Laxmi Dental

Laxmi Dental reported a strong Q4 FY26, with revenue from operations reaching ₹74 crores, a 22% year-on-year growth compared to ₹60.7 crores last year. Gross profit margin stood at a healthy 70.5%, showing a minor sequential improvement. EBITDA increased by 41.8% year-on-year to ₹13.5 crores, with margins expanding to 18.3% from 15.7% in the prior year. For the full fiscal year FY26, the company achieved ₹277.9 crores in revenue, growing 16.2% over the previous year's ₹239.1 crores, with a PAT margin of 10.4%.

The dental lab business achieved its highest-ever quarterly revenue of ₹45.9 crores, growing 27% YoY, driven by robust international operations (40.9% YoY growth) and solid domestic business growth (16.3% YoY, reaching ₹23.7 crores). The aligner solutions business saw Bizdent, the clear aligner segment in India, grow 10.9% YoY. Vedia, the aligner raw metal business, reported ₹7.3 crores in revenue, though some international orders were delayed due to higher freight costs in March. The pediatric dental business, Kids-e-Dental, contributed ₹5.4 crores in Q4.

Laxmi Dental is actively pursuing its digital dentistry mission, with digital penetration in the domestic lab business currently at 80%, targeting over 90% in the medium-term. The company launched iScope 360, an AI-connected remote dental platform, enabling remote scanning, real-time monitoring, and virtual consultations. The revenue model for iScope 360 involves selling the scope (retailed at approximately ₹2000) and subsequent subscription points for various services, primarily driven by dentists, complementing the scanner business.

The company achieved healthy Q4 FY26 EBITDA and PAT margins of 18.3% and 13.6% respectively, despite a 74 bps impact on EBITDA from US tariffs. Employee costs for the quarter were ₹26.8 crores, remaining stable sequentially. Management emphasized its commitment to maintaining stable margins and improving operational efficiencies through automation and digital dentistry, expecting operational leverage as the business grows.

Laxmi Dental reported a CAPEX of ₹18.4 crores for FY26, utilizing IPO proceeds for strategic investments. The company maintains a strong financial position, remaining debt-free. Its cash and bank balance, including investments, stood at ₹99 crores, providing ample liquidity for future growth initiatives and operational flexibility.

Management expressed confidence in sustained growth over the next two to three years, aiming to expand its material business into multiple countries and improve overall margins. The US business is expected to continue performing well, with the tariff situation improving. The company's strategy against intensifying competition, particularly in the domestic aligner segment, focuses on leveraging digital automation and innovation to maintain market share and profitability.