Lenskart Solutions Ltd Management Discussions

1. The Market Context 1A. India

The Indian eyewear market is a nascent, fast-growing category in the early stages of its own creation. Over 700 million Indians require vision correction today, yet the current market size is estimated at approximately 894 billion. The addressable market is growing at 13% and is projected to exceed 4,000 billion by FY45. This gap is driven by two forces: the historically low penetration of eyeglasses, where a significant share of people who need corrective eyewear do not own a pair and the growing prevalence of refractive errors, accelerated by increased screen time and lifestyle evolution. When we talk about market growth, we are not describing a fixed pool of consumers switching between brands. We are describing a process of demand creation, where every new eye test, every new store in a Tier 2+ town, and every first-time customer discovering their need for vision correction expands the market itself.

This demand-supply gap is underpinned by a large and growing refractive error burden. In India alone, the affected population is estimated to exceed 943 million by 2030 and continues to rise, with a significant proportion remaining uncorrected due to affordability constraints, limited awareness, and inadequate access to optometry services. This structural disconnect between need and access reinforces the long-term opportunity for market creation.

Indias macroeconomic environment in FY26 was mixed. While overall GDP growth remained robust at an estimated 6.3 - 6.8%, consumption patterns were uneven. Urban demand slowed, driven by sustained retail inflation which climbed to 3.87% by March 2026, and high rental inflation, leading to stress in several FMCG and retail sectors where volume growth slowed to single digits 12 . Despite these broader consumption headwinds, the organised retail sector, particularly experience-led categories showed resilience, with retail growth accelerating from 4-5% at the beginning of the fiscal year to 10-11% during the festive season 3 . One of the key developments specific to the prescription eyewear industry was the Government of Indias decision to reduce the Goods and Services Tax (GST) on prescription eyeglasses and contact lenses from 12% to 5% in September 2025 4 . This policy shift demonstrates the growing size of the problem and makes essential vision care more affordable.

The recent geopolitical developments have created macroeconomic uncertainties for India and the global economy at large, marked by the devaluation of the Indian Rupee against key foreign currencies, supply chain disruptions, and potential inflation. Vision correction is a recurring need that consumers cannot defer indefinitely, and the essential, medical nature of prescription eyewear provides a natural hedge against a consumption slowdown. That said, our business also has a fashion element, which may be more exposed in such a scenario. We continue to monitor demand-side dynamics carefully for indirect effects, such as the deferral of non-discretionary purchases in a prolonged inflationary environment, as well as currency-driven operational pressures that impact our import bill, logistics, and raw material costs.

1B. International

We maintain an international footprint through our retail network across 15 countries, alongside an online presence that extends into several additional regions. Within our international markets, Southeast Asia, Japan, and the Middle East, collectively represent a combined 1,716 billion eyewear market in FY26, projected to reach 2,118 billion by FY30. While each market is distinct in its consumer behaviour and competitive dynamics, they share a common structural thread: fragmentation, dominance by traditional opticians, rising refractive error rates, and limited disruption by D2C and organised players. Within these regions, the organised and D2C segments are outpacing overall market growth, expanding at 10-14% in Southeast Asia, 7-10% CAGR in Japan, and 15-20% in the Middle East (FY25-30). This acceleration is driven by rising value consciousness, as the high cost of prescription eyewear - often 2-3x higher than India, shifts consumers toward affordable, high-quality D2C and organised players.

Southeast Asia

Southeast Asia represents a 682 billion eyewear market in FY26 with ~65% of the population requiring vision correction but only ~40% wearing prescription glasses 5 - a penetration gap that mirrors Indias opportunity. The organised eyewear market of Southeast Asia is growing at 10-14% CAGR (FY25-30).

Singapores economy grew by 5% in 2025, but advance estimates for Q1 2026 showed a moderation to 4.6% growth, with the retail sector registering uneven growth 67 . In Singapore, since the acquisition of Owndays, our combined market share has grown from ~10-25%.

Thailands economic growth slowed to an estimated 2.1% in 2025, with retail confidence dropping amid political uncertainty and slow wage growth 8 . Despite this macro unevenness, the organised D2C segment is expanding at 10-14% CAGR. In Thailand, consumers are increasingly splitting their spending between value goods and premium brands, prioritising quality and brand reputation 9 . This polarisation suits our dual-brand strategy - Lenskart for accessible value and Owndays for premium D2C, allowing organised players to formalise a highly fragmented market.

Japan

Japan is one of our key international opportunities at 787 billion (FY26). The market is undergoing a structural shift toward value-focused D2C brands. The D2C eyewear market of Japan is growing at 7-10% CAGR (FY25-30). Persistent retail inflation - with services inflation rising 2.6% YoY in early 2026, and declining real wages 10 have made consumers

more price-sensitive. The Bank of Japan noted that while the economy is growing moderately, the pressure on household spending remains high 11 . D2C market share has climbed from 25% to 31% in the last five years and is projected to reach 43% by FY30 12 . This structural tailwind directly benefits our Owndays brand, which is positioned as the leading value-focused D2C alternative. As the third-largest D2C eyewear player with 287 stores compared to 500+ for the top two competitors, the whitespace for expansion remains substantial.

Middle East (UAE and Saudi Arabia)

The Middle East represents a 174 billion eyewear opportunity in FY26 defined by high ASPs, a young, digitally-native population, and strong demand for fashion-forward eyewear. The organized eyewear market of the Middle East is growing at 15-20% CAGR (FY25-30).

The UAEs real GDP expanded by 3.9% year-overyear in early 2025, driven by a 5.3% growth in the non-hydrocarbon sector 13 . In Saudi Arabia, consumer spending surged to SAR 1.41 trillion, fuelled by experiential retail and internet penetration exceeding 95% 14 . The region is experiencing a rapid shift toward omnichannel retail, with e-commerce penetration in the UAE reaching 12-14% of total retail sales 15 .

Our omnichannel model is a natural fit for this market. However, geopolitical tensions in the broader region have introduced supply chain uncertainties and inflationary pressures on imported premium goods 16 .

2. Business Performance

FY26 validated a thesis we have been building toward for over a decade: that a vertically integrated system, where eye testing, manufacturing, supply chain, retail, technology, and brand operate as one connected platform, produces compounding returns once it reaches sufficient scale. Revenue grew 32.3% YoY to 90,023 million on a proforma basis, while EBITDA (pre-IndAS 116) grew at nearly twice that rate, up 96.7% to 10,091 million, expanding margins from 7.5% to 11.2%. PAT surged 147.7% to 5,300 million.

This was not the result of cost-cutting or one-time tailwinds. It was the structural outcome of a system where eye tests create new customers, Gold membership converts them into recurring relationships, a widening product portfolio deepens wallet share, and technology reduces the cost of serving each incremental customer. Every layer reinforced the others in FY26. The operating and financial metrics that follow explain how.

