Lenskart Outlines Roadmap for 25% EBITDA Margin, Says Growth Will Take Priority

Eyewear retailer Lenskart Solutions has outlined a long-term plan to achieve an EBITDA margin of around 25%, but the company is not treating that figure as an immediate target. Instead, it plans to prioritise customer acquisition, store expansion, manufacturing capacity and technology investments, even if those decisions affect profitability in the short term. The strategy centres on controlling more of the eyewear value chain, from product design and manufacturing to distribution and retail.

The roadmap comes as Lenskart reports strong financial growth. For the July-September quarter of FY27, revenue increased 32.5% year-on-year to ₹2,845 crore, while profit after tax more than doubled to approximately ₹232 crore. EBITDA rose 65% to ₹392 crore, taking the EBITDA margin to 13.8%. The company believes that greater scale, automation, in-house capabilities and repeat purchases can gradually improve its operating economics.

Lenskart’s 25% EBITDA Margin Is a Long-Term Goal

In its shareholder communication and subsequent discussions, Lenskart has reiterated its ambition to reach a steady-state EBITDA margin of approximately 25%. The company has clarified that this is a long-term expectation rather than a near-term financial commitment.

The distinction matters because Lenskart is continuing to invest in areas that could increase expenses before generating their full financial benefits. These include opening stores, expanding manufacturing capabilities, improving supply chains, developing technology and attracting more customers into the eyewear category.

The company’s previously stated long-term margin expectation is based on EBITDA before the impact of Ind AS 116, the accounting standard governing leases. This basis should be kept in mind when comparing the target with reported quarterly margins, which can be affected by accounting treatment.

Lenskart’s management believes profitability can improve as its business grows because the company controls several stages of the customer and product journey. Instead of relying entirely on outside suppliers and retail partners, it manufactures products, develops its own brands, operates stores and builds technology systems for its business.

That integrated structure is central to its argument that a larger business can eventually generate higher margins.

Q2 FY27 Results Show Strong Revenue and Profit Growth

Lenskart’s September-quarter performance provides an indication of the operating momentum behind its expansion strategy.

Financial metric	Q2 FY27	Year-on-year change
Revenue	₹2,845 crore	+32.5%
EBITDA	₹392 crore	+65%
EBITDA margin	13.8%	Up from 11.1%
Profit after tax	₹232 crore	More than doubled

The faster growth in EBITDA compared with revenue indicates that the company improved its operating profitability during the quarter. Its EBITDA margin expanded from 11.1% in the corresponding period a year earlier to 13.8%.

For the first half of FY27, revenue increased 33% to ₹5,559 crore. Profit after tax reached ₹461 crore, while the company’s trailing 12-month revenue crossed ₹10,000 crore.

The performance reflects demand across its domestic and international businesses, alongside higher eyewear volumes and premiumisation. Lenskart also maintained its consolidated product margin at 70%, compared with 69.2% a year earlier, despite continued currency pressure.

However, the latest results do not mean the company has already reached its long-term profitability ambition. Its current margin remains below the 25% target, leaving room for further operational improvements.

Controlling the Entire Eyewear Value Chain

Lenskart’s central strategy is to retain more of the value generated at each stage of the eyewear business.

Traditional eyewear retail often involves multiple independent participants, including frame manufacturers, lens suppliers, distributors, wholesalers and retailers. Each participant captures a portion of the final product’s economics.

Lenskart is attempting to bring more of these activities under its own operating structure. It manufactures frames and lenses, develops brands, invests in research and development, manages retail channels and operates technology systems across its business.

This approach can provide greater control over product quality, pricing, inventory and customer experience. It may also reduce dependence on external suppliers and intermediaries.

The benefits could become more significant as manufacturing volumes increase. A factory that produces more frames and lenses can spread certain fixed costs across a larger number of units. Similarly, technology investments can support additional stores and customers without requiring a proportional increase in employees.

Management believes this combination of scale and vertical integration can create additional profit pools over time.

Store Expansion and Customer Acquisition Remain Priorities

Despite its profitability ambitions, Lenskart does not intend to slow expansion simply to improve quarterly margins.

