Lenskart tops Nykaa on margins

n Lenskart Solutions Ltd's first results post-listing, investor focus should be on the comparison of pro forma financials.

- Manish Joshi

Merger and acquisition activities have distorted the reported financials, and pro forma figures reflect what the base quarter would have looked like if those deals had been in place earlier.

While Lenskart’s valuation comparison has been made with FSN E-Commerce Ventures Ltd (Nykaa), the crucial factor in its favour is that it enjoys a pretty high gross margin, i.e. the difference between the value of goods sold and the cost of goods sold.

For perspective: Lenskart’s blended gross margin at the company level is 69% in the September quarter (Q2FY26), whereas it is around 45% for Nykaa.

This is not a one-off and is likely to sustain. Lenskart has a gross margin of 63% in the India segment and 76% in its international segment. The management stated in the Q2 call that the gap between the two segments could narrow as India margin has potential to increase.