To provide our shareholders with a clear and consistent view of our underlying performance, we present our financials on a proforma basis for the historical period. This approach adjusts for the impact of our M&A activities - including the consolidation of our master-franchisee (Deaiskart), GeoiQ, and our international acquisition of Meiier - as if they were consolidated from the beginning of the respective periods.

Operating Metrics	FY26	FY25	YoY
Eye Tests Conducted (Mn)	23.8	16.0	+48.5%
Eyewear Units Sold (Mn)	35.3	28.3	+24.7%
Transacting Customer Accounts (Mn)	15.9	12.9	+22.6%
India SSSG	20.8%	15.7%	+510 bps
India SPSG	27.3%	20.5%	+680 bps
Active Stores	3,327	2,724	+22.1%
Net Stores Added	603	335	+80.0%
Active Gold Members (India, Mn)	8.8	6.8	+29.5%
Gold Subscription Fees (India, Mn)	1,995	1,080	+84.7%
India NPS	79.8	78.5	+ 1.3 pts
Next Day Delivery Cities (India)	78	40	+95.0%
Financial Metrics	FY26	FY25	YoY
Revenue ( Mn)	90,023	68,030	+32.3%
Product Margin %	69.1%	68.9%	+30 bps
EBITDA (pre-IndAS 116) %	11.2%	7.5%	+367 bps
PAT Margin %	5.9%	3.1%	+275 bps
ROCE (ex-IPO proceeds)	23.1%	13.8%	+922 bps

Note: FY25 PAT is adjusted to exclude the one-time, non-cash FVTPL gain of 1,672 Mn (in Other income, related to deferred consideration on the Owndays acquisition).

2A. Eye Tests: The Top of the Funnel

Eye tests are the single most important leading indicator of our business. Every customer relationship begins with an eye test - it is the moment latent need converts into active demand. In FY26, we conducted 23.8 million eye tests globally (+48.5% YoY), with 20.7 million in India alone (+54.3%). Nearly half of all India eye tests were first-time exams, meaning we are not merely serving existing demand but creating new customers who did not previously know they needed glasses.

This growth was enabled by three reinforcing investments:

First, remote optometry , our Al-enabled platform that allows centrally located optometrists to conduct precise eye tests for customers hundreds

of kilometres away - scaled from 168 stores at FY25-end to 623 stores by FY26-end in India, a 3.7x expansion in a single year. Our Centre of Excellence in Kolkata acts as a hub for this model, enabling optometrists to conduct eye tests for customers across locations with a high degree of efficiency and quality. Internationally, remote eye testing is now live in Japan and launching across Southeast Asia, bringing our total global remote optometry footprint to 908 stores. This directly unlocked Tier 2+ markets in India and underpenetrated prefectures in Japan where full-time optometrists are scarce.

Second, we enabled eye tests for children aged 8+ across all India stores, powered by proprietary technology that validates multiple prescriptions and applies child-specific modifications, helping us identify vision correction needs earlier and expanding the addressable population.

Third, our store expansion itself, 603 net new stores globally (542 India, 61 international) brought eye-testing infrastructure physically closer to millions of potential customers in underpenetrated markets across geographies.

The financial logic is direct: more eye tests ^ more first-time customers ^ more volume ^ more revenue. Eye tests are the upstream driver that explains the 24.7% growth in eyewear units sold and the 22.6% growth in transacting customer accounts.

2B. Same-Store Growth and the Customer Franchise

Once a customer enters the system through an eye test, our model is designed to deepen that relationship over time. The clearest evidence that this is working is same-store sales growth - both in India and international markets.

In India, we delivered 20.8% SSSG in FY26. More importantly, Same-Pincode Sales Growth (SPSG) ran at 27.3%, a full 645 basis points above SSSG. This gap is a critical signal: it confirms that new stores in the same micro-market are creating incremental demand rather than cannibalising existing stores. Each additional store improves proximity, convenience, and trust - and the entire pincode grows.

Internationally, the same dynamic is playing out. With only 61 net new stores added in FY26, the majority of international revenue growth of 30.2% was same-store-driven. In Singapore, the dual-brand strategy (Owndays for premium, Lenskart for accessibility) is deepening wallet share within existing catchments. Japan continues to deliver strong same-store growth with improving unit economics.

One of the key engines behind this same-store compounding is the customer franchise we are building through Gold membership. Active Gold members in India reached 8.8 million (+29.5% YoY), generating 1,995 million in subscription fees (+84.7%). Compared to the India industry average of 1.8 eyeglasses over a two-year period, customer accounts acquired in our FY23 cohort achieved double the volume at 3.6 eyeglasses. Driving this impressive growth is our Gold membership programme, where members purchase at a meaningfully higher frequency. This repeat behaviour is the core of our compounding model: it generates revenue without incremental acquisition cost and deepens wallet share as customers move across frames, lenses, sunglasses, and contact lenses over time. Internationally, we have introduced the Gold membership model in Singapore and are evaluating its extension to other markets.

India ASP grew 6.3% YoY to 1,827, reflecting continued premiumisation as customers choose better design, stronger lens features, and more occasion-led products. Our International segment, where ASP runs at approximately 3x India levels, benefited from the depreciating against the respective local currencies. The segment grew 20% YoY on a constant-currency basis, while ASP remained stable, on a constant currency basis, over the same period.

2C. New Store Expansion

In FY26, we added 603 net new stores globally - 542 in India (nearly double FY25s 282) and 61 internationally, taking our total active store count to 3,327 across 16 countries. We entered 157 new cities in India, expanding our presence to 556 cities.

India

This expansion was guided by two signals: demand remains underpenetrated even in established markets, and the Tier 2+ opportunity is structurally deeper than anticipated. Tier 2+ markets accounted for 254 of the 542 net new stores (nearly 3x FY25s 89) - markets where organised eyewear retail is nascent and a Lenskart store creates demand rather than competing for it. Our early Tier 2+ cohorts have shown a high share of first-time eyewear buyers, robust revenue per store, and payback under 12 months. Towns like Saharsa in Bihar, Shahdol in Madhya Pradesh, Golaghat in Assam, and Jhargram in West Bengal each delivered ~16-17 lakhs per month in revenue, confirming that the deeper we go, the larger the underserved market we find.

Our GeoIQ platform which analyses over 3,000 variables including satellite imagery, mobility patterns, localised economic data, and a cannibalisation model made every store-opening decision data-driven. The cannibalisation model was materially strengthened in FY26, enabling us to densify aggressively while sustaining strong same store growth. GeoIQ analysis identifies potential for approximately 4,500 additional store locations in India, of which roughly 3,000 are in Tier 2+ markets, confirming that we are still in the early stages of our India expansion. India has approximately 60 optical stores per million people versus over 1,200 jewellery stores per million - the structural whitespace remains vast.

As we scale, we are increasing focus on CoCo (Company Owned, Company Operated) execution, particularly where greater control over premium feel, service consistency, brand presentation, and customer experience is important. Operating cash flow largely funded the accelerated store rollout.

