Laxmi Dental Ltd

Financial Performance

• Q1 FY27 revenue: INR74.7 crores; YoY growth 13.9%; highest quarterly revenue.
• Gross profit: INR58.7 crores; YoY growth 22.1%; gross margin 78.6%.
• EBITDA: INR14.4 crores; YoY growth 20.6%; EBITDA margin 19.2%.
• PAT: INR10.3 crores; YoY growth 23.8%; PAT margin 13.8%.
• Finance cost: INR0.3 crores; company remains debt-free.
• ESOP expense: INR0.83 crores.
• Other expenses: INR15.9 crores; higher freight costs, ECL provisions, and AI investments.
• New USA CEO appointment to lead US business.
• IDS to be attended towards end of FY27.

Segment and Channel Trends

• Dental lab revenue growth: 23.5% YoY; international growth: 37.4% YoY.
• Aligner solutions growth: 28.6% YoY; Bizdent 27.8%; Vedia 29.3% YoY.
• Kids-e-Dental growth: 54.4% YoY.
• Domestic digital penetration: about 75%–80%.
• Scanner revenue contribution: around 7%–8% of business; average price per scanner: INR 3 lakhs.
• Lab capacity utilization higher than aligners; aligners ~70% utilization; labs more automated.

Capex & Projects

• FY27 plan to invest in new machinery to modernize and expand manufacturing capacity.
• Letter of Intent to acquire land in Palghar, Maharashtra for owned facility.
• Existing two domestic facilities are rented; transition to owned facility planned to reduce rent.
• Transition to owned facility expected to improve workflow efficiency and scalability.

Outlook and Guidance

• International dental show (IDS) participation planned end of the fiscal year.
• Guidance reaffirmed: revenue growth 15%–20%; EBITDA margin 18%–20% for FY27.

Q&A Highlights

• Why dentists choose Laxmi: 36-year trust, global quality standards, and strong branding.
• Scanner margins: trading margin 15%–20%; current gross margin 19.2%; margin influenced by scanner mix.
• Domestic labs growth: 12% YoY; momentum expected to rise with satellite labs expansion.
• US CEO appointment to strengthen US market; 32 years' dental industry experience.
• AI-led automation: higher initial costs; expected to ease with scale next year.

Meeting Details

• Date and time: August 12, 2026 at 11:00 IST.
• Type and mode: Audio conference call (post-earnings) recording.
• Event: Q1FY27 Earnings Conference Call, organized by Laxmi Dental Limited.

Participants

• Key company participants: Company Secretary and Compliance Officer.

Purpose

• Purpose: earnings/conference call for Q1FY27 results.

Additional Notes

• Recording available: audio recording uploaded on the company website.

Q1 FY27 Consolidated Highlights

• Revenues for Q1 FY27: INR 747.0 Mn, up 13.9% YoY.
• EBITDA INR 143.6 Mn; margin 19.2%.
• Profit before tax INR 120.4 Mn; PAT INR 103.2 Mn; margins 13.8%.
• Adjusted EBITDA INR 159.6 Mn; ESOP expense INR 8.3 Mn.
• Revenue excludes Kids-e-Dental and IDBG AI Dent per Ind AS notes.
• Highest-ever quarterly revenue; gross margin 78.6% driven by product mix.
• Core dental gross margin improved; scanner sales contribution minimal.
• New USA CEO appointed; three new India support facilities across multiple cities.
• Dental laboratory YoY growth 23.5%; international ops up 37.4%.
• Aligner Solutions grew 28.6% YoY; Bizdent and Vedia grew 27.8% and 29.3%.

Business Overview

• India's only end-to-end integrated dental products company with domestic labs and aligners.
• Key segments: Dental Laboratory, Aligner Solutions, and Kids-e-Dental joint venture.
• Strategic priorities: AI-led automation, deeper market penetration, and stronger US leadership.
• Expanding global network to 22,000+ clinics to drive cross-selling.
• Revenue excludes Kids-e-Dental per Ind AS; Adjusted EBITDA includes 60% of Kids-eDental PAT.

Key Operational Highlights

• Q1FY27 revenue ₹747 mn, up 13.9% YoY, highest quarterly revenue.
• Dental Laboratory grew 23.5% YoY; international up 37.4%.
• Aligner Solutions grew 28.6% YoY; Bizdent and Vedia grew 27.8% and 29.3%.
• Three new India support facilities established to deepen regional presence.
• Strengthening US leadership with on-ground market-focused strategy.
• First Indian company to obtain US FDA 510K approval for aligners.
• Scanner sales contributed minimally in Q1FY27.

