Ever since its inception two decades ago, Lenskart has remained a capex-heavy business — building manufacturing capacity, developing proprietary tech, expanding offline footprint, and testing international markets.

While these long-term bets have helped the company achieve significant scale, it also kept its margins under pressure. However, Q3 FY26 suggests this equation is now beginning to shift on the back of operating leverage kicking in and improving margins.

The company reported a consolidated profit after tax (PAT) of ₹132.7 Cr in the December 2025 quarter, marking an over 70X YoY surge from ₹1.9 Cr PAT reported in the year-ago period. On a sequential basis, PAT rose 28% from ₹103.5 Cr in Q2 FY26. Operating revenue increased 38% YoY and 10% QoQ to ₹2,307.7 Cr.

The numbers indicate that the company has now begun to benefit from investments over the years. Moreover, the Q3 performance points to a compounding business model rather than a short-term windfall.

Lenskart reported a ₹1.7 Cr loss from its associate entity and exceptional losses of ₹5.3 Cr related to IPO expenses. Excluding these items, underlying profitability remained strong.

Now, let’s decode how Lenskart pulled off a breakthrough quarter.

More Stores, Better Economics

Volume expansion emerged as the primary growth driver in Q3 FY26, with eyewear units sold rising 31% YoY. Enabled by the rapid expansion of eye-testing infrastructure, Lenskart sold 89 Lakh units during the quarter versus 83 Lakh in the previous quarter and 69 Lakh in the year-ago period.

In Q3, Lenskart conducted 55 Lakh eye tests, up 60% YoY. Notably, 49% of these were first-time examinations, indicating continued market creation rather than catering to a pre-existing consumer base.

The growth in eye tests is closely linked to the company’s expanding physical footprint. In Q3........

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