Lenskart's India margins hit 64% as Japan scales to 7% EBITDA
Q4 revenue grew 41% to ₹2,516 cr, with EBITDA up 61%. Management guided for a 25% steady-state EBITDA margin in India and flagged a margin discrepancy in product mix commentary.
— 2 earlier stories on Lenskart Solutions Ltd. →What's new
- India same-store sales grew 24% in Q4; 542 net stores added for FY26.
- International EBITDA margin reached a record 7%, with Japan the standout.
- Management clarified a 64% flat product margin figure, attributing it to rupee depreciation offsetting integration gains.
Why this matters
Lenskart is proving it can scale both revenue and margins simultaneously, a rare combination for an omnichannel retailer. The 64% India product margin, if sustained, supports the path to the 25% EBITDA target, but the currency-linked volatility shows the business isn't immune to macro headwinds.
What we're watching
- Whether the 25% India EBITDA target is met by FY27.
- The trajectory of international margins as Japan and other markets scale.
- Execution on AI and smart-glasses initiatives mentioned on the call.
The full read
Lenskart's Q4 call showed a business firing on both cylinders: revenue up 41% to ₹2,516 cr and EBITDA up 61% to ₹322 cr. The core Indian business delivered 24% same-store sales growth, supported by 542 net store additions in the year. The headline figure from the call wasn't a top-line number but a margin one: management clarified a 64% flat product margin, attributing the stability to currency movements rather than underlying gains. That's a cautious signal. Internationally, the story is cleaner, with EBITDA margins hitting a record 7% and Japan scaling. The target of a 25% pre-IndAS EBITDA margin in India remains the yardstick. The call was less about what happened and more about the pieces being put in place for FY27, with AI and smart glasses as the next bets.
Questions answered
- What drove the 41% revenue growth in Q4?
- The growth was led by a 24% increase in India same-store sales and 542 net store additions over the full year. International operations, particularly in Japan, also contributed.
- Why did management discuss a 64% product margin?
- The figure appeared to be a discrepancy between prior and current commentary. Management clarified that the 64% margin was flat, with rupee depreciation offsetting benefits from integration.
- How is the international business performing?
- International EBITDA margin reached a record 7%, driven by growth in Japan. The company is focusing on this segment as a key pillar for future expansion.
- What is the long-term margin target for India?
- Management guided for a 25% pre-IndAS EBITDA margin in India on a steady-state basis. This target is a key metric for the business's profitability.
Story so far
All notes on LENSKART →- 27 May 2026 · 5:48 PM IST Lenskart's India margins hit 64% as Japan scales to 7% EBITDA
- today SoftBank exits Lenskart below 10%, sells ₹2,859 crore in open market.
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