Lenskart: Emkay Global sees 6x revenue growth potential, initiates 'Buy'

Lenskart stock gets 'Buy' rating from Emkay Global with ₹525 target as brokerage highlights market leadership, tech edge and strong growth outloo

Lenskart share price today

  Domestic brokerage Emkay Global Financial Services has initiated coverage on Lenskart Solutions, issuing a 'Buy' rating on the stock. The brokerage firm's share price target of ₹525 on Lenskart stock implies a 16.9 per cent upside from Friday’s closing price. 

The bullish outlook on the eyewear company, Emkay said, is rooted in Lenskart's market share of 5 per cent in India’s $9 billion eyewear industry and its rapid technological evolution into a global retail powerhouse. 

Emkay analysts also suggested that Lenskart is uniquely positioned to capitalise on significant "macro tailwinds," including a 700-basis point GST cut and the increasing shift of eyewear from a medical necessity to a high-frequency fashion accessory.

 

  "It is an agile firm, aided by automation/vertical integration at the back-end, remote optometry/virtual try-ons at the front-end, and use of geo-analytics/Vision AI for identifying new locations/merchandising. With scale-up, these moats are reflecting in the company’s superior value proposition, faster deliveries, accelerated network expansion, and leading share, even in international geographies such as Singapore/Dubai," the brokerage noted.

Lenskart share price history 

On the bourses, Lenskart shares added 1.1 per cent on the National Stock Exchange (NSE) in a weak market. The stock was up 0.68 per cent at 11:55 AM as against a 0.24 per cent dip in the benchmark Nifty50 index. 

  Over the past one month, Lenskart shares have rallied 10.5 per cent on the NSE as against a 1.25 per cent decline in the 50-stock benchmark index. The stock is up 12.53 per cent since its stock market listing on November 10, 2025.  CATCH STOCK MARKET LIVE UPDATES TODAY

Lenskart: Financial projections, valuation, target price

Emkay Global’s valuation of Lenskart is based on a discounted cash flow (DCF) model, implying a 56x multiple on December 2027 estimated Ebitda (earnings before interest, tax, depreciation, and amortisation). 

Despite the valuation appearing "optically high" due to recent profitability turnarounds, the brokerage anticipates a 6x revenue scale-up in India over the next decade at a compounded annual growth rate (CAGR) of 20 per cent. 

Metric	Projection (FY25-28E)	Industry Average
Revenue CAGR	~25%	12% - 15%
Ebitda CAGR	~50%	18% - 26%
Store Payback	< 12 Months	18 - 24 Months

 

  "With business model shift toward COCO stores and leverage over growth investments, we see prospects of an average annual margin gain of ~150bps, driving Ebitda CAGR of nearly 30 per cent over the next decade," Emkay said. 

In our view, the business has scalable optionalities, which enhances medium-term prospects, it added.

 

Tech-led moats

According to Emkay Global, Lenskart’s "vertical integration" is the prime reason for its solid competitive advantage. By controlling everything -- from manufacturing to the final sale -- the company maintains a 64 per cent gross margin in India. 

    • Automation & AI: The firm utilizes Vision AI for merchandising and geo-analytics to pinpoint high-potential store locations. 

    • Front-End Innovation: Remote optometry and virtual try-ons have drastically reduced the barriers to eye testing, especially in Tier 2 and Tier 3 cities. 

    • Global Footprint: Beyond India, Lenskart has already secured market leadership in Singapore and is scaling rapidly in Dubai, offering next-day delivery in nearly 60 cities.  "Concurrently, the wide product range, strong value proposition, and quick deliveries (next day in 58 cities) ensure best-in-class revenue throughput. Within eyewear retail, Lenskart is a clear leader, with over 3x scale of the next largest player - Titan Eyewear’s," Emkay highlighted.

 

Strategic "optionalities" for future revenue

Going ahead, Emkay Global believes Lenskart has four scalable growth engines that could provide significant earnings accretion: 

    1. Vision Sure: A managed care ecosystem for comprehensive eye health.

  2. Audiology: Natural expansion into hearing care services.

  3. Comprehensive Testing Fees: Moving toward monetizing expert consultations.

  4. Smart Eyewear: Ramping up AI-based wearables in the Indian market.

  With a robust balance sheet boasting approximately ₹4000 crore in net cash, Lenskart is well-funded to pursue its goal of becoming a global giant, Emkay Global said.