Laxmi Dental board of directors approved the allotment of 7,911 equity shares under its stock option scheme and proposed a variation in the utilization of initial public offering proceeds during a meeting on August 27, 2026.

The company seeks shareholder approval to reallocate unutilized funds toward acquiring land and constructing a new manufacturing facility for dental laboratories and aligners.

ESOP Allotment Details

The board approved the allotment of 7,911 equity shares with a face value of ₹2 each to eligible employees and subsidiaries pursuant to the exercise of vested options under the Laxmi Dental Stock Option Scheme 2024.

Consequent to this allotment, the paid-up equity share capital increased from 5,50,21,509 shares to 5,50,29,420 shares. The total issued share capital stands at ₹11,00,58,840. The newly allotted shares rank pari-passu with existing equity shares and carry no lock-in period.

Proposed Variation in IPO Proceeds

The company proposed varying the objects of its IPO proceeds, which totaled ₹1,281.70 million. As on August 18, 2026, ₹800.67 million (62.47%) had been utilized. The remaining unutilized amount of ₹481.03 million is proposed to be reallocated to two new objects:

Funds originally earmarked for capital expenditure on machinery for the company and its subsidiary, Bizdent Devices Private Limited (BDPL), are being shifted to these new objects. This reallocation follows the board’s approval in March 2026 to merge BDPL with the parent company, a process pending Regional Director approval.

Trading Window Closure

Pursuant to SEBI regulations, the trading window for designated persons remains closed from August 27, 2026, until 48 hours after the declaration of voting results for the shareholders’ meeting regarding the proposed variation.

Laxmi Dental has uploaded the transcript of its Q1FY27 earnings conference call, held on August 12, 2026, providing detailed insights into its record-breaking financial performance and strategic initiatives. The company reported a consolidated revenue of ₹74.7 crore, a 13.9% year-on-year growth, driven by strong performance across its dental laboratory and aligner solutions segments.

The disclosure is made pursuant to Regulation 30 read with Schedule III Part A Para A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Laxmi Dental Limited informed both the Bombay Stock Exchange and the National Stock Exchange of India Limited regarding the availability of the transcript on its investor relations page.

Financial Highlights

Revenue from operations stood at ₹74.7 crore, compared to ₹65.6 crore in Q1FY26, marking the highest ever quarterly revenue for the company. Gross profit registered a 22.1% year-on-year growth to ₹58.7 crore, with gross margin improving to 78.6%. Employee costs increased sequentially by 6.2% to ₹28.4 crore, primarily due to the appointment of a new CEO for the USA business and additions in sales and key operational areas. ESOP expenses for the quarter stood at ₹83 lakh.

EBITDA reached ₹14.4 crore, a 20.6% year-on-year increase, with margins expanding to 19.2%. Adjusted EBITDA, which includes recorded EBITDA, 60% of Kids-e-Dental PAT, 49% of IDBG AI Dent PAT, and ESOP expenses, stood at ₹16 crore against ₹14.8 crore in the same period last year. Finance cost remained negligible at ₹0.3 crore as the company continues to operate debt-free. Profit after tax grew 23.8% year-on-year to ₹10.3 crore, maintaining healthy PAT margins at 13.8%.

Segmental Performance

The dental laboratory business delivered robust growth, with revenue increasing 23.5% year-on-year. International operations were a key driver, registering an impressive 37.4% year-on-year growth. Management attributed this momentum to strong global market presence and relationships built over years. The aligner solution business also performed strongly, recording 28.6% year-on-year growth. Within this segment, Bizdent grew by 27.8%, while Vedia increased by 29.3%.

The paediatric dental business, Kids-e-Dental, continued its rapid expansion, delivering 54.4% year-on-year growth as the business scales up. Domestically, digital penetration across the network stands between 75% and 80%, combining dental lab and aligner businesses. Internationally, the majority of operations are already digital.

Strategic Initiatives and Outlook

Laxmi Dental has appointed a new CEO for its USA business, leveraging over 32 years of experience in the medical devices and dental industry to strengthen on-ground leadership and tailor strategies for the US market. The company also executed a letter of intent to acquire land in Palghar, Maharashtra, aiming to transition from leased premises to an owned facility. This move seeks to improve workflow efficiency, control cost structures, and eliminate approximately ₹2 crore in annual rent for current domestic facilities.

Management plans to invest in new machinery to modernize manufacturing capabilities and expand capacity. Scanner deployment remains a focus, with an estimated 7-8% industry adoption rate currently. The company aims to deploy 800 to 1,000 scanners in the current financial year. While scanner margins are lower at 15-20%, management views this as essential for enabling long-term digital dentistry growth. Excluding scanners, core margins remain stable and rising.

What the Numbers Show

International business growth of 37.4% significantly outpaced overall revenue growth of 13.9%, highlighting the accelerating contribution of overseas markets. While currency tailwinds contributed approximately 12% due to USD appreciation from ₹85 to ₹95, the bulk of the growth was organic. The expansion in EBITDA margin to 19.2% despite higher employee and other expenses indicates effective operational leverage and favorable product mix shifts toward higher-margin services like aligners.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0WO601020/ee31a514-6163-40f1-ac73-4e5d9cdda75c.pdf