Financial Performance and Margin Expansion
Lenskart reported high operating leverage during Q3 FY26, where revenue growth of 37% translated into a 90% increase in EBITDA. Operating revenue reached ₹2,308 crore, while EBITDA crossed the ₹462 crore mark. This performance was driven by significant improvements in cost efficiencies across marketing, which declined by 70 basis points, and employee costs, which benefited from AI-enabled productivity.
In India, the premium lens segment now accounts for 38% of total revenue, contributing to a 7% increase in Average Selling Price. The company transitioned into a compounding phase where incremental revenue adds disproportionately to the bottom line.
Strategic Shift Toward AI and Algorithms
Management emphasized a strategic transition from a traditional retail focus to an algorithm-driven enterprise. By utilizing GeoiQ for location intelligence, Lenskart now predicts store revenue based on mobility patterns and satellite imagery with high accuracy. Remote optometry has been scaled to 369 stores in India, allowing optometrists to conduct eye exams for customers located hundreds of kilometers away.
Furthermore, the newly launched face-scan feature in physical stores generates over 100,000 scans daily. These technological investments have enabled the company to expand into tier-2 and tier-3 cities while maintaining superior unit economics and customer experience scores.
International Growth and Market Dynamics
The international business segment, comprising 705 stores, reported an EBITDA margin of 6.1% pre-IndAS, showing significant improvement from 2% in the previous year. Revenue in international markets grew 32.7% YoY in current currency terms. Singapore and the UAE remain high-performing regions where supply chain integration has resulted in product margins exceeding the 75% mark.
The company is replicating its successful India playbook across Thailand and Saudi Arabia. Management noted that international product margins are structurally higher than those in India, providing a long runway for overall margin improvement as the global footprint expands.
Future Outlook and Product Innovation
- Planned soft launch of 'B by Lenskart' smart glasses in Q4 FY26, featuring photo, video, and AI-chat capabilities.
- Targeting a massive expansion in eye testing capacity to serve the estimated 500 million people needing vision correction in India.
- Continuation of manufacturing localization with the new Hyderabad facility to mitigate currency volatility in frame imports.
- Integration of kid-specific eye testing technology across all Indian stores to tap into the 8-plus age demographic.
- Focus on growing the Gold Membership base, which currently stands at over 8 million active members.
Leadership Commentary
We are transforming eyewear from atoms to algorithms. What we are able to do today with AI was not possible a year back. This is the engine behind our financial results this quarter.
