Lenskart taps AI, global scale, and remote optometry to unlock 'compounding' growth phase

Every eye test conducted by Lenskart expands its addressable market. This, according to co-founder and CEO Peyush Bansal, is the engine behind the newly listed company's financial results this quarter.

"In India alone, we conducted 5.5 million eye tests, up 60% year on year. The number that matters the most is that 49% of these were first-time eye exams," Bansal said during the company's Q3 FY26 earnings call.

The omnichannel eyewear retailer clocked a 37% growth in its topline on the back of higher volume, which stood at 32% YoY. This was driven by aggressive store expansion and infrastructure, particularly with remote optometry and AI-driven testing.

The quarter also witnessed the company's existing investments in AI yield results, with EBITDA margin expanding by 550 basis points, crossing the 20% threshold for the first time.

Record same-store sales growth

In the three months ending December 31, 2025, Lenskart added 169 stores. It clocked its record high same-store sales growth of 28%, owing to high volume and repeat purchases from Gold customers.

This suggests a growing pie of addressable market rather than splitting the same demand across stores, a crucial metric as the company enters a phase that the CEO calls a 'compounding phase, where every incremental rupee and dollar in revenue will add more to the EBITDA."

New stores in Tier II cities make up Lenskart's best-performing cohort, with an average of 13.2 lakh monthly revenue. The number is high due to limited options in the region, fuelling demand as consumers move from unorganised shops to organised brands.

Global business shines

Lenskart's global business, which includes the Middle East, Thailand, Singapore, and Japan, saw accelerated profitability owing to expanded product margins and better capital utilisation.

"Our International segment at 705 stores is already at a 6.1% EBITDA pre-India on a 9-month basis versus 2% for 9 months FY25," the company said in a shareholder letter. It expects to tap into further efficiencies as it aims to cut down on cost price while selling with a premium tag to reap the benefits of its centralised supply chain.

The segment clocked a revenue growth of 40% at Rs 936 crore, along with a profit of Rs 32.5 crore in the December quarter.

Building towards an intelligence company

Lenskart aims to launch its smart glasses in the fourth quarter, with features, including photo and video capture, logging meals, AI chat, etc.

"We are uniquely positioned to distribute smart eyewear at scale because people need prescription lenses even in smart glasses," added Bansal, highlighting that Lenkart's store network, customer base, and eye testing infrastructure give it an edge as it looks to build up a tech-first eyewear range.

However, it doesn't expect material revenue contribution from this in the near term, and long-term focus is expected to be on data rather than hardware, he said.

On a consolidated basis, the NCR-based company clocked an operating revenue of Rs 2,307.7 crore, while its profit jumped nearly 70% to Rs 132.7 crore.