Lenskart expands margin as Q1 revenue rises 7.89% sequentially
Revenue grew faster than expenses, but higher tax and interest costs diluted the operating improvement; other income contributed 23.01% of pre-tax profit.
Filed 12 Aug 2026, 15:36 IST · after market close · Lenskart Solutions Ltd (LENSKART)
Key takeaways
- Consolidated revenue rose 7.89% sequentially as expenses grew 7.51%, lifting operating margin by 0.28 percentage points to 21.68%.
- Net profit increased 12.18% sequentially, but a 3.86 percentage-point rise in the tax rate and 22.16% higher interest expense limited the conversion of operating gains.
- Lenskart's 21.68% operating margin was 8.39 percentage points above the 13.29% median for 156 Consumer Discretionary peers that reported the quarter.
Price around the results
Revenue momentum improved in Q1FY27
Lenskart reported consolidated revenue of Rs 2,714.18 cr in Q1FY27, up 7.89% from Q4FY26, while operating profit grew 9.30% to Rs 588.48 cr. This was the fourth consecutive quarter of operating-margin expansion, from 19.77% in Q2FY26 to 21.68% now.
Faster revenue growth supported the margin gain
Expenses grew 7.51% sequentially, slightly slower than revenue, which widened operating margin by 0.28 percentage points. The improvement was partly offset below operating profit by a 22.16% rise in interest expense and a 3.86 percentage-point increase in the tax rate to 23.76%.
Other income was material to reported profit
Other income rose 47.27% sequentially and accounted for 23.01% of pre-tax profit, so reported earnings were not driven entirely by operations. Profit before tax rose 17.87%, ahead of the 12.18% increase in net profit as the higher tax rate absorbed part of the gain.
Margin remained ahead of the reported peer set
Lenskart's 21.68% operating margin exceeded the 13.29% median among 156 Consumer Discretionary peers that had reported Q1FY27, a gap of 8.39 percentage points. The results were filed after market close, so there is no immediate reported market reaction; after the last three results, the stock rose twice and fell once, with a median absolute move of 4.88%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,714 cr | ₹2,516 cr | +7.89% |
| Other income | ₹69 cr | ₹47 cr | +47.27% |
| Expenses | ₹2,126 cr | ₹1,977 cr | +7.51% |
| Operating profit | ₹588 cr | ₹538 cr | +9.30% |
| Operating margin (%) | 21.68% | 21.40% | — |
| Interest | ₹53 cr | ₹44 cr | +22.16% |
| Depreciation | ₹305 cr | ₹288 cr | +5.95% |
| Profit before tax | ₹300 cr | ₹254 cr | +17.87% |
| Tax | ₹71 cr | ₹51 cr | +40.73% |
| Net profit | ₹228 cr | ₹204 cr | +12.18% |
| EPS (₹) | ₹1.28 | ₹1.17 | +9.40% |
Operating margin of 21.68% compares with a Consumer Discretionary sector median of 13.29% across 156 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 21.68% after three consecutive quarter-on-quarter expansions.
- Whether other income remains below or around its 23.01% share of pre-tax profit.
- Whether interest expense growth moderates from 22.16% sequentially.