Laxmi Dental Limited – Investor Presentation Summary

Key Operational Highlights

  • Highest-ever quarterly revenue of ₹79.5 crore in Q2FY27, with H1FY27 revenue at ₹154.2 crore
  • Dental laboratory business grew 22.7% YoY in Q2FY27 with international operations growing 32.0% and domestic operations growing 15.0%
  • Aligner Solutions delivered 23.5% YoY growth in Q2FY27, with Bizdent growing 27.7% and Vedia growing 19.1%
  • Kids-e-Dental paediatric business grew 16.7% YoY in Q2FY27
  • Scanner sales remained muted at ₹3.5 crore in Q2FY27 compared to ₹8.9 crore in Q2FY26 due to inflated prices for high-end laptops
  • Digital penetration in domestic lab increased to ~75% in FY26 from ~64% in FY25, targeting 90%+
  • Company serves 22,000+ clinics, dental companies & dentists across 320+ cities in India and 95+ export countries

Key drivers of operational performance: AI-led automation, hub-and-spoke strategy, digitalisation, brand building, and strengthened international leadership

Segment-wise Performance

Laboratory Offerings:

  • Q2FY27: ₹538.3 million (8.3% YoY growth)
  • Domestic laboratory: ₹258.3 million (15.0% YoY)
  • International laboratory: ₹244.0 million (32.0% YoY)
  • Scanner sales: ₹36.1 million (-58.8% YoY)
  • H1FY27: ₹1,038.4 million (10.4% YoY growth)

Aligner Solutions:

  • Q2FY27: ₹246.1 million (21.9% YoY growth)
  • Illusion Aligners (Bizdent): ₹132.0 million (27.7% YoY)
  • Taglus (Vedia): ₹115.1 million (19.1% YoY)
  • Scanner sales: -₹1.1 million
  • H1FY27: ₹482.6 million (24.4% YoY growth)

Kids-e-Dental (100%, not consolidated):

  • Q2FY27: ₹62.6 million (16.7% YoY)
  • H1FY27: ₹130.8 million (33.7% YoY)

Explanation of significant changes in segment performance: Strong growth in international laboratory operations driven by market-specific strategies and export platform advantages. Aligner growth driven by backward integration, branding, and cross-selling through existing dental relationships.

Financial Highlights

Q2FY27 Performance:

  • Revenue: ₹795.2 million
  • EBITDA: ₹152.7 million
  • PAT (after share of JVs): ₹100.4 million
  • EPS: ₹1.82 (Basic), ₹1.82 (Diluted)
  • Gross Profit Margin: 76.9%
  • EBITDA Margin: 19.2%
  • PAT Margin: 12.6%

H1FY27 Performance:

  • Revenue: ₹1,542.2 million
  • EBITDA: ₹296.3 million
  • PAT (after share of JVs): ₹203.5 million
  • EPS: ₹3.70 (Basic), ₹3.69 (Diluted)
  • Gross Profit Margin: 77.7%
  • EBITDA Margin: 19.2%
  • PAT Margin: 13.2%

YoY Comparison (Q2FY27 vs Q2FY26):

  • Revenue: +10.0%
  • Gross Profit: +23.5%
  • EBITDA: +38.5%
  • PAT (after share of JVs): +17.6%

QoQ Comparison (Q2FY27 vs Q1FY27):

  • Revenue: +6.5%
  • Gross Profit: +4.2%
  • EBITDA: +6.3%
  • PAT (after share of JVs): -2.7%

Drivers of financial performance: Higher revenue growth, favorable product mix improving gross margins, operational discipline, and reduced ESOP expenses (₹2.1 million in Q2FY27 vs ₹16.8 million in Q2FY26, including ~₹6 million reversal for departed employees)

Key Risks: Raw material price fluctuations, competition (both domestic and international), time and cost overruns on contracts, regulatory changes

Geographical Revenue Split

Laboratory Business Mix (FY26):

  • Domestic: 53% (₹884 million)
  • International: 47% (₹784 million)

Overall Revenue Mix (FY26):

  • ~64% from India
  • ~36% from outside India

Regional Breakdown: USA (~25% of laboratory business), UK, Europe, and 95+ export countries

Balance Sheet Snapshot

As of September 30, 2026:

  • Total Assets: ₹3,163.9 million
  • Property, Plant and Equipment: ₹567.6 million
  • Right of Use Assets: ₹143.8 million
  • Inventories: ₹268.0 million
  • Trade Receivables: ₹426.8 million
  • Cash and Cash Equivalents: ₹61.3 million
  • Total Equity: ₹2,657.2 million
  • Non-Current Liabilities: ₹148.0 million
  • Current Liabilities: ₹358.8 million

Financial Health Insights: Strong equity base, healthy current assets position, minimal debt burden

Capex & Cash Flow Health

H1FY27 Cash Flow:

  • Net Cash from Operating Activities: ₹152.0 million
  • Net Cash from Investing Activities: -₹144.1 million
  • Net Cash from Financing Activities: -₹32.5 million
  • Net Change in cash: -₹24.6 million

IPO Proceeds Deployment:

  • 64% of ₹128.2 crore net IPO proceeds deployed as of September 30, 2026
  • Shareholders approved redeployment of ₹48.1 crore unutilized proceeds:
  • ₹26.9 crore for land & building for new integrated dental laboratory and aligner facility
  • ₹21.2 crore for machinery, IT equipment, furniture & fixtures
  • Phased deployment: FY27: ₹30.4 crore, FY28: ₹17.7 crore

Investment Rationale: Capacity expansion, technology upgrades, owned facility to reduce operating costs and improve efficiency

Strategic & R&D Initiatives

Investments in Innovation: AI-led automation, iScope 360 AI remote dental platform, AI Dent (49% JV investment), digital workflow integration, scanner subscription model

Expected impact on growth: Digital initiatives expected to drive scanner adoption, improve workflow efficiency, and create additional revenue streams

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through owned facilities, enhancing digital capabilities to maintain competitive advantage

Industry Trends & Business Environment

Macro/Industry Trends: India's dental industry undergoing structural shift from unorganized to organized labs, increasing digital workflow adoption by dentists, rising patient preference for quality and aesthetics, growing demand for customized restorations globally

Impact on Company: Favorable market consolidation benefiting organized players like Laxmi Dental, digital adoption supporting scanner and platform business, international demand growth supporting export operations

Management Commentary & Growth Outlook

Strategic Outlook: "We believe the decade ahead holds great promise for dentistry in India and globally. We continue to build our capabilities to capture this opportunity responsibly and sustainably." - Rajesh Vrajlal Khakhar, Chairperson and Whole-time Director

Growth Strategy: Focus on increasing wallet share with existing dentists, adding new dental partners through hub-and-spoke strategy, leveraging India-EU Free Trade Agreement for global expansion, continued investment in digitalisation and branding

Risks and Opportunities: Highly fragmented lab market gradually organizing presents expansion opportunities; risks include competition, regulatory changes, and economic fluctuations affecting dental spending

ESG Updates

Not Specified

Digital Transformation

  • Digital penetration in domestic lab reached ~75% in FY26
  • Driving scanner adoption across dental partners in India
  • AI-enabled platforms (iScope 360, AI Dent) in development/pilot stage
  • Planning scanner deployment on subscription model to reduce upfront costs