Lenskart Solutions has raised its stake in associate company Dimension NXG, signalling a deepening interest in its growing business, even as its shares enjoy a 70% rise since listing, supported by positive analyst forecasts.
Lenskart Solutions is likely to stay in focus after the eyewear retailer increased its holding in associate company Dimension NXG Private Limited, which operates under the Ajna brand. According to the regulatory filing cited by Zee Business, Lenskart spent about Rs 8 crore to buy another 1.80% stake, lifting its fully diluted holding to 9.01% from 4.84% earlier. The latest purchase follows two earlier additions this year, underscoring the group’s steadily deepening interest in the associate business.
The move comes as investor attention remains fixed on Lenskart’s strong post-listing performance. Motilal Oswal has kept a Buy rating on the stock and raised its target price to Rs 800, saying the shares have risen about 70% since the company listed in November 2025. The brokerage argued that the rally has been driven more by improving earnings than by a simple expansion in valuation, and said it has increased its FY28 profit after tax estimate by roughly 30%.
Motilal Oswal said Lenskart’s store economics remain a key part of its investment case. The brokerage pointed to a payback period of less than 10 months and store-level EBITDA margins above 33%, arguing that these figures support rapid expansion in India, where organised competition is still limited and eyewear penetration remains relatively low. It expects the company to reach about 4,500 stores in India by FY29. The brokerage also said Lenskart’s international business has outperformed its earlier expectations, with a pre-Ind AS EBITDA margin of 10.5% in Q1FY27, above its prior estimate of 9.2% by FY28.
For the FY26-FY29 period, Motilal Oswal expects revenue to grow at a compound annual rate of 27%, pre-Ind AS EBITDA at 46% and adjusted PAT at 59%. It sees India revenue rising faster than overseas sales, with a projected 29% CAGR versus 25% for the international business. On that basis, the brokerage lifted its consolidated EBITDA estimates for FY27 and FY28 by 4% and 8% respectively, while retaining its constructive stance on the stock.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
