Lenskart’s Profitability Rises as Store Network Expands

As Lenskart increases its retail presence, its rate of profit growth improves. In Q2 FY 2027, the company opened a net of 143 new stores across India and entered 61 new cities while continuing to invest in production capacity improvements.

The company’s revenue increased by 32.5% year-on-year and net profit doubled to Rs 232 crore, up from Rs 113 crore a year earlier. The faster increase in operating profit indicates that Lenskart is becoming more efficient in terms of operating its business as it becomes larger, this is supported by an improvement in the operation of existing stores.

Revenue vs profitability growth

Metric	Q2 FY26	Q2 FY27	Growth
Revenue	Rs.2,147 cr	Rs.2,845 cr	32.5%
EBITDA	Rs.237 cr	Rs.392 cr	65.0%
EBITDA margin	11.1%	13.8%	+2.7 pp
Net profit	Rs.113 cr	Rs.232 cr	2.1x

Existing Stores Drive Growth

The boost in profitability achieved by Lenskart can be attributed primarily to the enhanced performance of its existing retail locations.

The same-store sales growth in India during the second quarter of FY27 increased to 20.8% compared to the same period in previous fiscal, where the sales growth was 14.8%. Lenskart’s revenue in India grew by 35.3% to Rs. 1668 crores, backed by 26.5% increase in eyewear volumes and increase in demand for high-end lenses.

Lenskart opened 94 stores in Tier 2 and smaller towns which gives competitive advantage in the market. The new stores need a lot of initial investments for rent, staff, and infrastructure while existing stores generate higher revenue without much increase in operating costs.

As per the Q2 results presentation, the employee cost as a percentage of India revenues came down from 19.3 % a year back to 18%. Hence, revenue is increasing faster than the employee costs involved in the business.

 Manufacturing Strengthens Margins

Another significant factor in this case is the company’s control of its manufacturing and distribution systems. While retailers rely heavily on third-party suppliers, Lenskart runs a complete and integrated model that includes eyewear design and production, branding, and retailing.

As a result, the company has better control of costs, inventory, and quality. In Q2, the consolidated product margin was 70 percent compared to 69.2 percent previously, despite depreciation of the rupee. The agent recorded a 71.7 percent increase in in-house frame production year-on-year, while lens production increased by 52.2 percent.

This is important because the larger the volume of in-house production, the smaller the dependence on third-party producers, which gives the company more control of procurement and production costs.

International Business Turns Profitable

International operations are becoming another factor in earnings growth for Lenskart. During the quarter, international sales grew 29.5% to Rs.1,201 crore, with eyewear volumes increasing by 29.7%. However, the bigger event was the rise in operating profitability. It was the second consecutive quarter already when international EBITDA margins stayed above 10%.

The department added 22 net new stores during the reported quarter, with a net international portfolio reaching 756 stores, according to the company’s earnings presentation. This is highly significant from the perspective of international expansion since at the earlier stages this process can negatively influence profitability as companies invest in entering foreign markets and developing their retail networks.

Technology Improves Efficiency

Technology is also playing a growing role in Lenskart’s cost structure. The company has expanded remote optometry services to 934 stores, compared with 303 a year ago. This allows it to extend access to eye testing across its retail network.

It is also deploying AI across customer service, employee training, inventory planning and manufacturing. For a retailer operating thousands of stores, inventory management is particularly important. Better demand forecasting and allocation can help ensure that the right frames reach the right stores, reducing inefficiencies and improving product availability.

Lenskart conducted 80 lakh eye tests globally during the quarter, up 40.4% year-on-year. Its Lenskart Gold membership in India also crossed one crore active members. These initiatives help the company increase customer engagement while using its existing retail and technology infrastructure more efficiently.

Can Profitability Sustain?

Lenskart’s Q2 performance highlights a shift in its growth model. The company is no longer relying solely on expanding its store network to increase revenue. It is increasingly extracting greater productivity from existing stores, improving manufacturing efficiencies and building scale across international markets.

The distinction is important. Store expansion can drive revenue growth, but sustained profitability depends on how efficiently each store, manufacturing facility and distribution network operates. However, maintaining this trajectory will depend on how quickly new stores mature, whether international margins continue to improve and how effectively the company manages the costs of its next phase of expansion.