
• FY26 revenue grew 32.5% YoY to Rs.88,140 Cr, accelerating from 29.4% in 9M FY26
• EBITDA margin expanded 210 bps to 19.7% in FY26; Q4 margin reached 21.3%
• India segment PBT margin expanded from 2.1% to 12.0% YoY in Q4 (+990 bps)
• International segment turned profitable: Rs.1,253 Cr PBT vs Rs.228 Cr loss in FY25
• PAT grew 68.4% YoY to Rs.5,010 Cr in FY26
• Operating cash flow was 3.33x PAT at Rs.16,696 Cr
• Free cash flow positive at Rs.8,411 Cr despite Rs.8,285 Cr capex
• Debt/Equity improved from 0.06x to 0.02x post-IPO

Risk Factors

• PAT declined 7.5% YoY in Q4 to Rs.2,036 Cr due to base effect from one-time gains in Q4 FY25 and higher tax expenses
• Employee costs grew 48.2% YoY in FY26, faster than revenue growth of 32.5%
• Cash tax rate increased to 39.1% in FY26 from 26.6% in FY25 due to timing differences
• Q4 FY25 had Rs.1,672 Mn one-time fair value gain creating base effect comparison