'Eye-Conic': Lenskart Gets Its Most Bullish Price Target As Macquarie Initiates Coverage — Details Inside

Macquarie has initiated coverage on Lenskart Solutions Ltd. with an ‘Outperform' rating, citing the company's vertically integrated supply chain, strong execution track record and significant headroom for market share gains in India and international markets.

In its initiation note titled 'Eye-conic Growth', the brokerage said Lenskart's end-to-end control over manufacturing, design and distribution gives it a clear competitive edge on cost, speed and efficiency in India's largely fragmented eyewear market. This positioning, Macquarie says, supports a strong medium-term growth and margin expansion outlook.

Macquarie has set a target price of Rs 530, valuing Lenskart at 49 times to operating EBITDA, in line with its valuation framework. That's the highest price target so far among the analysts tracked by Bloomberg.

Key catalysts include faster-than-expected margin expansion across India and overseas markets, stronger international execution and quicker adoption of smart glasses.

Growth And Profitability Outlook

The company is expected to add 450–600 stores annually across India, supported by a data-driven approach to site selection and a short store payback period of around 10 months. Macquarie expects Lenskart to deliver a sales CAGR of about 26% over FY25–FY28, driven by continued store expansion, improving store productivity and largely flat realisations.

Profitability is also set to improve sharply, according to the brokerage. Macquarie forecasts operating EBITDA to nearly triple over FY25–FY28, aided by operating leverage, rising scale and a higher share of in-house manufacturing. Manufacturing utilisation, currently at around 50%, is expected to improve as Lenskart replicates its India operating model in international markets.

Competitive Edge

Macquarie highlighted Lenskart's omni-channel model as a key differentiator, enabling customers to discover the brand online and complete purchases in physical stores, improving conversion and trust. Its vertically integrated, tech-enabled supply chain has also driven cost leadership, faster product innovation and superior store economics, the brokerage said.

Beyond FY28, Macquarie sees potential for 20%+ operating EBITDA growth, supported by continued market consolidation and the scalability of Lenskart's business model, which it compares to global eyewear leader EssilorLuxottica. The brokerage also flagged optional upside from the adoption of AI-powered devices such as smart glasses.

Lenskart currently holds an estimated 5% share of the Indian eyewear market, compared with 40%+ market share typically seen for category leaders in developed markets. The brokerage highlighted this gap as a key growth opportunity, noting that Lenskart's nearest competitor is estimated to be only one-fifth its size.

Aside from Macquarie, it's a mixed view from the brokerages. Jefferies has a 'buy' call on it, whereas Morgan Stanley maintains an 'Equalweight' stance, and Ambit Capital has a 'buy' call on the stock.