SynopsisElara Capital initiated coverage on Lenskart with a Buy rating and a target price of Rs 615, implying a 22% upside. The brokerage called the eyewear company a structural compounder with a strong competitive moat and a differentiated full-stack business model. Analysts believe Lenskart is well placed to replicate the growth journey of Titan’s jewellery business and emerge as a category leader in eyewear.AgenciesBrokerage Elara Capital has initiated coverage on Lenskart Solutions with a Buy rating and a target price of Rs 615. Domestic brokerage Elara Capital initiated coverage on eyewear major Lenskart Solutions with a Buy call and a target price of Rs 615 (22% upside), calling the company a structural compounder given its moat that would be difficult to replicate, making the business resistant to competition.Further, analysts led by Amit Purohit said the company has built one of India’s most differentiated retail models by creating a full-stack eyewear ecosystem that spans the entire value chain. Analysts believe it is well positioned to mirror the growth trajectory of Titan Company Limited’s jewellery business, steadily compounding market share gains over time and emerging as a category-defining leader in eyewear, much like Tanishq did in the jewellery segment.Here are 3 reasons behind the bullish call1.) Strong business model The brokerage said Lenskart has built a self-reinforcing growth and profitability flywheel. The brokerage highlighted the company’s best-in-class revenue productivity of nearly Rs 25,000-30,000 per square foot, high gross margins driven by its private-label-led model and an industry-leading store payback period of around 10-12 months.A key differentiator for Lenskart, according to Elara, is its ability to consistently attract store footfalls, reflected in strong same-store sales growth (SSSG) of 20%. It suggests the Peyush Bansal-led company could have even stronger potential, particularly as revenues across Tier I and Tier II markets remain nearly similar.2.) Full stack retain infra Elara said Lenskart’s differentiation in India’s vision care market comes from its scalable customer acquisition funnel, anchored around free eye testing and continued investments in technology to improve customer experience. Its focus on eye testing, supported by tech-enabled remote testing capabilities, allows it to conduct nearly 600 eye tests per store every month. Lenskart is targeting 100 million eye tests over time, against 23.7 million eye tests conducted in FY26.The brokerage added that Lenskart’s backward integration strategy has evolved beyond a cost-efficiency measure into a strategic competitive advantage. It enables better control over products, faster inventory turnover and next-day delivery across 78 cities, strengthening both customer experience and margin resilience.3) Overseas foray, acquisitions Elara also highlighted Lenskart’s international expansion and acquisitions strategy as both growth- and value-accretive. The acquisitions of eyewear brands Owndays in 2022 and Meller in 2025 have helped the company gain access to established premium markets, stronger design capabilities, and higher-value customer segments. International operations contributed 42% of revenue in FY26, with the company now present in more than 10 countries and operating over 600 stores globally. According to Elara, these international acquisitions are also helping improve average selling prices (ASP).Lenskart Q4 snapshotThe company reported a nearly 46% YoY surge in revenue from operations to Rs 2,516 crore for the January-March quarter of FY26, from Rs 1,727 crore in the year-ago period, prompting bullish brokerage calls and target price hikes.Despite the strong revenue growth, net profit declined 9% YoY to Rs 200 crore during the quarter under review from Rs 219 crore in the corresponding quarter of the previous financial year.For the financial year ended March 31, 2026, Lenskart reported a 32% YoY increase in revenue to Rs 9,002 crore. EBITDA climbed 55.3% YoY to Rs 1,789 crore, while adjusted PAT surged 148% YoY to Rs 530 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. 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