Shares of Lenskart reached a record ₹627 following strong Q1 FY27 financial results. Motilal Oswal has initiated coverage with a 'Buy' rating and a target price of ₹705, citing robust revenue and volume growth. Investors are now assessing if current valuations account for future expansion goals.
Lenskart Solutions Ltd. saw its share price touch a record high of ₹627 on August 13, 2026, following the release of its first-quarter financial results for fiscal year 2027. Motilal Oswal Financial Services has initiated coverage on the stock with a 'Buy' rating, assigning a target price of ₹705. The brokerage report highlights the company's strong performance, driven by both domestic and international operations.
In the first quarter of fiscal year 2027, Lenskart reported a consolidated net profit of ₹228.43 crore. The company saw a 34% year-on-year increase in revenue, supported by a 25% growth in sales volumes. A key factor behind this performance has been a move toward premium products, which helped the company achieve product margins of 70.3%. The Indian business remained a significant contributor, with 18% growth in same-store sales and a steady pace of new store openings.
The company’s international business also showed momentum, growing 29% year-on-year on a constant currency basis. Motilal Oswal’s valuation for the ₹705 target is based on projections for September 2028 EBITDA, adjusted for accounting standards. The brokerage expects the company's strategic initiatives to support continued operational growth.
While the market has reacted positively, some analysts have raised points for investors to monitor. For instance, reports from institutions like Citi have suggested that the company’s current valuation may already reflect high expectations for growth. For shareholders, the key monitorables moving forward will include the company's ability to maintain its margin levels, successfully execute store expansions, and manage potential supply-side constraints as demand scales up. As with many high-growth consumer retail stocks, the share price remains sensitive to broader market sentiment and the company's ability to meet aggressive long-term targets.