International

We added 61 net new stores internationally, taking our international active store count to 718. The pace was deliberately measured - the majority of international revenue growth was same-store-driven. Each market operates at a different lifecycle stage: Singapore is established with market leadership; Japan is scaling with improving unit economics and whitespace in underpenetrated prefectures identified by GeoIQ; Thailand is in growth mode with the Lenskart brand introduction alongside Owndays; and Saudi Arabia is in its investment phase, building the platform for future growth. In the Middle East, we operate 41 stores with revenue doubling over the last two years.

2D. Merchandising, Product Mix, and Premiumisation

We operate a House of Brands - each serving a distinct customer cohort, price point, and occasion - on a shared integrated platform. This architecture allows us to serve the full spectrum of eyewear demand across geographies: from first-time buyers seeking affordable eyewear, well-designed frames to premium customers seeking design-forward, technology-led products.

Our brand and sub-brand portfolio includes Lenskart AIR (comfort-led), Vincent Chase and Hustlr (value and first-time buyer), John Jacobs, Owndays, LPL, and Meller (premium and design-led), Hooper (kids), and Aqualens (contact lenses). Across these brands, our 100+ member in-house design and merchandising team launched 100+ new collections globally during FY26, translating real-time consumer insights into innovative styles using advanced computer-aided design.

We engineer precise geometries to ensure optimal fit across diverse facial profiles, driving functional innovations like Turban Fit, ultra-flexible Twyst hinges, and the durable Creatr kids range. Simultaneously, we tailor fashion aesthetics to regional tastes - from minimalist styles in Singapore to premium Celestia, Gilded, and Luxury Sun Edit collections in the Middle East, and fashion-forward Pop Mart collaboration in Thailand. This multiplicity, empowering consumers to own multiple pairs for different outfits, occasions, and needs is a key driver of purchase frequency across all our markets.

Product collaborations deepened cultural relevance across consumer cohorts globally. Partnerships with Pop Mart, Stranger Things, Harry Potter, Sanrio (Hello Kitty), and Disney drove strong engagement among younger audiences. Owndays partnership with DITA Lancier, one of the most respected luxury eyewear houses globally, continues to anchor our premium positioning internationally. These collaborations signal that Lenskart is present where consumers spend attention: culture, collectibles, and self-expression.

Premiumisation is accelerating. The share of India revenue from orders above 10,000 grew to 20.5%. In FY26, driven by higher adoption of premium frames, progressive lenses, advanced coatings, and branded offerings such as Owndays and Rodenstock lenses manufactured in our own facilities. This premiumisation is not forced through pricing - it is an outcome of better product, deeper trust, and a portfolio that gives customers reasons to trade up as their relationship with the category matures.

Meller, our Barcelona-based, digitally native sunglasses brand acquired in FY25 is now available across 1,000+ Lenskart stores in India and all Middle East stores, with dedicated brand stores opening. International sunglasses volumes grew 36.3% YoY, filling a historical white space in our portfolio. Meller demonstrates our ability to identify, acquire, and scale brand assets globally on the Lenskart platform - a playbook we intend to repeat.

Contact lenses represent an adjacent growth vector with high repeat frequency. Quick-commerce delivery for contact lenses is live in Singapore (two-hour delivery), and we are expanding same-day and next-day delivery for contacts domestically. The category benefits from convenience-driven purchasing behaviour that aligns naturally with our omnichannel infrastructure.

2E. Online and Omnichannel

Lenskart is an omnichannel platform, and the strength of that platform is increasingly evident in the numbers. ~50% of FY26 India revenue was digitally influenced (up from ~45% in FY25) - a number that reflects not just online purchases, but the full arc of omnichannel customer behaviour: customers who discover, compare, or consult digitally and then complete their purchase in-store, and equally, in-store customers who return to buy their next pair on the app. Digital is not a separate channel - it is the demand-generation layer that makes our store network more productive.

Our App

Our app has crossed 120 million cumulative downloads in India (up from 101 million in FY25). Unlike many commerce apps, the Lenskart app is not merely a catalogue. In eyewear, customers need confidence in fit, prescription, style, price, and service before they purchase. The app supports this journey through virtual try-on, frame measurement, AI-led recommendations powered by face-scan technology), customer reviews, appointment booking, eye-test records, store location, order tracking, and repeat engagement. We are building the digital platform for global markets with local language support, such as Arabic and Thai, regional payment options, and market-specific online journeys that build trust across geographies while retaining the strength of one integrated platform.

In-Store Operations

We are systematically moving towards a self-service model in our stores, reducing wait times, improving throughput, and elevating the customer experience. Face-recognition-based self-check-in is now live. Self-checkout for contact lenses is live in select international markets. AI-based frame recommendation is active in-store, providing personalised suggestions based on face shape and prescription history. We have also introduced a store pick-up facility for online orders, and digitised planograms now provide real-time visibility into in-store merchandising.

Digitally influenced demand transforms our unit economics by boosting store productivity beyond basic foot traffic, scaling online revenue efficiently, and using our app to anchor Gold-led repeat behaviour. This ecosystem directly materialised in our financial results, unlocking same store sales growth.

Home Try-on (HTO)

For customers who cannot visit a store, whether elderly, mobility-constrained, or simply preferring the convenience of home - our HTO service brings the store to them. A vision care professional visits the customer at home, brings a curated set of frames, performs a 12-step eye check, and helps the customer choose and order. In FY26, HTO operated across 1,000+ pin codes, with conversion rates meaningfully above walk-in or purely digital rates and NPS higher than the overall India average.

2F. Technology and AI: The Operating System Behind the Numbers

Built and maintained by over 500 technology professionals across AI/ML, engineering, computer vision, robotics, and supply-chain systems, our technology infrastructure is not a support function - it is the operating system that powers every aspect of our business. In FY26, we made significant strides in deploying AI across both market creation and cost reduction, with a direct and measurable impact on the customer experience. At the core of this performance lies a deeply integrated technology ecosystem that connects every stage of the customer journey - where every eye test, every face scan, every transaction, and every delivery feeds into a learning loop that compounds with scale.

Creating More Market

• Remote optometry as a market-creation engine. Our Al-enabled remote optometry platform was one of the key enablers of the 54.3% growth in India eye tests, with nearly half being first-time exams - each one a new customer entering the eyewear category.

• GeolQ: predictive site selection and

cannibalisation modelling. Our proprietary platform guided 542 net new India stores while sustaining 20.8% SSSG and 27.3% SPSG - the 645-basis-point gap being evidence that densification is unlocking incremental demand rather than redistributing existing demand.

• Facial recognition and personalised discovery. Over 100,000 face scans daily create unique customer profiles, enabling self-check-in, AI-based frame recommendations tailored to face shape and prescription history, and a dramatically improved in-store experience.

