Initiation of Coverage: Quest for its own Blue ocean; initiate at Buy

研报英文原文证据摘录

Initiation of Coverage: Quest for its own Blue ocean; initiate at Buy

s it believes most people do not proactively test their eyes the next 15 years, with Lenskart as a

for refractive issues and thus do not realise they need corrective eyewear. India's formidable player and a c20% market

eyewear sector is growing at c10% structurally and, even under conservative share.

estimates, should reach US$25-35bn over the next 15 years, implying the category

can continue to grow in the double digits for a long time. A large part of the

market is fragmented, and offers an opportunity for significant market share gains

for Lenskart, as a dominant market leader.

4. Value innovation and disruptive pricing are central to its strategy: Lenskart

has made a strategic choice to stay focused on providing quality eyewear at

affordable prices (typically its frames and lenses are priced at nearly half that of

competing peers with comparable quality). It has chosen to build a vertically

integrated manufacturing led business, with company-owned physical stores, and

a digital and AI-enabled value chain from eye testing to delivery. This has enabled it

to charge nearly the lowest prices among the organised players (see 'Choices the

company is making to win'), while maintaining among the highest Pre-Ind-AS

EBITDA margins in the industry at c15%. Its EBIT margins exceed rival Titan Eye by

c400bps (Q4FY26) despite its lower prices.

5. Significant competitive advantages that are difficult to emulate: 1) Lenskart's success is rooted in a sharp

Lenskart 'disruptive value' has come from years of sunk costs in its manufacturing value focus, disruptive pricing

and technology backbone, store network, brand architecture and consumer enabled by a vertically integrated

loyalty, which is very hard to emulate.