Lenskart’s Meller sunglasses are Ray-Ban of the future, says Jefferies. Here’s why Wall Street giant is bullish
Lenskart Solutions acquired Barcelona-based sunglasses maker Meller in 2025 to strengthen its premium and fashion eyewear portfolio. A year later, global brokerage Jefferies dubbed the
Lenskart Solutions acquired Barcelona-based sunglasses maker Meller in 2025 to strengthen its premium and fashion eyewear portfolio. A year later, global brokerage Jefferies dubbed the subsidiary a potential ‘Ray-Ban of the future’ following its strong performance in the June quarter.In its shareholders' letter, Lenskart's founders said Meller, which was a $35 million brand and is now on track to become a $70 million. The brand is also gaining a strong global following, with its boutique stores in Amsterdam, Barcelona and Paris establishing a presence in fashion-focused markets. Meller's Paris store reportedly sees long queues on most days of the week.Also read: Lenskart Solutions shares jump 7% after Q1 results; Jefferies, Goldman Sachs, 3 others raise target priceJefferies, with a target price of Rs 680 (16% upside), suggests that international revenue grew 38% (constant currency growth of 29%), driven entirely by volumes, while the average selling price declined due to a higher mix of sunglasses.Gross margin improved further to over 77%, while the adjusted EBITDA margin expanded by more than 6 percentage points to 10.6%, with the international business now contributing 35% of consolidated adjusted EBITDA.
“Sunglasses volumes grew at an even faster pace, partly supported by seasonality and Meller's rapidly growing online sales,” the brokerage said in a note.Analysts say the first quarter depicts how the company continues to build its story, with strong growth & sharp margin expansion. Market creation remains a top priority, with supply, rather than demand, being a key constraint in India, evidenced by over 70,000 daily eye tests. “The company now plays at the bottom end with a fully loaded Rs500 product, while a clear premiumization trend is visible.”Strong network: Lenskart added 132 net stores during the quarter, including 116 in India, taking its domestic store count to 2,725, while its international network stood at 734 stores. The company sees scope to expand to more than 10,000 stores in India. Tier 2 cities continued to perform well, with monthly sales of around Rs 17 lakh per store only slightly below the average. Lenskart conducted 7 million eye tests in Q1, up around 40% YoY, with a meaningful contribution from first-time users. AI-enabled self-eye tests have also been introduced at pilot stores and could drive incremental tests and support customer acquisition.Ray-Ban Meta’s new rival: Lenskart's smart glasses have received an encouraging response, with more than 80,000 sign-ups so far, Jefferies says.
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