Reducing Cost to Serve

• In-store self-service and AI scheduling. Face-re cognition-based self-check-in, self-checkout for contact lenses, AI-driven floor scheduling, and digitised planograms (live in 1,000+ stores) allow stores to handle higher footfall without commensurate headcount additions.

• Routing and fulfilment intelligence. AI-driven route optimisation expanded next-day delivery from 40 to 78 cities (+95%) without proportionate cost increases.

• Manufacturing AI. We acquired a 29.2% minority stake in South Korean startup iiNeer (~189 million) to develop next-generation AI-enabled eye testing and lens edging equipment, integrating these solutions into our manufacturing and piloting quick-commerce delivery for prescription eyeglasses.

Smart Glasses - From Eyewear to Eyewear + Data

In Q4 FY26, we launched B by Lenskart - our AI-powered, prescription-lens-capable smart glasses built on a Qualcomm AR1 chip with Google Gemini Live integration, enabling photo and video capture, and real-time multilingual AI dialogue. Beyond these core features, B supports multilingual voice commands, food logging and calorie tracking, hands-free navigation, and seamless switching between prescription and non-prescription lenses - making it a genuinely everyday wearable rather than a specialist device. Over 30,000 customers have joined the waitlist so far, and we are scaling in deliberate phases, using each cohort to refine the product through continuous firmware and software updates. It is our first step in a broader conviction that the eyewear frame, as the interface between technology and the human face, can play a progressively larger role in customers lives beyond vision correction.

Financial Outcome. The cumulative effect of these technology investments was visible in FY26: employee cost as a percentage of revenue declined 110 basis points, marketing declined 190 basis points (experience-led NPS driving pull rather than paid acquisition), and other expenses (ex-marketing) declined 130 basis points. EBITDA grew at nearly twice the rate of revenue - the structural outcome of a system where each incremental customer is served at progressively lower marginal cost.

2G. Manufacturing and Supply Chain

Our manufacturing and supply chain infrastructure is the structural backbone that protects margins, enables speed, and supports premiumisation, across both India and international markets. In FY26, this infrastructure scaled meaningfully.

Prescription eyeglasses manufacturing demands extreme optical precision, from sub-micron computer-guided surfacing to the application of specialised protective coatings. Our fully automated lens manufacturing line operates with limited human intervention, ensuring uncompromising quality control while keeping total costs significantly below the industry average. Frame manufacturing, which began through a joint venture in China in 2017, has been progressively brought in India with mould design and manufacturing capabilities at our Bhiwadi facility.

Lenskart in-house Manufacturing	FY26	FY25	FY24
Prescription Eyeglasses manufactured (Mn)	17.5	13.2	10.1
In-house Frames manufactured (Mn pairs)	7.8	6.5	5.3
In-house Lenses manufactured (Mn units)	5.6	4.1	2.5

*includes frames manufactured at our Joint Venture

This vertical integration directly protected product margin at 63.7% in India, despite INR - RMB depreciation pressure on imported components. Without backward integration, currency volatility would have been a visible margin drag. Instead, increased in-house manufacturing, scale-driven vendor negotiations, and premiumisation of mix absorbed the pressure.

Internationally, supply chain integration is the primary lever for margin expansion. The International/India average cost of production ratio declined from 2.2x in FY24 to 2.1x in FY26, while premium ASPs were maintained - the mathematical result is steady, compounding product margin expansion (76.0% in FY26, up from 74.7% in FY25). In markets where integration is most advanced, such as Singapore and UAE, product margins are trending toward ~80%, providing a clear and repeatable pathway.

Hyderabad facility

Our Hyderabad facility remains on track for commissioning in 15-18 months. It will meaningfully boost prescription eyeglasses manufacturing capacity, deepen backward integration in frames, lenses, and components, and create manufacturing redundancy and export capability.

Thailand JV

In Q3 FY26, we announced our 50% joint venture with Sunrise (Matt Optical Co., Ltd), a Thailand-based frame manufacturer, to strengthen in-house frame manufacturing capacity. Indias zero-duty trade arrangement with Thailand provides a meaningful cost advantage.

We expect manufacturing to remain a sustained lever for both EBITDA margin and customer experience over the coming years - in India through deeper backward integration and automation, and internationally through progressive supply chain convergence.

2H. Brand

The clearest evidence that our brand is compounding is in the P&L. Our House of Brands strategy enables Lenskart to address every major price segment while maintaining a consistent focus on product quality. This positions us to capture both the accessible segment (16.2% of FY26 revenue) and the premium market, with premium brands including John Jacobs and Owndays driving premiumisation and increasing the share of high-ticket orders (>10,000) to 20.5% of FY26 revenue.

Marketing as a share of India revenue stepped down from 7.6% in FY25 to 5.7% in FY26 - a 190-basis-point improvement, even as absolute marketing investment grew. This reflects a pull-driven, word-of-mouth-led brand where the majority of new customers come through organic channels rather than paid acquisition.

One of the key drivers is customer experience. India NPS reached a full-year average of 79.8 (up from 78.5 in FY25), with Q4 reaching an all-time high of 81.4. Every accurate eye test, timely delivery, smooth store interaction, and efficient post-purchase resolution strengthens advocacy. Lenskart was recognised as Indias Most Trusted Eyewear Brand of 2025 by TRA Research. Next-day delivery across 78 cities, AI-enabled return and warranty processing, and face-recognition-enabled self-check-in all contributed to this NPS improvement.

Internationally, brand-building investments are translating into measurable consumer pull. The Takuya Kimura campaign in Japan, one of the countrys most iconic actors, alongside collaborations with Sanrio (Hello Kitty), Disney (Frozen, Zootopia), and Stranger Things drove engagement. In Thailand, our partnership with Baifern Pimchanok reinforced our positioning around style and design. Owndays partnership with DITA Lancier anchors

our premium positioning globally. In the Middle East, Mellers launch with leading regional influencers and culturally aligned collections built relevance.

We also elevated store design in FY26, including a complete refresh of our store template and the opening of 15 flagship experiential stores - brand-building investments that create a halo effect on customer perception across markets.

The financial connection: brand pull enables marketing leverage (India marketing cost down 190 bps), Gold-led repeat behaviour reduces re-acquisition cost (subscription fees up 84.7%), and NPS-driven word-of-mouth is the primary engine of new customer acquisition. Together, these dynamics allow revenue to scale faster than marketing spend - a structural advantage that compounds over time and is now beginning to replicate internationally as brand awareness matures in each market.

3. Financial Performance

To provide shareholders with a clear and consistent view of underlying performance, we present financials on a proforma basis for the historical period. This approach adjusts for the impact of M&A activities, including the consolidation of Dealskart, GeoIQ, and Meller - as if they were consolidated from the beginning of the respective periods. From Q3 FY26 onwards, there is no difference between Consolidated and Proforma financials. The table below presents both our Consolidated and Proforma consolidated financials.

