Laxmi Dental Projects Strong Growth: Targets 20-25% Revenue Increase and 13-15% PAT Margins for FY26

Laxmi Dental Limited , a prominent player in the dental products industry, has announced ambitious growth projections for the fiscal year 2026 (FY26). The company expects to achieve a significant revenue growth of 20-25% while maintaining robust Profit After Tax (PAT) margins between 13-15%.

H1 FY26 Performance and Future Outlook

Laxmi Dental has reported a solid performance for the first half of FY26, with PAT margins reaching 12.2%. The company's management expressed confidence that the second half of the fiscal year is poised to outperform H1, potentially pushing the full-year margins into the projected 13-15% range.

Management's Perspective

The company's leadership remains optimistic about maintaining strong growth momentum and meeting its full-year revenue guidance. This positive outlook is tempered with a note of caution regarding global uncertainties that could impact the business landscape.

Long-term Profitability Goals

In addition to its near-term projections, Laxmi Dental has set an ambitious long-term target for its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin. The company aims to achieve and maintain an EBITDA margin of at least 20%, highlighting its commitment to sustainable profitability and operational efficiency.

Recent Financial Performance

The company's consolidated financial results for the quarter ended September 30, 2025, offer insights into its current financial health:

Financial Metric	Q2 FY26 (in millions)	H1 FY26 (in millions)
Revenue from Operations	₹722.65	₹1,378.62
Total Income	₹746.52	₹1,419.71
Profit Before Tax	₹94.22	₹190.17
Profit After Tax	₹75.57	₹148.65
EPS (Basic)	₹1.59	₹3.10

These figures demonstrate Laxmi Dental's strong financial position and provide context for its optimistic future projections.

Segment-wise Performance

Laxmi Dental operates across three main business segments:

Laboratory Business: Includes dental prosthesis such as metal-free crowns & bridges, and Porcelain Fused to Metal (PFM) crowns and bridges.
Aligners Business: Comprises dental aligners, retainers, raw materials for aligners, sport guards, night guards, and sleep apnea devices.
Other Business: Encompasses dental distribution products used in dental laboratories, dental clinical services, and dental educational courses.

The company's diverse product portfolio positions it well to capitalize on various segments of the dental market.

Strategic Investments

Laxmi Dental has made strategic investments to support its growth plans:

Invested in IDBG AI Dent Global Private Limited, acquiring a 49% stake through equity shares and compulsory convertible preference shares.
Increased investment in its USA subsidiary, Laxmi Dental Lab USA INC, to support working capital needs and business growth.
Acquired additional shares in its wholly-owned subsidiary, Bizdent Devices Private Limited, through a rights issue.

These investments underscore the company's commitment to expanding its market presence and technological capabilities.

Conclusion

Laxmi Dental Limited's projected revenue growth of 20-25% and targeted PAT margins of 13-15% for FY26 reflect the company's strong position in the dental products market. With a solid H1 FY26 performance, strategic investments, and a diversified product portfolio, the company appears well-positioned to achieve its ambitious targets. However, as noted by management, global economic uncertainties may present challenges that will require careful navigation in the coming months.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.10%	+1.97%	+0.70%	-21.59%	-42.28%	-42.28%

Laxmi Dental Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its Initial Public Offering (IPO) launched in January 2025. The report, prepared by ICRA Limited, confirms that there has been no material deviation from the stated objectives of the issue.

IPO Proceeds and Allocation

The company raised Rs. 138.00 crore through its IPO, with the funds allocated for various purposes:

Purpose	Amount (Rs. crore)
Debt repayment	22.98
Subsidiary investments for debt repayment	4.60
Capital expenditure for new machinery	43.51
Subsidiary investment for machinery purchase	25.00
General corporate purposes	32.08
Total	128.17

Utilization Status

As of September 30, 2025, Laxmi Dental Limited has utilized Rs. 73.81 crore of the IPO proceeds, with Rs. 64.19 crore remaining unutilized. The company has completed its debt repayment objectives on schedule, while capital expenditure and subsidiary investments are partially completed and expected to be deployed within the current fiscal year.

Investment of Unutilized Funds

The unutilized funds are primarily invested in fixed deposits with ICICI Bank, earning returns ranging between 2.75% to 7.30%.

Monitoring Agency Confirmation

ICRA Limited, serving as the monitoring agency, has confirmed that there has been no material deviation from the objects of the issue as stated in the offer document.

This report demonstrates Laxmi Dental Limited's commitment to transparent financial practices and adherence to its stated objectives for the IPO proceeds. The company's progress in utilizing the funds for debt repayment and ongoing investments in capital expenditure and subsidiaries indicates a strategic approach to strengthening its financial position and expanding its operational capabilities.