Shares of Lenskart surged over 6 per cent before settling with modest gains on Thursday even as the eyewear company reported a decline in fourth-quarter profit, with investors cheering robust revenue growth, aggressive store expansion and strong management commentary on future growth.

The stock ended 2.39 per cent positive at ₹498.50 after hitting an intraday high of ₹517, compared to the previous close of ₹486.85.

The eyewear maker reported a 7.5 per cent y-o-y decline in consolidated profit after tax to ₹203.6 crore for the quarter ended March 31, 2026, compared to ₹220.1 crore in the year-ago period, mainly due to higher expenses on components and inventories.

However, revenue from operations jumped 45.62 per cent y-o-y to around ₹2,516 crore in Q4FY26 from ₹1,728 crore a year earlier, reflecting strong demand, premiumisation and rapid store additions.

The company said India average selling price rose 15.9 per cent y-o-y to ₹1,865 in the March quarter, driven by a shift towards premium offerings such as progressive and Owndays lenses.

Lenskart accelerated store expansion during FY26, adding 542 net new stores in India, nearly double compared to FY25, with a sharp focus on Tier-2 and smaller markets. Same pincode sales growth of 31.1 per cent outpaced same store sales growth of 24.2 per cent in Q4FY26, indicating incremental demand from store densification.

The company also highlighted its growing focus on artificial intelligence across operations, including remote optometry, robotics-led manufacturing and AI-powered product innovation. Its newly launched AI-enabled smart glasses under the “B by Lenskart” brand, integrated with Google Gemini, already have over 30,000 customers on the waitlist.

Lenskart further announced plans to invest around ₹53 crore to increase its stake in overseas subsidiaries Owndays and Lenskart Singapore. The company will acquire an additional 1 per cent stake in Japanese arm Owndays for about ₹50 crore, taking its indirect ownership to around 97.67 per cent.

Global brokerage Jefferies maintained a buy rating on the stock and raised its target price to ₹600, saying Lenskart delivered another standout quarter with strong growth and margin improvement. The brokerage said AI integration across the value chain and control over manufacturing continue to strengthen the company’s competitive positioning.

Morgan Stanley maintained an overweight rating with a target price of ₹576, saying Q4 results beat estimates and reflected another strong quarter. The brokerage said Lenskart remains focused on sustaining growth, while reiterating its long-term EBITDA margin target of around 25 per cent.

Published on May 21, 2026