Large Cap Stock to Buy Now for an Upside of 28%; Recommended by Motilal Oswal

Synopsis: Motilal Oswal maintained a ‘Buy’ rating on Lenskart with a target price of Rs.650, implying nearly 31 percent upside, after the company reported a blockbuster Q4 FY26 with adjusted PAT surging 165 percent YoY, EBITDA doubling, and volumes rising 25 percent, reinforcing confidence in its long-term growth and profitability trajectory.

A fast-scaling omnichannel eyewear retailer is drawing fresh attention after delivering a sharp improvement in profitability, margins, and operational efficiency. Backed by aggressive store expansion, premiumization, and technology-led execution, the company’s latest performance has strengthened expectations that it is entering a new phase of scalable and sustainable growth. 

With a market capitalization of Rs.88,522 crore, shares of Lenskart Solutions were trading at Rs.510 per share, with a 52-week range of Rs.557.65 to Rs.356.10, with a trailing P/E of approximately 176x.

Motilal Oswal Rating Update

Motilal Oswal maintained its ‘Buy’ rating on Lenskart with a price target of Rs.650, pointing to an upside of close to 28 percent from current levels. The brokerage flagged that Q4 FY26 delivered on multiple fronts simultaneously: volumes grew 25 percent year-on-year, average selling prices moved higher on the back of premiumization, and operating leverage flowed cleanly through to the bottom line.

The firm expects the growth momentum to hold through FY28, with revenue, EBITDA, and PAT projected to deliver 25 percent, 42 percent, and 44 percent compounded annual growth, respectively, over FY26–28. Key drivers cited include accelerated Tier 2+ store additions, AI-led operating efficiencies, and continued supply-chain localization. 

Business and Financial Overview

Lenskart was founded by Peyush Bansal and operates as an omnichannel eyewear platform with vertically integrated manufacturing in India, a Thailand joint venture for frame production, and a supply chain that spans lens manufacturing, in-house frame production, and last-mile delivery. In FY26, the company conducted 23.8 million eye tests, up 49 percent year-on-year, with roughly half being first-time exams in India.

The Q4 FY26 numbers validated the scale of its compounding. Consolidated revenue came in at Rs.2,516 crore, up 41 percent year-on-year. EBITDA grew 61 percent to Rs.536 crore, with margins expanding 270 basis points to 21.3 percent. Adjusted PAT rose 165 percent to Rs.204 crore, with PAT margin touching 8.1 percent.

For the full year FY26, revenue crossed Rs.9,002 crore, up 32 percent. EBITDA grew 55 percent to Rs.1,790 crore. Adjusted PAT reached Rs.530 crore, 2.5 times the prior year figure,  with EBITDA (pre-Ind AS 116) crossing Rs.1,009 crore for the first time. ROCE excluding IPO proceeds expanded sharply to 23.1 percent from 13.8 percent a year ago, reflecting both earnings growth and disciplined capital deployment.

The India business added 542 net new stores in FY26, nearly double the 282 added in FY25, with 254 of those additions in Tier 2+ cities across 157 new towns. Same-store sales growth ran at 20.8 percent for the full year, while same-pincode sales growth of 27.3 percent confirmed that new stores were expanding total demand rather than cannibalizing existing outlets. Gold membership reached 8.8 million subscribers, with subscription fees growing 85 percent year-on-year.

International revenue grew 30 percent to Rs.3,790 crore in FY26, with the segment’s EBITDA (pre-Ind AS 116) margin expanding 335 basis points to 7 percent, tracking well ahead of where the India segment was at a comparable store count.

The Q4 FY26 performance reinforces Lenskart’s transition from a high-growth startup into a scalable, profitable consumer platform. With strong operating leverage, accelerating Tier 2 expansion, rising premiumization, and improving return ratios, the long-term growth narrative remains intact. However, after the sharp rally, investors may watch execution consistency and margin sustainability closely over the next few quarters. 

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