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

Laxmi Dental reported a 23.8% year-on-year increase in consolidated net profit to ₹103.15 million for the quarter ended June 30, 2026 (Q1FY27), driven by significant growth in its aligners business segment. The Mumbai-based dental products manufacturer saw consolidated revenue from operations rise 13.6% to ₹729.91 million, reflecting strong demand across its product lines. EBITDA for the quarter grew to ₹144 million from ₹120 million in the year-ago period, with EBITDA margin expanding to 19.68% from 18.66%. This financial performance was approved by the Board of Directors at a meeting held on August 11, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors, MSKA & Associates LLP, conducted a limited review of the unaudited standalone and consolidated financial results under Standard on Review Engagements (SRE) 2410. The audit firm issued an unmodified opinion on the statements, which were prepared in accordance with Indian Accounting Standard 34 ('Interim Financial Reporting'). The Board also noted the execution of a Letter of Intent for the proposed acquisition of land situated at Palghar, Maharashtra, for a total consideration of ₹6.21 crore, aimed at expanding business operations through factory construction.

Financial Performance Highlights

The company's top-line growth was supported by both its core laboratory business and its expanding aligners division. While the laboratory business revenue declined slightly quarter-on-quarter, the aligners business showed substantial momentum. Key financial metrics for the quarter are detailed below:

Consolidated profit before tax increased 25.5% to ₹120.41 million from ₹95.95 million in the corresponding period last year. Other income contributed ₹22.98 million, up from ₹17.22 million previously. Total expenses stood at ₹649.53 million, compared to ₹577.24 million in Q1FY26, primarily due to higher employee benefit expenses and purchases of stock-in-trade.

Segment-Wise Analysis

The Chief Operational Decision Maker monitors performance across three segments: Laboratory Business, Aligners Business, and Other Business. The Aligners Business emerged as the primary growth engine, with revenue surging 29.1% year-on-year to ₹241.69 million. In contrast, the Laboratory Business, which remains the largest contributor, saw revenue decline 7.9% to ₹502.81 million.

The Aligners Business segment result improved dramatically to ₹65.33 million from ₹22.79 million in Q1FY26, highlighting operational leverage in this high-growth category. The Laboratory Business segment result was ₹76.98 million, down from ₹101.54 million in the prior year period.

What the Numbers Show

A notable divergence exists between revenue trends and profitability drivers across segments. While the Laboratory Business generated higher absolute revenue, its contribution to segment profit decreased significantly. Conversely, the Aligners Business, though smaller in revenue scale, delivered a disproportionate boost to overall profitability, with segment results nearly tripling year-on-year. The improvement in EBITDA margin to 19.68% from 18.66% further underscores the improving margin profile in the aligners division, potentially offsetting softness in the traditional laboratory products.

Corporate Developments and IPO Utilization

Beyond financial results, the Board approved the allotment of 59,360 equity shares to eligible employees upon exercise of options vested under the Laxmi Dental Stock Option Scheme 2024. The paid-up equity share capital increased from 5,49,62,149 shares to 5,50,21,509 shares. Additionally, the Board took note of the surrender of 1,636 employee stock options by Mr. Ansari Mohammed Saad, Senior Executive Technical Support.

Regarding capital allocation, the company has utilized ₹779.72 million of its initial public offer proceeds as of June 30, 2026, against a total requirement of ₹1,281.70 million. The unutilized amount of ₹501.98 million is temporarily invested in fixed deposits with banks. The company is currently seeking an extension for the utilization of these IPO proceeds in subsequent periods. The Board also reaffirmed the Scheme of Merger involving wholly-owned subsidiary Bizdent Devices Private Limited, which awaits requisite statutory approvals.