	Proforma Financial Information			Consolidated Financial Information
	FY26	FY25	YOY	FY26	FY25	YOY
Revenue	90,023	68,030	32.3%	88,140	66,525	32.5%
EBITDA	17,895	11,525	55.3%	17,486	9,711	80.1%
EBITDA Margin %	19.9%	16.9%	2.9%p	19.8%	14.6%	5.2%p
EBITDA (pre-IndAS 116)	10,091	5,130	96.7%	9,682	3,778	156.5%
EBITDA (pre-IndAS 116) %	11.2%	7.5%	3.7%p	11.0%	5.7%	5.3%p
PAT	5,300	2140	147.7%	5,010	1301	284.9%
PAT Margin %	5.9%	3.1%	2.7%p	5.7%	2.0%	3.7%

Note: FY25 PAT is adjusted to exclude the one-time, non-cash FVTPL gain of 1,672 Mn (in Other Income, related to deferred consideration on the Owndays acquisition).

FY26 was the year our financial performance decisively validated the operating leverage thesis. Consolidated revenue grew 32.3% YoY to 90,023 million, EBITDA (pre-IndAS 116) expanded 96.7% YoY to 10,091 million, and PAT surged 147.7% YoY to 5,300 million. This growth was entirely volume-led - eyewear units sold grew 24.7% and transacting customer accounts grew 22.6%. EBITDA (pre-IndAS 116) grew at nearly twice the rate of revenue, expanding margins from 7.5% to 11.2% - a 367-basis-point expansion that is the mathematical proof of structural operating leverage.

3A. India Segment

India delivered 52,648 million in revenue (+33.7% YoY) on a proforma basis. Performance was led by four mutually reinforcing factors: (A) sustained volume expansion driven by eye-test infrastructure and online channels; (B) a deepening customer franchise built around Gold membership and a refreshed brand-and-product portfolio; (C) a modest ASP step-up driven by mix and base normalisation; and

(D) continued strengthening of customer experience, powered by stronger store and post-order execution.

This growth was fundamentally volume-led, as we expanded access to eye tests - evidenced by 54.3% YoY growth in eye tests to 20.7 million, with nearly half being first-time exams. By bringing new customers into the category, we are creating market demand for the future.

India proforma P&L (% of Revenue)

	FY26	FY25	Delta
Product Margin	63.7%	63.6%	+ 10 bps
Employee Cost	18.2%	19.3%	-110 bps
Marketing	5.7%	7.6%	-190 bps
Other Expenses (ex-Marketing)	19.5%	20.8%	-130 bps
Rent (IndAS 116 adjustment)	6.0%	6.2%	-20 bps
EBITDA (pre-IndAS 116)	14.3%	9.8%	+450 bps

India EBITDA grew 70.0% YoY to 10,675 million, with EBITDA margin at 20.3%. EBITDA (pre-IndAS 116) grew 95.8% YoY to 7,535 million, with margin expanding to 14.3% from 9.8% - a 450-basis- point expansion.

• Product margin held steady at 63.7% on a like-for-like basis. On an underlying basis, this margin would have improved further; however, Rupee depreciation against the RMB on imported components was a partial drag, absorbed through increased vertical integration, premiumisation of mix, scale-driven vendor negotiations, and continuous operational improvements.

• Employee cost improved 110 bps as floor-management improvements, AI-driven

scheduling, and reduced eye-test cycle times allowed stores to handle higher footfall without commensurate headcount additions. Strong same-store growth, combined with continued ramp-up of newer stores, translated into operating leverage on our largely fixed in-store and central headcount.

• Marketing improved 190 basis points better YoY. Marketing rose in absolute terms, but its share of revenue continued to step down, reflecting the pull-driven nature of our brand - NPS of 79.8 and a growing repeat-customer base remain the primary acquisition engine.

• Other Expenses (ex-Marketing) were 19.5% of revenue in FY26 (130 basis points better YoY). Two drivers primarily explain most of the

leverage: first, the FoFo-to-CoCo store-mix shift continued through FY26, reducing commission and incentive expenses to franchisee partners as a share of revenue; second, technology, supply chain, and corporate overheads leveraged as

similar fixed infrastructure supported a much larger revenue base.

Rent stepped down 20 bps as SSSG of 20.8% outpaced typical annual rental escalations of ~5%.

3B. International Segment International Highlights (proforma basis)

International segment delivered 37,896 million in revenue (+30.2% YoY) on a proforma basis. On a constant-currency basis, revenue growth was ~20% YoY. Growth was primarily same-store-driven with only 61 net new stores added. Growth benefited from three reinforcing levers: (A) sustained volume expansion led by prescription eyeglasses (+20.3% eyewear units YoY); (B) high sunglasses growth led by Meller (+36.3% volumes YoY); and (C) continued online growth strengthening the omnichannel flywheel.

Sunglasses was a standout growth driver, with international sunglasses volumes growing 36.3% YoY. Meller - acquired in FY26 and scaled across the Lenskart distribution network - filled a historical white space where sunglasses had been under-represented and is on track to become a leading sunglasses brand for the next generation of consumers. We have also begun opening few dedicated Meller brand stores, which serve as powerful brand-building anchors for the sunglasses category and deepen consumer

mindshare beyond what shop-in-shop presence alone can achieve.

Online continued to grow strongly as a key discovery and acquisition engine. Our omnichannel investments in Singapore, UAE, and Thailand - app-led customer journeys, expanded online assortments, and hyper-local innovations like quick-commerce contact lens delivery are bringing higher-intent customers into our physical stores, kicking the omnichannel flywheel into motion.

Within our international markets, Japan continued to deliver strong same-store growth with improving unit economics. Singapore maintained its position as the leading eyewear brand in the country. Thailand delivered robust performance. The Middle East grew strongly with revenue doubling over the last two years. Saudi Arabia and newer markets are in their investment phase, building the platform for future growth.

International proforma P&L (% of Revenue)

	FY26	FY25	Delta
Product Margin	76.0%	74.7%	+ 130 bps
Employee Cost	29.0%	30.6%	-167 bps
Marketing	9.8%	8.6%	+121bps
Other Expenses (ex Marketing)	17.9%	18.1%	-20 bps
Rent (IndAS 116 adjustment)	12.3%	13.6%	-131 bps
EBITDA (pre-IndAS 116)	7.0%	3.6%	+335 bps

International EBITDA (pre-IndAS 116) grew 151.1% YoY to 2,639 million, with margin expanding to 7.0% from 3.6%, a 335-basis-point expansion was the underlying customer-led driver, with eyewear units growing 20.3% YoY in FY26.

• Product margin expanded structurally to 76.0% (vs 74.7% in FY25), driven by supply-chain integration across Owndays and Meller. In markets where integration is most advanced, such as Singapore and UAE, product margins are trending toward ~80%, providing a clear and repeatable pathway for further expansion.