The company sees substantial room for growth in India’s eyewear market, where access to eye testing and corrective eyewear remains uneven. It wants to bring more consumers into the category while encouraging existing customers to purchase multiple pairs for different occasions and needs.

In an interview with Moneycontrol, co-founder and CEO Peyush Bansal highlighted the gap between eyewear retail and other consumer categories. He pointed to the relatively low number of eyewear stores compared with jewellery outlets and argued that a large share of the population still lacks access to regular eye testing.

Lenskart is also trying to change how consumers view glasses. Rather than treating eyewear only as a medical necessity, the company wants customers to consider it a fashion and lifestyle product.

Its Gold loyalty programme is part of this strategy. The programme is designed to encourage repeat purchases through benefits such as offers, lens replacements and accumulated points.

Bansal said the number of units purchased per customer increased from 1.75 to 1.86 during the latest quarter. The company believes that increasing purchase frequency can support revenue growth without relying exclusively on acquiring new customers.

Manufacturing, Automation and AI Could Improve Margins

Technology investment is another important part of Lenskart’s plan to improve profitability.

The company is developing in-house systems for manufacturing, merchandising, replenishment, customer support and distribution. Automation can help it handle higher business volumes without increasing manpower at the same rate.

AI is also being applied across its operations, including customer-facing services and eye testing. Bansal said the company has used AI to support remote optometry, potentially allowing optometrists to serve more customers.

Lenskart is also exploring technology-led approaches to self-optometry and digital customer interactions. Its Drysh initiative, described by Bansal as involving a small language model with optometrist supervision, is one example of how the company is experimenting with AI-enabled services.

The broader objective is to connect customer data, eye-testing information, product development and manufacturing decisions. Better coordination could help the company identify consumer preferences faster, manage inventory more efficiently and improve the shopping experience.

These investments involve costs, and their full financial impact may take time to emerge. But Lenskart believes that automation and proprietary technology can eventually make its operations more productive.

Premiumisation and International Expansion Add to the Opportunity

Lenskart is also seeking growth through premium products and international markets.

Premiumisation can increase average selling prices and create opportunities for differentiated products. The company is working across price points while developing products for specific consumer needs, including advanced lens coatings and specialised eyewear.

Its international business offers another potential source of scale. Manufacturing frames and supplying lenses to overseas markets could help Lenskart use its production capabilities across a wider customer base.

The company has also reported that international business margins remained above 10% for a second consecutive quarter, according to its latest results coverage.

However, international expansion brings its own operating challenges, including local competition, consumer preferences, distribution costs and currency movements. The ability to maintain consistent product quality and operating efficiency across markets will influence how much these operations contribute to overall profitability.

The Bigger Picture: Growth Before Short-Term Margin Optimisation

Lenskart’s strategy highlights a common trade-off for expanding consumer businesses: prioritising market penetration and infrastructure today in the expectation of stronger operating economics later.

A focus on near-term margins could encourage the company to limit store openings, marketing expenditure or technology investment. Lenskart is signalling that it does not want to make those decisions solely to improve short-term financial performance.

The approach also reflects the economics of the eyewear market. Customer acquisition, eye testing, product availability and repeat purchases can reinforce one another. If Lenskart succeeds in making eyewear a more frequent purchase, it could increase customer lifetime value and improve the productivity of its retail network.

However, the 25% margin ambition depends on several factors working together: higher sales volumes, manufacturing efficiency, repeat purchases, technology adoption and disciplined operating costs. The target is therefore a long-term business objective, not a guaranteed outcome.

Looking Ahead

Lenskart is expected to continue investing in stores, manufacturing, AI and customer acquisition as it attempts to expand its presence in India and international markets. Its recent financial results show that revenue and EBITDA are growing, with operating margins improving. The next challenge will be sustaining that momentum while funding expansion and maintaining product affordability.

For investors, the key indicators will include revenue growth, same-store sales, customer purchase frequency, manufacturing productivity and EBITDA margin progression. Whether Lenskart eventually reaches its 25% target will depend not only on selling more eyewear, but also on how effectively it converts its integrated business model and technology investments into lasting operating efficiencies.