Shares of Lenskart Solutions surged up to 5% in trading on 28 November 2025, following Jefferies’ initiation of coverage on the recently listed eyewear retailer with a ‘Buy’ rating and a Lenskart target price of INR 500, implying an upside potential of approximately 23% from Thursday’s close Lenskart share price of INR 407.70.
This development comes a day before Lenskart’s Q2 FY26 earnings, marking its first quarterly results since listing on Dalal Street earlier this month. The market’s upbeat response reflects growing optimism about Lenskart’s business fundamentals, scalability, and long-term growth prospects.
India’s Largest Tech-Driven Eyewear Retailer
According to Jefferies, Lenskart stands out as India’s largest tech-driven, vertically integrated eyewear retailer, holding roughly 5% market share in a highly fragmented INR 79,000 crore domestic market dominated by unorganised players. Despite its leadership, the company’s relatively small market share highlights substantial headroom for growth as the eyewear sector continues to formalise.
India’s eyewear market, estimated at USD 9 billion (~INR 80,539 crore) in FY25, is expanding at a 13% CAGR, driven by increasing refractive vision issues, longer screen exposure, pollution, and an ageing population. With organised retail penetration still below 25%, Jefferies believes Lenskart is poised to capture outsized gains as consumer behaviour shifts toward branded optical retail.
Vertically Integrated Omni-Channel Model: The Competitive Edge
Jefferies emphasised that Lenskart’s end-to-end control over design, manufacturing, logistics, and retail creates a high cost and efficiency advantage over traditional opticians. The company’s manufacturing hubs in India, Singapore, and Dubai, along with its automated supply chain, allow for faster fulfilment, including next-day delivery in over 40 Indian cities, and a 35–40% materials cost advantage compared to independent retailers.
Its omni-channel model, combining online platforms with an expanding store network exceeding 2,100 outlets, has enabled Lenskart to maintain a consistent customer experience and drive strong repeat purchases. More than 80% of new stores achieve payback within 10 months, while store-level EBITDA margins exceed 30%—among the highest in the Indian retail sector.
Lenskart Target Price: Financial Outlook
Jefferies forecasts Lenskart’s revenue to grow at a 24% CAGR between FY25 and FY28, primarily led by volume expansion and higher transaction frequency. Adjusted EBITDA is expected to expand at over 50% CAGR, with margin expansion of approximately 600 basis points, as operating leverage strengthens and international gross margins improve.
The brokerage also expects Earnings Per Share (EPS) to rise 44% annually during this period, underpinned by a net-cash balance sheet, improving return ratios, and strong free cash flow generation.
- Base Case: TP INR 500 (50x FY28e pre-Ind AS EBITDA)
- Bull Case: TP INR 560, assuming 26% revenue CAGR and 14% EBITDA margin
- Bear Case: TP INR 320, based on a slower 16% revenue CAGR and 12% EBITDA margin
India as Core Driver; International Expansion as Strategic Optionality
While India accounts for over 85% of EBITDA, Jefferies views Lenskart’s international business—spanning more than 10 countries—as a key strategic growth lever. Acquisitions such as Owndays in Asia and Meller in Europe enhance its presence in mature markets and open cross-market synergies.
Although global eyewear markets grow modestly at 3–7%, Jefferies believes market share gains and efficiency improvements will yield meaningful profit growth. The firm underscored that international operations, once viewed with scepticism, now present long-term margin expansion opportunities through scalability and integration.
Valuation Context and Risks
Jefferies acknowledged that Lenskart trades at a premium valuation, but argued this is justified given its market leadership, integrated model, and long runway for growth. The brokerage values the company at 50x FY28e pre-Ind AS EBITDA, consistent with global consumer-tech peers at similar growth trajectories.
However, it cautioned investors about potential risks, including:
- Rising competition from domestic and international eyewear brands;
- Technology-driven disruption, such as smart eyewear, and
- Execution challenges in maintaining margin stability amid aggressive expansion.
Investor Sentiment and Market Reaction
Lenskart’s shares, which debuted on 7 November 2025 at a 1.74% discount to the IPO price of INR 402, have since recovered and now trade about ~5% above listing levels, giving the company a market capitalisation of INR 75,000 crore.
Friday’s rally, following Jefferies’ report, underscores the market’s confidence in Lenskart’s growth story, despite its steep valuations. Investors are now focused on the Q2 FY26 earnings release on 29 November 2025, which will serve as an early test of whether the company can deliver on its post-IPO promises.
Conclusion
Jefferies’ initiation note places Lenskart among India’s most promising consumer-tech plays, underpinned by its strong fundamentals, scalable omni-channel operations, and leadership in an underpenetrated market.
While near-term volatility may persist due to valuation concerns and execution scrutiny, the brokerage’s conviction is clear: Lenskart’s integrated model, growth momentum, and operational discipline position it as a long-term compounder in India’s evolving retail landscape.
In Jefferies’ words, Lenskart’s “premium valuation should be viewed in the context of opportunity and leadership.”
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