• Employee cost improved 167 bps as same-store revenue growth and online growth drove leverage.

• Marketing - we have intentionally invested ahead of revenue in international markets to build brand infrastructure. Brand-building investments - the Takuya Kimura campaign in Japan, Owndays partnership with DITA Lancier, the Lenskart x Nani Lucky Fans event in Thailand, and Mellers launch in the Middle East translated into measurable consumer pull across geographies and consumer cohorts.

• Other Expenses (ex-Marketing) as a percentage of revenue remained broadly stable year-on-year, with underlying operating leverage offset by a base-period effect: Q4 FY25 had benefited from a favourable Fair Value Through Profit and Loss (FVTPL) movement on the Owndays deferred consideration, creating an optically lower comparable base.

• Rent stepped down from 13.6% to 12.3%, reflecting strong same-store growth and a measured pace of new lease additions.

3C. Consolidated PAT

Consolidated proforma PAT grew 147.7% YoY to 5,300 million. PAT margin expanded to 5.9% from 3.1% (adjusted). EBITDA margin expansion of 294 bps (16.9% to 19.9%) was the primary driver of the 275-bps PAT margin expansion. Depreciation and amortisation as a share of revenue declined from 12.7% to 11.7% as strong same-store growth leveraged the existing fixed-cost base. Other Income for the year was 1,745 million, a modest 9.3% YoY decline reflecting lower yields on mutual funds and bonds, partially offset by higher interest income on primary capital infused.

3D. Cash Flow and ROCE

We generated operating cash flows of 8,867 million in FY26 (consolidated), representing ~91% of EBITDA (pre-IndAS 116). Even with a near-doubling of India net new store additions, operating cash flow comfortably funded the accelerated store rollout, store upgrades, and manufacturing capex, including investment toward the Hyderabad facility. The business walked out of FY26 with positive net cash flow pre-M&A and IPO of 343 million. Growth and investment are both being funded from within the business.

Cash Flow pre M&A and IPO - FY26 ( Mn)	FY26
EBITDA (pre IndAS 116)	9,701
Non-cash adjustments	657
Change in Working Cap	983
Tax	(2,473)
Operating Cash Flow	8,867
Store Capex	(4,188)
Operating CF post store capex	4,678
Other Income and Financing Cost	(292)
Plant and Other Capex	(4,043)
Net Cash Flow pre M&A & IPO	343

Working capital released 983 million, driven primarily by inventory days reducing from 59 days at FY25-end to 43 days at FY26-end as strong customer demand pulled through stock faster than replenishment. We expect inventory days to normalise upward as we rebuild stock to support FY27 demand. Receivable days (7) and payable days (39, excluding IPO-related payables) remained consistent with prior periods.

Net cash balance (excluding IPO-related payables and interest accrued but not received) stood at 38,808 million as of FY26-end.

ROCE expanded materially. FY26 Return on Capital Employed was 14.7% on a consolidated basis. Excluding undeployed IPO proceeds, FY26 ROCE was 23.1% - an expansion of 922 bps vs the prior year. ROCE has expanded from negative levels in FY23, reflecting both EBIT growth and disciplined capital allocation. We continue to target ROCE expansion as our central infrastructure operates at higher utilisation.

Please refer to Page 469-470 for details on Financial Ratios.

4. Business Outlook

FY26 has been a defining year - but this is not the peak. We are serving 50 million people in a world where billions need better vision. The opportunity widens as we go deeper.

Sustaining growth through non-linear customer acquisition.

Our ambition is not 30 million eye tests - it is 100 million, and eventually a billion. We will continue to invest in improving optometrist productivity, scaling remote and self-optometry, and bringing high-quality eye testing within reach of everyone. To reach 100 million, we cannot think incrementally. Our mandate is to accelerate new customer acquisition and remove every point of friction between a person who needs glasses and one who has them - unlocking entirely new cohorts of consumers at scale. We will drive Lenskart deeper into all our markets, innovating on products, formats, access points, and pricing models.

The integrated system - connecting every layer with intelligence.

We will wire AI into the connections between every layer of our value chain - not just within individual functions. Eye-test data should automatically inform product design. A shift in social trends should reach manufacturing in days, not weeks. On the factory floor, robotic AI will take us from 75% towards near-full automation - with machine vision enabling automated lens punching and AI-driven routing making same-day delivery possible for made-to-order products.

Building a global consumer brand.

Our vision is to build the definitive global consumer platform for eyewear - a house of brands, each serving a distinct cohort and occasion. We are stepping up investments in global collaborations, forging partnerships with cultural icons whose appeal transcends geographies - whether through cultural moments like The Devil Wears Prada 2, or bringing phenomena like Pop Mart to India. Coupled with our proven ability to execute strategic M&A - as demonstrated by Meller - these alliances allow us to continuously elevate our offerings and build a brand that is relevant to the world.

An AI-first operating model.

FY26 marked an inflection point in AI. The speed of innovation has compressed so dramatically that the rules of what a company can build - and how fast - have fundamentally changed. For a company that owns the entire value chain from eye test to delivery, this is not an incremental opportunity - it is a step-change. The more of the value chain we own, the more AI can do for us. In FY27, we are embedding AI into the culture of the organisation - not as a tool for a few, but as a way of working for everyone, at every level and in every function. We are also clear-eyed about what AI cannot yet do - prescribing for a child requires clinical judgment, and earning trust requires warmth.

Evolving stores into multi-role community hubs.

Our stores will be far more than showrooms - they will be the neighbourhood hub for every eyewear need, much like a local chemist serves its community: fast, simple, and always there. A store within a few kilometres of the customer is a place to try frames, get an eye test, pick up an online order, or have glasses serviced - a warehouse, a clinic, a service centre, and a last-mile node, all in one. As quick commerce reshapes consumer expectations, our 3,300+ store network becomes a structural logistics advantage that is challenging to replicate.

Investing in new form factors.

Eyewear sits on the face for twelve or more hours a day - no other consumer device has that kind of persistent proximity. We will continue to innovate in smart eyewear through B by Lenskart. Lenskart has a structural advantage that we believe is distinctive relative to pure-play technology firms: 3,300+ stores where consumers can experience the product and get it serviced, combined with our core prescription capability because eventually, most smart glasses will need prescriptions. Revenue upside is not factored in the near term, but our position as both a technology company and an eyewear company makes this a unique natural opportunity.

Reinventing customer experience end-to-end.

The majority of new customers come through word of mouth. We will keep reinventing every step of the journey. On the app: enhanced discovery, personalisation, and virtual try-on, underpinned by data and AI. In the store: AI-powered planogramming and RFID will transform how customers navigate, and we will make the eye-test experience more seamless. Post-order: next-day delivery across 78 cities and expanding. In the product: advanced lens coatings, digital protection, and myopia management. Nothing is static. If at any point we feel the experience is slipping, we will slow down, fix it, and only then scale again.

Growth expectations.

