Lenskart seen reaching 4,500 India stores by FY29, with 1,900 additions forecast
Motilal Oswal has recommended Lenskart, citing automated manufacturing and omnichannel scale. The brokerage expects the eyewear retailer to add about 1,900 India stores between FY26 and FY29, while projecting 27% revenue CAGR and 46% EBITDA CAGR over the period.
What happened
Motilal Oswal recommends Lenskart, citing automated manufacturing, omnichannel scale and expansion to about 4,500 India stores by FY29. The brokerage forecasts
Key facts
- CMP Rs707
- target price Rs800
- 13% upside
- approximately 4,500 India stores by FY29
- approximately 1,900 store additions during FY26-29
- sub-10-month store payback
- 33%+ store EBITDA margins
- India EBITDA margin projected at 19.4% by FY29
- international EBITDA margin projected at 13.5% by FY29
- 27% revenue CAGR FY26-29E
- 46% EBITDA CAGR FY26-29E
- 59% PAT CAGR FY26-29E
Why this matters
Lenskart’s accelerating India footprint could increase the strategic value of regional eyewear brands, optical-service platforms and retail-tech capabilities that strengthen local reach or store productivity.
What to watch
- Annual net store additions versus the implied pace of about 630 openings per year through FY29.
- Same-store sales growth and evidence that new stores are additive rather than cannibalistic.
- Revenue per store, store payback periods and EBITDA-margin progression.
- Share of sales from tier-2 and tier-3 cities and mix of company-operated versus franchise stores.
- Manufacturing utilization, prescription-lens delivery times and inventory turns.
- Competitive store expansion, discounting and marketing intensity from organized eyewear peers.
- Consumer discretionary demand, mall/high-street footfall and optical purchase frequency.
- Prioritize cluster-based openings around existing logistics and brand-awareness hubs rather than isolated stores.
- Increase penetration in tier-2 and tier-3 cities with smaller-format stores, franchise partnerships and mobile eye-checkup outreach.
- Use new stores as omnichannel service points for eye tests, frame trials, returns, repairs and rapid prescription fulfillment.
- Expand automated manufacturing capacity and regional distribution to protect lead times as prescription-lens volumes rise.
- Push higher-margin lenses, progressive prescriptions, contact lenses, accessories and membership plans to raise customer lifetime value.
- Use store-level data to close or relocate underperforming formats quickly and limit cannibalization.