Financial Performance

• Q1FY27 revenue ₹747 mn; gross margin 78.6%; EBITDA ₹143.6 mn; EBITDA margin 19.2%.
• Q1FY27 EBIT ₹123.4 mn; PAT before JV ₹95.5 mn; PAT after JV ₹103.2 mn; PAT margin 13.8%.
• FY26 revenue ₹2,778.6 mn; EBITDA ₹434.0 mn; EBITDA margin 15.6%; PAT ₹289.2 mn; PAT margin 10.4%.
• Adjusted EBITDA FY26 ₹511.5 mn; gross margin 70.4%.
• Notes: Revenue excludes Kids-eDental; Adjusted EBITDA includes 60% of Kids-eDental PAT and 49% of IDBG AI Dent PAT.

Capital Structure & Liquidity

• Borrowings reduced to zero by 31-Mar-2026 from ₹106.1 mn non-current and ₹7.6 mn current in 31-Mar-2025.
• Cash and cash equivalents ₹84.0 mn at 31-Mar-26.
• Net cash from operating activities: negative ₹50.0 mn in FY26.
• Investing outflow ₹795.8 mn; financing outflow ₹177.5 mn; net cash change −₹1,023.3 mn.
• Total assets ₹2,939.7 mn; total equity ₹2,441.1 mn.

Strategic Priorities & Outlook

• Focus on core dental portfolio, deeper penetration, AI-led automation, and efficiency gains.
• Expand US leadership; India facilities expansion to deepen regional reach.
• Forward integration via direct B2B2C model with 22k+ clinics.
• Digitalization and branding to sustain sustainable, profitable growth.

Risks & Mitigation

• Competition and regulatory shifts; mitigated by AI automation and geographic diversification.
• Exposure to US/global markets; mitigated by leadership expansion and product diversification.

Governance & Leadership

• Chairman: Rajesh Khakhar; MD & CEO: Sameer Merchant; CFO: Dharmesh Dattani.
• Company Secretary: Suman Saha; governance and leadership profiles disclosed.

Issue overview

• Type of issue: IPO of equity shares.
• Total issue size and net proceeds: no material revision or undersubscription reported.
• Main objectives: repay borrowings, fund capex, Bizdent subsidiary investment, and general corporate purposes.

Utilisation of proceeds

• Repayment of borrowings: on schedule; no delay.
• Investment in subsidiaries for repayment: completed in Q1 FY2026; 3-month delay.
• Capex funding: partially utilised; 15-month delay; to be deployed this year.
• Investment in Bizdent Devices Pvt Ltd: partially utilised; 15-month delay; to be deployed this year.
• General corporate purposes: completed as of Q3 FY2026; 9-month delay.
• Unutilised funds: parked in fixed deposits with ICICI Bank, maturing through 2026–2027.

Governance and compliance

• Statutory approvals: not applicable; management states compliance.
• Material events: no unfavorable developments impacting viability.
• Other information: no additional material information disclosed.

General Corporate Purpose (GCP)

• GCP allocations: taxes and liabilities, debt repayment, creditor payments, Bizdent investment.
• Total GCP utilised: 32.075 crore.
• Board approval for allocations: not explicitly stated in report.

Palghar land LOI

• LOI for Palghar land acquisition valued at ₹6.21 crore.
• Advance payment of ₹0.51 crore made.

ESOP allotment

• Approved allotment of 59,360 equity shares under ESOP 2024.
• Post allotment: 5,50,21,509 shares; paid-up capital ₹11,00,43,018.

ESOP surrender

• Surrender of 1,636 ESOPs by Mr. Ansari Mohammed Saad; outstanding ESOPs now Nil.

Q1 FY27 results (consolidated)

• Consolidated Q1 FY27: revenue ₹746.96m; PAT ₹103.15m; EPS ₹1.87.

IPO proceeds utilisation

• IPO proceeds total ₹1,281.70m; utilised ₹779.72m; unutilised ₹501.98m; fixed deposits.

Merger update

• Approved merger of Bizdent Devices Private Limited with Laxmi Dental Limited; awaiting regulatory approvals.

Labour Codes impact

• Labour Codes impact: ₹57.79m (consolidated) and ₹51.56m (standalone) as exceptional items.

Meeting Details

• Date and time: August 12, 2026 at 11:00 AM IST.
• Type and mode: earnings conference call, virtual.
• Organizer: Laxmi Dental Limited.
• Purpose: discuss Q1 FY27 unaudited results for quarter ended June 30, 2026.
• Key company participants: Chairperson & Whole-Time Director; MD & CEO; CFO.
• Details of the earnings call are uploaded on the company website.

Meeting Details

• Date: August 11, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 for designated persons and relatives; reopens 48 hours after declaration.

Loan to subsidiary update

• Disbursed INR 25 L unsecured loan to Signature Smiles Dental Clinic Private Limited.
• Outstanding balance INR 1.25 Cr; facility capped at INR 50 L.