Prevest Denpro Q4 FY26 earnings call

Prevest Denpro delivered a year of steady growth and disciplined execution in FY26, despite a challenging global business environment. Revenue from operations increased by 13.9% to INR 71.81 crores, up from INR 63.03 crores in FY25. The company maintained healthy profitability with an EBITDA of INR 29.62 crores, growing 13.3%, and an EBITDA margin of 38.6%. Domestic business grew by 9%, while the export business recorded a robust growth of 17.58%.

The fourth quarter of FY26 was particularly challenging due to high geopolitical tensions, war-related developments, and disruptions in global shipping and supply chains. Despite these headwinds, revenue from operations increased by 2.63% to INR 18.94 crores. Profitability remained strong, with EBITDA growing 9.09% to INR 8.32 crores, and the EBITDA margin improved to 40.87%, demonstrating the company's ability to protect margins under difficult market conditions.

A significant initiative in FY26 was the establishment of a wholly-owned subsidiary in the UAE, aimed at strengthening regional presence. Commercial operations were delayed due to geopolitical tensions in the Middle East, but the company expects gradual commencement as the situation stabilizes. In contrast, the US market showed strong performance, with business growing 37.58% in FY26 through the Axiodent subsidiary, exhibitions, and private labeling arrangements.

Prevest Denpro commenced commercialization of its disinfectant business during the year, marking a new vertical aligned with the rising demand for hygiene-driven products in dental and medical settings. The initial customer response has been highly encouraging, validating both market needs and product strength. The company plans to continue investing in expanding the reach and product portfolio of this business in a disciplined and phased manner.

Innovation in digital dentistry remains a core growth strategy, with the company expanding capabilities beyond its established 3D printing materials portfolio. Significant progress was made in developing next-generation digital solutions, including 3D printers, through a combination of in-house R&D and strategic collaborations. 3D printer sales increased by 162% YoY, and 3D printing resins grew by 40.5%. The company aims to develop a totally indigenous 3D printer by 2028.

The Oradox oral care business experienced a 2% sales decline in FY26, primarily due to challenges in exporting to the US market (due to the Modernization of Cosmetic Regulations Act) and Dubai (post-war issues). Management is actively working to improve traction through marketing campaigns, direct doctor engagement, and expects 2-3 new product launches this year to boost sales and compensate for the current year's loss.

The company maintained its focus on operational excellence, improving manufacturing processes, capacity utilization, and supply chain. This helped mitigate inflationary pressures and maintain profitability. Domestically, the company strengthened its presence by expanding its distribution network into Tier 2 and Tier 3 cities, adding sales team members, and enhancing its product portfolio with offerings like disinfectants and Rotoflex.