Lenskart margin expands as revenue growth outpaces costs
Q2FY27 net profit rose 124.70% YoY, but other income contributed 18.47% of pre-tax profit and the tax rate fell 6.44 percentage points.
Filed 04 Nov 2026, 15:34 IST · after market close · Lenskart Solutions Ltd (LENSKART)
Key takeaways
- Revenue grew 35.73% YoY while expenses rose 32.18%, lifting operating margin by 2.09 percentage points to 21.86%.
- Net profit rose 124.70% YoY, helped by a 6.44-percentage-point decline in the tax rate, while other income contributed 18.47% of pre-tax profit.
- Sequential momentum continued as revenue increased 4.82% and operating margin widened 0.18 percentage points.
Price around the results
Revenue growth widened operating leverage
Lenskart Solutions reported consolidated Q2FY27 revenue growth of 35.73% YoY, while expenses grew 32.18%, allowing operating profit to rise 50.10%. The resulting 2.09-percentage-point margin expansion shows costs grew more slowly than revenue. Sequentially, revenue also rose 4.82% as expenses increased 4.58%.
Lower tax rate supported profit conversion
Net profit grew 124.70% YoY, faster than operating profit, as the tax rate declined 6.44 percentage points to 23.66%. Other income rose 74.74% YoY and accounted for 18.47% of pre-tax profit, so reported profit included a meaningful non-operating contribution. Interest rose 17.67% and depreciation rose 26.52% YoY, but neither offset the improvement in operating profit.
Operating margin has risen for four straight quarters
Operating margin improved in every quarter shown, from 19.77% in Q2FY26 to 20.11%, 21.40%, 21.68% and 21.86% in Q2FY27. Lenskart's margin was 9.95 percentage points above the 11.91% median for the 225 Consumer Discretionary peers that had reported the quarter. This places the quarter's margin well above the sector comparison despite rising depreciation and interest costs.
Management highlights Rs 82.2 cr of H1 investment
Management said the company invested Rs 82.2 cr in H1 FY27 across Owndays, Dimension NXG, Marco JV, Le-Petit Lunetier and Visionsure. The presentation said Owndays accounted for Rs 52.5 cr of that investment, followed by Dimension NXG at Rs 15.5 cr, Marco JV at Rs 7.1 cr, Le-Petit Lunetier at Rs 5.6 cr and Visionsure at Rs 1.5 cr.
After-close filing leaves the market reaction open
The consolidated results were filed after market close, so there is no current result-day move to assess. Across the four recent result reactions, the stock rose three times and fell once, with a median absolute move of 4.88%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,845 cr | ₹2,714 cr | +4.82% | +35.73% |
| Other income | ₹56 cr | ₹69 cr | -18.42% | +74.74% |
| Expenses | ₹2,223 cr | ₹2,126 cr | +4.58% | +32.18% |
| Operating profit | ₹622 cr | ₹588 cr | +5.70% | +50.10% |
| Operating margin (%) | 21.86% | 21.68% | — | — |
| Interest | ₹53 cr | ₹53 cr | -0.08% | +17.67% |
| Depreciation | ₹321 cr | ₹305 cr | +5.25% | +26.52% |
| Profit before tax | ₹304 cr | ₹300 cr | +1.63% | +105.73% |
| Tax | ₹72 cr | ₹71 cr | +1.19% | +61.72% |
| Net profit | ₹232 cr | ₹228 cr | +1.76% | +124.70% |
| EPS (₹) | ₹1.31 | ₹1.28 | +2.34% | +114.75% |
Operating margin of 21.86% compares with a Consumer Discretionary sector median of 11.91% across 225 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company invested ₹82.2 Cr in H1 FY27 across Owndays, Dimension NXG, Marco JV, Le-Petit Lunetier and Visionsure.
What to watch
- Whether operating margin holds above 21.86%.
- Whether other income remains below its 18.47% share of pre-tax profit.
- Whether expenses continue to grow more slowly than revenue after the 32.18% versus 35.73% YoY gap.