Buy Lenskart Solutions; target of Rs 600: Motilal Oswal

Motilal Oswal is bullish on Lenskart Solutions has recommended buy rating on the stock with a target price of Rs 600 in its research report dated February 20, 2026.

Broker Research

February 20, 2026 / 10:07 IST

Buy

Motilal Oswal's research report on Lenskart Solutions

Lenskart is India’s largest vertically integrated, technology-led, omnichannel eyewear platform, addressing a structurally underpenetrated eyewear category in India (53% of population impacted, modest 35% penetration). Lenskart has built strong moats in a difficult-to-scale category through – i) a centralized, highly automated manufacturing facility and logistics network; ii) strong backward integration through in-house frame and lens manufacturing, which provides significant cost advantage; iii) large omnichannel presence through its mobile app and a network of 2,439 retail stores across 435+ cities in India and 705 international stores; iv) leveraging technology to ease constraints in scaling up eye tests, store expansions and delivering superior store economics (33% store-level pre-IND AS EBITDA, 10 months payback); and v) house-of-brands architecture spanning mass to premium eyewear, to achieve its goal of making quality eyewear accessible and affordable.

Outlook

We expect Lenskart to deliver a CAGR of 25%/53% in pro forma consolidated revenue/pre-IND AS EBITDA, largely driven by volume growth, product margin improvement, and 625bp operating leverage-driven margin expansion over FY25-28 (320bp over 9MFY26-FY28). Lenskart’s near-term FCF generation is impeded by upfront capex on the upcoming Hyderabad facility (to future-proof the business). However, we expect significant improvement in FCF generation (to 65-70% of pre-IND AS EBITDA) beyond FY28. We initiate coverage on Lenskart with a BUY rating and a TP of INR 600, premised on DCF-implied 55x FY28E pre-INDAS EBITDA. Our valuations for Lenskart are at a premium to other leading retailers, but we believe the multiples are justifiable, given Lenskart’s superior growth profile, limited organized competition and long growth runway.

For all recommendations report, click here