Buoyed by profit surge, Lenskart to go big on AI investments

Bengaluru: Eyewear retailer Lenskart to double down on investments in artificial intelligence (AI) and larger technology after seeing profits post tax hike ₹133 crore in the December quarter of FY26, an increase of 237% from a year ago. Three key initiatives – AI-powered self-eye testing, the upcoming Hyderabad factory and B smart glasses – will form the basis of its long-term investments, which are expected to “pay for itself over decades”.

The company had made a report ₹Last year we made a profit of ₹ 39 crore.

“As Lenskart, we made this choice years ago; to be an AI-first company,” Chief Executive Officer Peyush Bansal said in a letter to shareholders on Wednesday. “We understand that bringing vision to a billion people requires a technology that learns and improves with every interaction. This quarter’s results make that belief particularly visible.”

The Gurugram-based company’s third-quarter operating revenue increased by 38% year-on-year. ₹2,307 crore. Total expenses increased ₹2,126 crore ₹1,690 crore a year ago, including one-time cost ₹5.3 crore on its initial public offering.

“These are non-operational, one-off items that do not reflect the underlying performance of our business. We do not expect similar exceptional items in the coming quarters,” the firm said.

Lenskart said the December quarter reflected strong momentum in the vision correction category, with growth driven by both higher sales in existing stores and deeper penetration in the same neighborhoods.

Sales in existing stores increased by 28%, while revenue from the same pin codes increased by 36%; This indicates strong demand in established stores as well as expansion into new service areas. It was stated that glasses units sold increased by 31%, largely due to new customer additions.

The company performed 5.5 million eye tests in the quarter, up 60% from a year earlier; 49% of these were first-time examinations, indicating that it is expanding rather than taking share of the market. Remote optometry-based eye exams increased by 330%, helping Lenskart scale in tier 2 and smaller cities.

Paid Gold membership program continued to drive repeat purchases. 37% of sales in the third quarter came from members acquired prior to the quarter. The company added 0.7 million net Gold members, increasing the active base to 8.1 million and ₹50.5 crore in subscription fees.

Average selling prices rose 7% as customers opted for premium products, with Owndays lenses accounting for 38% of revenue, according to the company.

The firm is increasingly investing in bonuses to drive the next leg of growth and margin expansion. The share of progressive lenses, which generally have higher margins, continued to rise in the revenue mix during the quarter, signaling a steady shift towards higher value products, Bansal said.

“We are seeing improvement in the share of progressive lenses in our revenue mix, which carry higher margins. Our premium Owndays lens brand has grown, and with the launch of Meller and the continued strength of John Jacobs, consumers have more opportunities to purchase higher-margin premium products. We are also innovating technologically advanced lenses such as myopic progression lenses; as their share increases, margins will also increase,” Bansal said on Wednesday’s earnings call.

“We have improved 550 basis points from FY23 to date and see a clear path for continued expansion as these initiatives mature,” the company said.

Shares of Lenskart closed 0.5% lower on Wednesday ₹473 on the National Stock Exchange.