Our orientation remains to think in decades, build patiently, and let compounding work over multi-year horizons. While the last few quarters have delivered accelerated growth, we urge investors not to use any single quarter as the base expectation. We encourage shareholders to track annual volume growth as the cleanest yardstick of underlying market expansion - it strips out ASP mix effect, currency translation, and campaign timing, and most directly reflects the customers we are bringing into the category. The compounding will continue. We are still very early in this journey.

Operating expectations.

Net new store additions in FY27 are expected to be at or around FY26 levels. On profitability, our long-term steady-state EBITDA (pre-IndAS 116) margin expectation remains unchanged at ~25%. In the near term, growth and margins may vary, shaped by an increasingly complex global environment marked by geopolitical uncertainty and potential supply-side risks, as well as internal choices such as store-opening phasing, marketing seasonality, and the long-term bets we choose to make ahead of the curve. The compounding effect of revenue and margin will continue, but we will always prioritise actions for long-term value creation over short-term linearity.

5. Opportunities

Latent demand

The gap between the 700 million Indians needing vision correction and the current market size represents a multi-decade growth opportunity. With 2,609 stores as of Mar26 in India and approximately 4,500 additional locations identified by GeoIQ, we are in the early stages of our India expansion.

Premiumisation and category expansion

Consumers are increasingly viewing eyewear as a fashion accessory, driving higher purchase frequencies and premiumisation. Contact lenses, sunglasses, smart eyewear, and advanced lenses each represent meaningful category expansion opportunities on our existing platform.

AI as a compounding advantage

Deploying AI across hiring, customer service, store operations, and supply chain presents a continuous opportunity to reduce cost-to- serve while improving the customer experience. Each AI deployment generates data that makes the next deployment more effective. The more of the value chain we own, the greater the surface area for AI to act on.

Next generation of eyewear brands

The global eyewear industry has produced remarkably few enduring consumer brands relative to its size. The rise of D2C distribution is opening that opportunity, and our integrated platform - manufacturing, supply chain, and omnichannel retail, gives us a structural advantage in building or acquiring brands and scaling them globally. Meller is the first proof point; the playbook is repeatable.

Sunglasses category

The Gen Z and millennial demographic presents a massive opportunity for new-age sunglasses brands like Meller, particularly in sun-rich markets like the Middle East and India. Sunglasses are a fashion-driven, high-frequency purchase category that significantly expands our total addressable market beyond prescription eyewear.

International expansion

Our international markets today collectively represent a 1,716 billion addressable opportunity. With our proven playbook, technology infrastructure, and supply chain already in place, the incremental cost of expanding internationally is significantly lower than building from scratch.

6. Risks and Threats

As we scale, we remain cognisant of the evolving risk landscape and have built mitigation frameworks aligned with our operating model.

Risk/Threat	Description	Mitigation
Competitive Intensity	Increasing participation from organised and unorganised players across markets	Vertically integrated model with structural cost and speed advantages; brand pull reducing dependence on promotional spending
Macroeconomic Fluctuations	Currency volatility, inflation, and consumption slowdowns across markets	Essential, medical nature of prescription eyewear provides natural demand resilience; 42% international revenue provides currency diversification; backward integration absorbs input cost pressure
Supply Chain Concentration	Dependence on specific manufacturing hubs and import corridors	Multi-site manufacturing (Bhiwadi, Hyderabad, Thailand JV); progressive backward integration; RFID-enabled inventory visibility
Customer Experience at Scale	Risk of inconsistent experience as network scales rapidly	NPS-led feedback loops; AI-driven store operations; centralised training systems; selfservice technology reducing human variability
Technology and Data Security	Cybersecurity risks associated with customer data, facial recognition, and AI systems	Enterprise-grade security infrastructure; data privacy compliance across jurisdictions; regular third-party audits
Human Capital	Ability to attract, retain, and develop specialised talent across geographies	AI-enabled hiring improving talent density; local-first international teams; acqui-hire strategy for specialised capabilities
Regulatory and Compliance	Evolving regulations across 16 countries including data privacy, healthcare, and trade policy	Dedicated compliance teams per jurisdiction; proactive engagement with regulatory developments; diversified sourcing to mitigate trade policy risk

Human Resources and Industrial Relations

We have built our team for first-principles problem-solving rather than category orthodoxy. Our merchandising leadership has come from lifestyle businesses; our supply-chain leadership combines manufacturing, automation, and software backgrounds; our analytics, engineering, and AI teams are deep enough that we have built our own warehouse-management systems, routing algorithms, and remote-optometry stack. The diversity of the talent base is itself a strategic choice - it allows us to think originally about category problems and arrive at solutions like GeoIQ, remote optometry, and self-eye-test technology.

We are intentionally local-first wherever we operate internationally. Each market has its own customer-facing, design, and merchandising teams - calibrated to local face shapes, design preferences, and cultural moments - sitting on top of a unified global supply chain, technology, and design platform. Across our international footprint, our workforce represents over 30+ nationalities, reflecting the local-plus-global character of how we operate.

As of March 2026, Lenskart employed 21,859 permanent employees globally. Women comprised approximately 36% of our workforce. Industrial relations remained cordial throughout the year, with no significant disruptions to operations.

Internal Control Systems

The Company maintains a robust system of internal controls commensurate with its size and the nature of its operations. These controls are designed to provide reasonable assurance regarding the safeguarding of assets, the prevention and detection of fraud and errors, the accuracy and completeness of accounting records, and the timely preparation of reliable financial information. The internal control framework is regularly reviewed and updated to address evolving business complexities and regulatory requirements.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws, and other statutes and incidental factors.

