Prevest Denpro — Q2 FY26 earnings call

Call held 20 Nov 2025

Management summary

Prevest Denpro delivered a strong H1 FY26 performance with double-digit growth in revenue and profitability, largely driven by robust export markets and initial success in new product categories like digital dentistry and disinfectants. While domestic sales faced temporary headwinds from regional issues and GST changes, Q2 saw a significant rebound. The company remains focused on expanding its digital dentistry capabilities, strengthening its US presence, and scaling new verticals, aiming for over ₹100 crores in revenue within three years while sustaining healthy margins.

Highlights

  • H1 FY26 revenue from operations grew 16.14% to ₹34.41 crores, reflecting steady progress across business verticals.

  • H1 FY26 EBITDA grew 17.36% to ₹14.35 crores, maintaining a strong EBITDA margin of 39.04%.

  • Export revenues demonstrated significant growth of 24% year-on-year, driven by stabilization in international markets.

  • The US subsidiary, Axiodent, contributed meaningfully with 47% growth in H1 FY26, despite tariff pressures.

  • New product lines like digital dentistry, disinfectants, and rotary endodontic files are showing promising traction and are expected to drive future growth.

Concerns

  • H1 FY26 domestic growth slowed to 5% due to local disruptions (Jammu conflict, floods) and GST revisions, impacting operations for 15-20 days.

  • Tariff-related cost pressures in the US market required pricing realignment, though growth was maintained.

Key financials

3 periods

Q2 FY26 QoQ

  • Revenue
    ₹18.64 Cr
    QoQ +18.2%
  • EBITDA
    ₹7.87 Cr
    QoQ +21.5%

Q2 FY26 YoY

  • PAT
    —
    YoY +15.1%

H1 FY26

  • Revenue from Operations
    ₹34.41 Cr
    YoY +16.1%
  • Total Income
    ₹36.77 Cr
    YoY +16.6%
  • EBITDA
    ₹14.35 Cr
    YoY +17.4%
  • EBITDA Margin
    39%
  • PBT
    ₹13.36 Cr
    YoY +18.4%
  • PAT
    ₹9.95 Cr
    YoY +17.2%
  • PAT Margin
    27.1%

What they filed

Q1 FY27: revenue up 20.9%, net profit up 27.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue16 15 18 16 19 +15%18 +23%19 +3%19 +21%
EBITDA6 5 7 5 7 +15%6 +11%7 +6%7 +27%
Net profit5 5 5 4 6 +15%5 +4%6 +13%6 +28%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed The company maintains a healthy balance sheet, reinforced by healthy cash flows, and cash positions continue to be robust through the period.
    Our collections have been steady, inventory never (Inaudible) (11.17) well, and our cash positions continue to be robust through the period. We continue to maintain a healthy balance sheet, reinforced by healthy cash flows.

Guidance & targets

Revenue

  • Revenue Growth Revenue · H2 FY26 · High confidence >20%
    Definitely, we expect to cross 20% in the next half year.

    — Atul Modi

  • Domestic Sales Growth Revenue · H2 FY26 · High confidence double digits
    Yes, sir. Definitely, we expect it to be in double digits.

    — Vaibhav Munjal

  • Total Revenue Revenue · within 3 years · High confidence >₹100 crores
    we expect that we can cross 100 crores within say (+) 3 years. ... The time frame is three years. Within three years, we expect to cross 100 crores.

    — Vinay Jamwal, Atul Modi

  • Top-line Growth Rate Revenue · next 3-4 years · Medium confidence ~15% year-to-year basis
    As far as our top-line is concerned, we are increasing top-line by a rate of, say, around 15% year-to-year basis.

    — Vinay Jamwal

Market

  • US Market Growth Market · coming year · Medium confidence continue
    Yes, we will continue to grow because in the half year we have grown by 43%. So, in the coming year also we see a similar growth in the U.S. market.

    — Atul Modi

Profitability

  • Margins Profitability · ongoing · High confidence sustain and maintain
    So, we produce products which are only value-added products where the margins are good. So, we are able to sustain and maintain our margins.

    — Atul Modi

What to watch in Q3 FY26

Domestic sales growth

H2 FY26
Current 5% in H1 FY26, 18.97% QoQ in Q2 FY26
Target Double-digit growth in H2 FY26

Why it matters

To confirm the recovery from H1 disruptions and validate management's confidence in sustained domestic momentum.

Do we expect our domestic growth in double digit in the second half of the year? Yes, sir. Definitely, we expect it to be in double digits.

Risks & concerns

  • Currency volatility and regional uncertainty in international markets

    medium

    Many markets faced currency volatility and regional uncertainty last year, though some are now stabilizing.

    Management acknowledged

  • Tariff-related cost pressures in the US market

    medium

    Tariffs in the US market led to cost pressures, requiring pricing realignment to maintain growth.

    Management acknowledged

  • Local disruptions and GST revisions impacting domestic sales

    medium

    Near war-like situations and floods in Jammu, along with GST revisions, caused temporary operational hurdles and slowdown in domestic sales in H1 FY26.

    Management acknowledged

  • Inflationary pressures

    low

    The company navigated inflationary pressures through internal efficiencies and cost control.

    Management acknowledged

Q&A highlights

7 direct
Growth drivers for the next 2-3 years Direct
We expect that the major growth will come from the digital dentistry portfolio while we are trying to maintain our growth in the existing product line. We expect a good growth from the new product line which has been recently launched our disinfectant range which has been very well accepted in the market.

Management clearly outlined digital dentistry, new product lines (disinfectants, oral care, 3D resins, 3D printers, rotary endodontic files) as key growth engines for the medium term.

