Financial Performance Highlights (Q1 FY27 Consolidated)

  • Revenue from operations: ₹74.7 crores (highest ever quarterly revenue), representing 13.9% YoY growth from ₹65.6 crores in Q1 FY26
  • Gross profit: ₹58.7 crores, showing 22.1% YoY growth
  • Gross margin: 78.6%, improved from previous periods
  • EBITDA: ₹14.4 crores (highest ever quarterly EBITDA), with 20.6% YoY growth
  • EBITDA margin: 19.2%
  • Adjusted EBITDA (including 60% of Kids-e-Dental PAT, 49% of IDBG AI Dent PAT, and ESOP expenses): ₹16.0 crores vs ₹14.8 crores YoY
  • Profit after tax: ₹10.3 crores, showing 23.8% YoY growth
  • PAT margin: 13.8%
  • Finance cost: ₹0.3 crores (company remains debt-free)
  • ESOP expenses: ₹83 lakhs

Segmental Performance

Dental Laboratory Business:

  • Revenue growth of 23.5% YoY
  • International business grew 37.4% YoY
  • Domestic business grew 12% YoY (ex-scanners)
  • Current capacity utilization approximately 90-95%

Aligner Solutions Business:

  • Overall growth of 28.6% YoY
  • Bizdent grew 27.8% YoY
  • Vedia grew 29.3% YoY
  • Current capacity utilization approximately 70%

Kids-e-Dental Business:

  • Growth of 54.4% YoY
  • Business is steadily scaling up

Operational and Strategic Updates

Scanner Business:

  • Average scanner price: ₹3 lakhs
  • Scanner margins: 15-20% (trading margins)
  • Current digital penetration: 75-80% in domestic market
  • Scanner deployment target for FY27: 800-1,000 units
  • Scanner revenue contribution: approximately 7-8% of total revenue

International Expansion:

  • Recently appointed new CEO for USA business with 32 years of experience in medical devices and dental industry
  • Based in USA to enable market-focused strategy
  • Constant exploration of new international markets with pilots every quarter

Capacity Expansion Plans:

  • Plans to invest in new machinery in FY27 to modernize and expand manufacturing capabilities
  • Letter of intent executed to acquire new land in Palghar, Maharashtra
  • Transition from currently leased premises to owned facility to improve workflow efficiency and control cost structure
  • Current rental expense: approximately ₹2 crores annually for two properties
  • Expected to enable 3x expansion capacity
  • No disruption expected during transition due to digital operations

Expense Breakdown:

  • Employee cost: ₹28.4 crores (6.2% sequential increase due to new USA CEO appointment and additions across sales and key areas)
  • Other expenses: ₹15.9 crores (increased from ₹12.5 crores YoY due to higher freight costs, ECL provisions, and investment in AI-led automation initiatives)

Management Guidance

  • Revenue growth target for FY27: 15-20%
  • EBITDA margin target: 18-20%
  • Confidence in maintaining or improving current margin levels

Business Strategy Focus Areas

  • Expanding market reach
  • Driving product innovation
  • Accelerating digitalization
  • Building trusted and well-recognized brand in dental industry
  • Branding initiatives include brand ambassadors, in-clinic branding, social media advertising, and patient education

Industry Participation

  • Planning to participate in International Dental Show (IDS) towards end of FY27
  • IDS occurs every two years and is a premier global dental exhibition

Digital Transformation

  • AI-led automation initiatives underway with initial costs expected to normalize next year
  • AI crowns in beta testing phase
  • Digital transition enabling smoother operational changes including facility relocation

Market Context

  • USD/INR movement from ₹85 to ₹95 provided approximately 12% currency benefit YoY
  • Strong dental awareness growth in India and globally
  • Industry-wide adoption of scanners aligned with global trends