Strong growth but margin upside deferred; execution tracking well

Delivered ₹2,845 Cr confirmed; YoY growth 35.7% vs 32.5% claimed

PAT ₹232.4 Cr, +124.7% YoY — exactly as claimed

Operating profit matches ₹623 Cr; margin 21.9% (OPM) vs 13.8% cited (likely EBITDA pre-IndAS/different basis)

Delivered result confirms SSS momentum; claim supported by operational metrics

Internally consistent with segment growth trajectory; volume metrics credible

Prior: 'long-term target ~25%' (Q1). Q2: 'will not put a timeframe on 25%' — no exit date, explicitly deferred.

Intl product margin 75.5% → 77.1% YoY via OWNDAYS/Meller integration; EBITDA pre-Ind-AS ₹127 Cr, +87% YoY, 10.6% margin vs 7.3% prior year.

Q1 not mentioned; Q2 call emphasizes ₹500 affordable glasses, early journey, scaling logistics. Not undercutting strategy yet.

934 stores now have remote optometry; Drysh (AI-assisted) in pilot. Management calls it 'breakthrough' for scale; eye test growth 44% YoY to 70L.

Margins positively correlated with volume. Focus is on volume growth, will continue marketing investments. 12-month view shows expansion, but quarterly fluctuates with campaigns and seasonality.

Progressives show strong uptick via digitized measurement. ASP varies by campaign mix. Hustlr at ₹500 anchors low-end; units-per-customer improving (1.8→1.9) shows quality. Not guiding specific realization number.

Remote optometry critical unlock — enables 1 store/day opening in Tier 2+. AI (Drysh) can fill gaps. Hyderabad is bottleneck; investing and accelerating capacity. Will manage growth pace.

Nascent, early. Excited by response but managing logistics for scale (Tier 2, Tier 3, logistics to 10K stores). Lots of work ahead. Will show impact over time.

Pilot stage, learning consumer experience. Not undercutting majority of players — raising bar on experience, not price. Very early to comment on ASP. Focused on software/firmware capability and brand experience.

FX is major factor (INR ~₹14.2/RMB vs ~₹11-12 prior) — imported components hurt COGS. Structural offset: backward integration (in-house frames, lenses in India/China/Thailand). Vendor scale improving. Natural hedge at Group level (40% revenue non-INR).

Value creation in Tier 2+ is superior to metros. Slower growth initially but similar trajectory. Brands (OWNDAYS, John Jacobs) at premium scale, Lenskart at standard, Hustlr anchors affordability. Not differentiating pricing by tier yet, but economics improve with scale and operations efficiency.

Slow and steady. Soft launch April this year with signup list. Learned a lot on feature requests. 90% buying with prescription, ~every 2 weeks software updates in stores. Adoption growing daily, but early and multi-year journey. No undercut strategy — building ecosystem.

Q1 call gave no FY27 guidance. Q2 reaffirms strategy (Tier 2+ expansion, international, Hustlr, smart glasses). No exit guidance but trajectory clear.

Q2 EBITDA margin 13.8% by call metric (OPM 21.9% delivered). Management: 'years not quarters. Quarterly numbers might move, direction will not.' Expects ongoing campaigns, seasonality to cause Q volatility.

H1 capex ₹187 Cr for store network, ₹297 Cr plant. Management confident in Hyderabad scaling; international 'slowly and steadily.' No numeric capex target but trajectory clear.

INR depreciation vs RMB (₹14.2 now vs ~₹11-12 prior) drives 25%+ COGS inflation on imported frames/lenses. Impact on international segment COGS. Hedge strategy not disclosed.

Management launching/scaling 6+ brands/concepts concurrently: John Jacobs, Meller, OWNDAYS, Shunya, Hustlr, Lenskart evolv. Capex and management bandwidth stretched. Success unproven at scale.

Hustlr targets ₹500 affordable glasses with high-quality frame/lens/fitting. Competitors may copy or undercut. Margin protection unclear at volume scale.

Target 100M+ pairs/10K+ stores globally. Requires ₹297 Cr+ annual plant capex, logistics to 38 new stores/year (H1 pace). Hyderabad capacity is acknowledged bottleneck.

Revenue QoQ +4.8%, PAT QoQ +1.8% vs YoY +35.7%, +124.7%. Suggests H1 had front-loaded growth or Q2 seasonal moderation. H2 growth trajectory uncertain.