Asked by Yash Naik

Sustainability of current margins (~35%) Direct
We are very careful, conscious about the margin. We are maintaining our profit, and the profit margins are good. And we don't want to do anything where the margins are low. So, we produce products which are only value-added products where the margins are good. So, we are able to sustain and maintain our margins.

Management emphasized a strategic focus on high-margin, value-added products and efficient operations to sustain profitability, indicating a commitment to current margin levels.

Asked by Yash Naik

Contribution of new biomaterials to revenue and commercialization timeline Direct
Biomaterials have been very successfully developed by our R&D and introduced in the market with very good success and biomaterials are contributing to our revenue significantly and new and more biomaterials are under development which will be commercialized very soon.

Highlights the success of R&D in biomaterials and their significant current and future contribution, with new products like bone grafting materials expected soon, positioning biomaterials as a future growth area.

Asked by Dhaval Pandya

Sustainability of the export rebound and demand in upcoming quarters Direct
We have seen about 24% growth in the first half of this financial year in the export. This is a very good growth, and we have seen that in the countries who are having currency issues they are now through with the currency problems and the demand for our products has increased.

Addresses the strong export growth and provides a rationale (resolution of currency issues in key markets), suggesting the momentum is sustainable and will further increase in H2.

Asked by Dhaval Pandya

Slowdown in domestic sales in H1 and expectation for H2 Direct
The major challenges, as I highlighted in my speech, were multi-fold. This year, in the 1st Quarter, we had a lot of events which impacted the business... after those initial hiccups were removed, we came back to our original growth of upwards of 15%. And our last year quarter-on-quarter growth over last year is also in the tune of 12.88%. So, we are well placed in terms of our domestic plans and growth. There is no hindrance. It was just a few external factors which impacted which will not be seen going forward.

Management provided a detailed explanation for the H1 domestic slowdown (Jammu, floods, GST) and confirmed that these were temporary, with Q2 showing strong recovery and expectations for double-digit growth in H2.

Asked by Pankit Shah

Traction and growth in the US market, especially with tariffs Direct
In the U.S. market around 47% growth in this half year over the last half year. So, we see that there is a good growth in the U.S. market. We are doing a lot of private labeling work. We are also selling own brand products in the U.S. market under the brand name of Axiodent. The growth is there, but recent tariff introduction, there is some impact, but we have realigned our pricing so that we continue to grow in the U.S. market.

Highlights strong US growth despite tariffs, indicating successful strategy adaptation (private labeling, pricing realignment) and continued focus on this key market.

Asked by Pankit Shah

Long-term revenue target of ₹100 crores and timeframe Direct
As far as our top-line is concerned, we are increasing top-line by a rate of, say, around 15% year-to-year basis. And given the timeline that's already been discussed in the last so many earnings calls, we expect that we can cross 100 crores within say (+) 3 years.

Management reiterated a clear long-term revenue target and timeframe, providing a key metric for future performance tracking.

Asked by Yash Naik

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance Overview

Prevest Denpro reported a strong H1 FY26, with revenue from operations growing 16.14% year-on-year to ₹34.41 crores. Total income for the period reached ₹36.77 crores, up 16.61%. EBITDA increased by 17.36% to ₹14.35 crores, maintaining a healthy margin of 39.04%. Profit after tax (PAT) also saw a significant rise of 17.20% to ₹9.95 crores, reflecting a PAT margin of 27.06%.

Domestic Market Challenges and Q2 Recovery

The domestic market experienced a slowdown in H1 FY26, growing only 5%, primarily due to temporary disruptions. These included a 'near war-like situation' and heavy rains/flooding in Jammu, impacting operations for 10-15 days each, and GST revisions causing a 15-20 day realignment period. However, the domestic market showed a robust recovery in Q2 FY26, with an 18.97% quarter-on-quarter growth and 12.88% year-on-year growth, with management expecting double-digit growth in H2 FY26.

Strong Export Growth and International Expansion

Export revenues were a key growth driver, increasing by 24% year-on-year in H1 FY26. This was attributed to the stabilization of international markets, particularly those that had faced currency issues. The US subsidiary, Axiodent, also contributed meaningfully with 47% growth in H1 FY26, achieved through disciplined pricing and product mix strategy despite tariff-related cost pressures. Management is optimistic about continued export growth in H2 FY26.

Digital Dentistry and New Product Initiatives

Prevest Denpro is making significant strides in digital dentistry, developing 3D printers and scanners and launching 3D resins. The company has built capacity to produce 3000 kilograms of resin monthly, though current utilization is below 5%. New product lines, including the recently launched disinfectant range and rotary endodontic files (Rotoflex), are showing strong acceptance and are expected to be major growth contributors in the coming years, aligning with the vision to become a one-stop dental solution provider.

Focus on Profitability and Operational Efficiency

The company maintained a strong EBITDA margin of 39.04% in H1 FY26 by focusing on improving internal efficiencies, streamlining processes, and maintaining tight cost control. Management emphasized a strategy of developing and selling only high-margin, value-added products to sustain profitability. Capacity utilization across key product lines has improved, with further productivity gains expected in the second half of the year.

Long-Term Growth Outlook and Targets

Prevest Denpro is cautiously optimistic about the rest of FY26, expecting H2 revenue growth to exceed 20%. The company aims for a top-line growth rate of approximately 15% year-on-year over the next 3-4 years. A key long-term target is to cross ₹100 crores in revenue within the next three years, driven by continued momentum in digital dentistry, US market expansion, scaling new product ranges, and strengthening the R&D pipeline.

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