Shares of Lenskart Solutions Limited surged on Thursday, May 21 after the eyewear maker announced fourth quarter results for the fiscal year 2025-26.
Lenskart shares opened 6.19% up at Rs 517 apiece.The scrip was trading 1.49% higher by 9:45 a.m. The benchmark NSE Nifty 50 was up 0.49%.
On Wednesday, May 20, Peyush Bansal-led firm reported 8.5% drop in net profit for the January to March quarter for FY26 on an year-on-year basis, according to an exchange filing. The company posted a consolidated bottom-line of Rs 200 crore, compared to Rs 219 crore in the year-ago period. However, revenue from operations surged 45.6% to Rs 2,516 crore from Rs 1,728 crore in the corresponding quarter of the last fiscal.
Despite a profit decline, brokerages gave a positive review on the quarterly results citing margin gains and good performance in tier 2 and below cities. Jefferies maintained 'Buy' rating on Lenskart stock, while hiking the target price to Rs 600, marking a 23.2% upside from its previous closing price of Rs 486.85. Meanwhile, Morgan Stanley retained 'Overweight' coverage and raised target price to Rs 576, an upside of 18.3%.
Jefferies on Lenskart
- Maintain Buy and hiked target price to Rs 600.
- Lenskart delivered another standout quarter with strong growth and smart margin gains.
- Management commentary remains positive, with excessive focus on compounding growth.
- AI is touching all aspects of business, and Lenskart benefits from its control over the value chain.
Morgan Stanley on Lenskart
- Maintain Overweight with target price of Rs 576.
- Q4 results beat estimates, marking another strong quarter.
- Focus remains on sustaining growth.
- Annual volume growth of 25% is still the target.
- ASP growth in the past two quarters reflects a weaker base.
- Steady-state EBITDA margin target of 25% was reiterated.
- Sees store additions in FY27 similar to FY26.
- Small towns (Tier2 and below) have been performing well.
ALSO READ: Lenskart Q4 Net Profit Slips Even As Revenue Jumps Over 45%, Margins Expand
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