Laxmi Dental

Laxmi Dental Limited achieved its highest ever revenues and profits in FY25, with revenue reaching ₹239 crores, marking a 23.5% year-on-year growth from ₹194 crores in the previous year. PAT also hit a record high of ₹32 crores, growing 26.2% year-on-year, with a PAT margin of 13.3%. The company's EBITDA for FY25 stood at ₹42 crores, demonstrating a robust 75.8% year-on-year growth, reflecting strong operational performance throughout the year.

For Q4 FY25, the company reported a revenue of ₹61 crores, an increase of 10.2% year-on-year from ₹55 crores. Gross margin improved by one percentage point year-on-year to 78.7%. However, management noted 'some aberrations' in the quarter, including promotional expenses of approximately ₹45 lakhs for the IDS Germany dental show and ESOP expenses of ₹1.75 crores within the total employee cost of ₹24.4 crores. Adjusted EBITDA for the quarter was ₹12.4 crores, and PAT was ₹4.3 crores.

Digitalization remains a core strategic pillar, with the company's digital penetration increasing to 64% in FY25 from 49%. The goal is to further increase this to 90-95%, potentially 100%. Laxmi Dental is investing in intraoral scanners and advanced machine equipment to aggressively deploy digital solutions across its dental partners. The company is also exploring the integration of AI capabilities to enhance productivity and improve the experience for dentists and customers.

In FY25, the dental laboratory business contributed 62% of total revenue and grew by 19%. The Aligner Solutions segment showed strong momentum, growing 41% year-on-year and contributing 32% of the revenue, totaling ₹77 crores. The Kids-e-Dental business generated ₹26 crores in revenue with an EBITDA of ₹15.5 crores and PAT of ₹12 crores, and recently received regulatory clearance for Singapore, with more international clearances expected soon. The aligner business operates on a dentist-led model, differentiating it from D2C competitors, and offers a flexible 'pay-as-you-go' model.

Post-IPO, the company has a strong balance sheet with a debt-to-equity ratio of 0.06. Management has repaid debt and plans to deploy ₹68 crores from IPO proceeds towards capex, primarily for new machine equipment and intraoral scanners. While a small amount was spent in FY25, deployment will accelerate in the current year. Laxmi Dental is also actively looking for select inorganic growth opportunities that offer strong synergy and leverage future growth.

The company's participation in the International Dental Show (IDS) in Germany, a premier dental event held once every two years, was highly impactful. Laxmi Dental had three booths, showcasing products across its businesses to global dentists, labs, and distributors. This event generated significant leads from multiple countries, which the company is now processing and expects to translate into good results within the current financial year, with momentum carrying forward for the next two years due to registration timelines.