Lenskart shares surged nearly 4 per cent in today’s trade after global brokerage Jefferies initiated coverage on the eyewear retailer with a bullish buy rating and a price target of ₹500, signalling 14 per cent strong upside potential over its all-time high.
The tech-driven eyewear retailer will report Q2 results tomorrow.
The stock traded at 421 on the NSE at 10.56 am after soaring to a high of 423.95, against the previous close of 407.70.
The stock a fresh high of 438.85 on November 17, 2025. This followed the discount debut
The brokerage highlighted Lenskart’s rapid growth trajectory, expanding store network, and vertically integrated business model as core factors driving confidence in the stock.
According to Jefferies, Lenskart stands out as India’s largest tech-driven eyewear retailer with a market share of about 5 per cent in a highly fragmented sector dominated by unorganised players. Despite its leadership position, the company retains substantial headroom for growth, supported by increasing demand for prescription eyewear and rising penetration of organised retail.
The brokerage noted that Lenskart’s end-to-end control of design, manufacturing, logistics, and retail gives it a cost and efficiency advantage that many traditional opticians cannot match. Its expanding omni-channel presence and rising contribution from international markets further strengthen long-term prospects.
The brokerage expects strong revenue expansion over the next three years, along with significant improvement in profitability as scale and operating leverage kick in. With India contributing the bulk of earnings and international operations offering additional growth optionality, Jefferies believes Lenskart is well-positioned to sustain robust momentum.
On the financial front, Jefferies expects Lenskart’s revenue CAGR to grow at about 24 percent annually over FY25–28, driven by higher transaction frequency and volume growth. Adjusted EBITDA is projected to expand at more than 50 percent CAGR, with margins increasing by 600 basis points, while earnings per share are seen rising at around 44 percent CAGR. The company maintains a net cash balance sheet, with improving return ratios and free cash flows, Jefferies added.
In an upside scenario, Jefferies assumes a stronger revenue CAGR of 26 per cent over FY25-28, with pre-Ind AS EBITDA margins improving to 14 per cent in FY28. We value the company at 50x Mar-28e pre-Ind AS EBITDA to arrive at a target price of ₹560, it said.
In a downside scenario, Jefferies pegged the stock at ₹320, assuming a slower 16 per cent revenue CAGR through FY28 and pre-Ind AS EBITDA margins rising to about 12 per cent. It was valued at a 42x multiple March 2028 pre-Ind AS EBITDA to derive the lower target.
Investor sentiment reflected that optimism, with the stock outperforming broader market indices through the session. Market participants will now look ahead to upcoming quarterly results on November 29, 2025, and expansion updates to assess how Lenskart builds on this upgraded outlook.