References

1 Economic Survey 2025-26, Government of India - GDP growth projections and consumption analysis.

2 Reuters, Indias March retail inflation quickens to 3.87% y/y April 2026.

3 Storyboard18, Experience-led retail drives FY26 growth amid rising costs and risks,March 2026.

4 Ministry of Finance, Government of India - GST Council Decision, September 2025.

5 RedSeer Strategy Consultants, SEA Eyewear: Clear Vision for a USD 11 Bn Market, 2025.

6 Trading Economics, Singapore Economy Grows 5% in 2025.

7 Monetary Authority of Singapore, Macroeconomic Review, April 2026.

8 The Nation Thailand, Retail confidence plummets amid political uncertainty, March 2026.

9 Deloitte, Southeast Asia Consumer Insights 2025.

10 Reuters, Japans services inflation steady at 2.6%, signals wage-driven price pressure, February 2026.

11 Bank of Japan, Outlook for Economic Activity and Prices, January 2026.

12 Grand View Research / Mordor Intelligence, Japan Eyewear Market Outlook 2025-2030.

13 Central Bank of the UAE, Quarterly Economic Review - Q1 2025.

14 Knight Frank/Global Business Outlook, Saudi consumer spending surges to SAR 1.41 Trillion.

15 Bain & Company Middle East Consumer Products Report 2025.

16 Reuters, Middle East geopolitical tensions impact supply chains, 2025.

Consolidated to Proforma Financials reconciliation

			FY26			FY25
Revenue from Operations
As per Consolidated financials			88,140			66,525
Add: Dealskart			-			12,228
Add: Stellio Ventures (Meller)			1,836			2,720
Add: Quantduo (GeoIQ)	47	71
Add: Proforma Adjustments			-			-13,514
As per Pro-forma financials			90,023			68,030
Product Margin
As per Consolidated financials			60,784			45,181
Add: Dealskart			-			6,973
Add: Stellio Ventures (Meller)			1,402			2,090
Add: Quantduo (GeoIQ)			47			71
Add: Proforma Adjustments			-			-7,459
As per Pro-forma financials			62,232			46,857
% of Revenue			69.1%			68.9%
EBITDA
As per Consolidated financials			17,486			9,711
Add: Dealskart			-			1,806
Add: Stellio Ventures (Meller)			422			443
Add: Quantduo (GeoIQ)			-13			-79
Add: Proforma Adjustments			-			-356
As per Pro-forma financials			17,895			11,525
% of Revenue			19.9%			16.9%
				FY26	FY25
EBITDA (Pre-IndAS 116)
As per Consolidated financials				9,682	3,777
Add: Dealskart				-	1,356
Add: Stellio Ventures (Meller)				422	432
Add: Quantduo (GeoIQ)				-13	-79
Add: Proforma Adjustments				-	-356
As per Pro-forma financials				10,091	5,130
% of Revenue				11.2%	7.5%
Profit/(loss) before tax
As per Consolidated financials				6,803	2,182
Add: Dealskart				-	152
Add: Stellio Ventures (Meller)				413	432
Add: Quantduo (GeoIQ)				-16	-82
Add: Proforma Adjustments				-	431
As per Pro-forma financials				7,198	3,115
% of Revenue				8.0%	4.6%
Profit/(loss) after tax
As per Consolidated financials				5,010	1,301
Add: Dealskart				-	162
Add: Stellio Ventures (Meller)				310	322
Add: Quantduo (GeoIQ)				-16	-82
Add: Proforma Adjustments				-	437
As per Pro-forma financials				5,300	2,140
% of Revenue				5.9%	3.1%

Glossary

Adjusted PAT		Profit after tax, adjusted for one-time benefit recorded as other income - Fair Value through Profit and Loss (FVTPL) gain on deferred consideration for the acquisition of Owndays shares of 1,672 Mn in FY25
Average Selling Price		Revenue from Operations divided by Number of Eyewear Units
Average Cost Price		(Revenue from Operations less Product Margin) divided by Number of Eyewear Units
CAGR		Annualized growth rate for compounding values over a given time period, calculated as (Final Value/Initial Value) A (1/Time Period) - 1
Digitally Influenced Sales		% of Revenue from operations in India engaged with us digitally through organic searches, social media or other online channels in the 90 days prior to completing their purchase
EBIT or Earning before Interest and Tax		EBITDA (-) Depreciation and amortization expenses (+) other income
EBITDA		Profit / (loss) for the year / period (+) total tax expense / credit (+) finance costs (+) depreciation and amortization expense (-) other income (-) exceptional item
EBITDA (pre-IndAS 116)		EBITDA (-) IndAS 116 Rent Adjustment
Eyeglasses		Prescription eyeglasses (+) unpowered sunglasses (+) unpowered smart glasses
Eyewear Units			Eyeglasses (+) contact lenses (powered and unpowered)
IndAS 116 Rent Adjustment			IndAS 116 adjustment pertaining to Lease Liability payments
Metropolitan cities/Metros		Defined as Delhi/NCR (includes New Delhi, Gurugram, Ghaziabad, Noida, and Faridabad), Hyderabad, Ahmedabad, Bengaluru, Pune, Mumbai, Chennai and Kolkata
Middle East		Defined as the United Arab Emirates and the Kingdom of Saudi Arabia
Net Working Capital Days		For quarterly periods, computed as the ratio of the sum of closing trade receivables and inventories, less trade payables to revenue from operations for the relevant period, multiplied by 90. For annual periods, computed as the ratio of the sum of closing trade receivables and inventories, less trade payables to revenue from operations for the relevant year, multiplied by 365.
NPS		Net Promoter Score
Payback		Average payback period is calculated by dividing the relevant stores capex divided by cumulative stores post-rent EBITDA until capex is completely recovered
Prescription eyeglasses		Powered eyeglasses (+) Powered sunglasses (+) smart glasses, used for vision correction from refractive errors, reading glasses (+) computer vision glasses
Product Margin	Revenue from operations (-) cost of raw material and components consumed (-) purchase of stock in trade (-) changes in inventory of traded and finished goods
Annual Transacting Customer Accounts	Annual Transacting Customer Accounts are accounts which have transacted at least once on any of our online or offline channels in a given Financial Period/Year
ROCE or Return on Capital Employed	EBIT divided by capital employed. EBIT being computed as the Consolidated profit/(loss) for the period/ year (+) tax expense/ credit (+) finance costs; capital employed being computed as total equity (+) current and non-current borrowings (+) deferred tax liabilities (-) goodwill and other intangible assets (-) intangible assets under development (-) deferred tax assets
Southeast Asia	Comprises Singapore, Thailand, Indonesia, Philippines, Vietnam, Malaysia, and Cambodia
SPSG or Same Pincode Sales Growth	Weighted average of quarterly revenue year-on-year growth for all active Indian postal pincode that were commissioned at least one year ago, at the beginning of a given quarter.
SSSG or Same Store Sales Growth	Weighted average of quarterly revenue year-on-year growth for all active stores that were commissioned at least one year ago, at the beginning of a given quarter, adjusted to exclude stores which are temporarily non-comparable with base due to refurbishment, cannibalization, area reduction, or any such event which may make it incomparable with base
Store-level EBITDA	Revenue generated by the store (excluding unattributed channels) and subtracting direct costs such as raw materials, manufacturing, and logistics, as well as site-specific operating expenses like manpower, rent, and utilities.
Tier 1 cities	Defined as Lucknow, Raipur, Patna, Jaipur, Ranchi, Surat, Jammu, Madurai, Chandigarh, Rajkot, Nagpur, Hubli, Coimbatore, Bhubaneswar, Mangalore, Jodhpur, Gwalior, Tiruchirappalli, Indore, Visakhapatnam, Dehradun, Aurangabad, Rajahmundry, Nashik, Vadodara, Belgaum, Udaipur, Gorakhpur, Agra, Vijayawada, Jabalpur, Siliguri, Kolhapur, Bhopal, Goa, Varanasi, Bareilly, Dhanbad, Gaya
Tier 2+ cities	Cities other than metro and Tier 1 in India
Total Stores	Include all stores format i.e., CoCo, FoFo and CoFo