Laxmi Dental targets 3x-3.5x larger India facility by FY28

Laxmi Dental Limited plans to shift domestic laboratory and aligner production into an owned Indian facility of about 1.25 lakh to 1.5 lakh square feet, versus 35,000 to 40,000 square feet in its leased Mira Road units, with the gradual transition targeted for completion by the end of FY28.

What is Laxmi Dental building in India?

Laxmi Dental is planning a self-owned, purpose-built and horizontally integrated manufacturing facility for its domestic dental laboratory and aligner operations. Management said on November 4, 2026, that the company still had not acquired the land, so capacity details, equipment configuration and the eventual production profile have not yet been disclosed.

The proposed facility could measure 1.25 lakh to 1.5 lakh square feet, compared with the current 35,000 to 40,000 square feet spread across multiple vertically structured leased units in Mira Road. On management’s comparison, that represents roughly three to 3.5 times the current manufacturing footprint by area, rather than a stated threefold increase in output capacity.

Management described the existing Mira Road setup as having served the business well to date, but said rising operational scale and complexity now warrant consolidation. The stated objectives are to combine fragmented activities, improve workflow and efficiency, and provide room for the next phase of growth in laboratory and aligner solutions.

Why is Laxmi Dental moving out of leased Mira Road units?

Laxmi Dental is seeking to replace multiple leased, vertically arranged manufacturing units with one integrated horizontal facility because management expects consolidation to simplify operations as the business expands. The company did not provide a quantified cost-saving target, utilisation rate, rent expense, production-capacity number or return estimate for the project.

The need for additional infrastructure follows growth across Laxmi Dental’s core dental segments in Q2 FY27. Dental laboratory revenue grew 22.7% year on year, including 32% growth in the international laboratory business and 15% growth in domestic laboratories; aligner solutions grew 23.5%, while Kids-e-Dental grew 16.7%.

Digital penetration in the domestic laboratory business reached about 78% in Q2 FY27, and management reiterated its medium-term aim of exceeding 90%. Laxmi Dental links scanner deployment and its hub-and-spoke model with deeper dentist engagement and recurring laboratory and aligner orders, but it has not stated how much of the proposed new facility will be dedicated to each product line.

Management also said the larger site is not intended to support white-label aligner sales in India. Laxmi Dental’s domestic plan is to sell under its own Illusion Aligners brand, while its current aligner activities include branded clear aligners and Vedia’s business-to-business materials operations.

When will Laxmi Dental complete the facility transition?

Laxmi Dental expects the transition from its old plant to the new facility to be completed by the end of FY28. Management said the migration will be planned and gradual to avoid disrupting regular business operations, rather than describing a single cutover date.

The project timetable starts before the site has been secured. Management said land acquisition remains in process, and that greater clarity on capacity will come after land purchase, construction and the installation of semi-automation. This means the disclosed 1.25 lakh to 1.5 lakh square-foot range is a size indication, not a final commissioned capacity figure.

The facility plan spans FY27 and FY28, matching the revised timetable for unutilised initial public offering proceeds. Shareholders approved an update to the use of proceeds and an extension of the utilisation timeline, according to the Q2 FY27 call.

For operating context, Laxmi Dental reported Q2 FY27 revenue from operations of Rs 79.5 crore, its highest quarterly revenue, compared with Rs 72.3 crore in Q2 FY26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 38.5% year on year to Rs 15.3 crore, while the EBITDA margin increased to 19.2% from 15.3%.

How will Laxmi Dental fund the new Indian facility?

Laxmi Dental plans to deploy Rs 48.1 crore of unutilised initial public offering funds toward owned manufacturing infrastructure across FY27 and FY28. Management allocated more than Rs 27 crore for land acquisition and construction of laboratory and aligner facilities, and more than Rs 21 crore for machinery, computer equipment and other movable assets at existing and new facilities.

The disclosed allocations total more than Rs 48 crore because management described both figures as amounts above the stated thresholds. It did not identify any separate project budget beyond the unutilised initial public offering proceeds, nor did it disclose a final land price or construction cost on the November 4 call.

Laxmi Dental said it remained debt-free at September 30, 2026, with cash and bank balances, including fixed deposits and other investments, of Rs 97 crore. The company also reported capital expenditure of about Rs 16.7 crore during H1 FY27, although it did not break out how much of that spending related to the planned facility.

The project comes as H1 FY27 revenue rose to Rs 154.2 crore from Rs 137.9 crore in H1 FY26. H1 EBITDA increased 29.2% to Rs 29.6 crore and profit after tax rose 20.7% to Rs 20.4 crore, while management attributed the quarterly gross-margin improvement partly to favourable product mix rather than to benefits from the not-yet-built facility.

Conclusion

Laxmi Dental’s proposed owned facility is a scale and consolidation project rather than a fully specified capacity announcement. The planned 1.25 lakh to 1.5 lakh square-foot site would be materially larger than the 35,000 to 40,000 square feet now used in leased Mira Road units, while its Rs 48.1 crore initial public offering fund deployment provides the disclosed financing framework.

Investors should watch for land acquisition, the final layout and semi-automation plan, and management’s eventual capacity disclosures as construction advances. The key scheduled milestone disclosed is completion of the gradual operating transition by the end of FY28, with management aiming to maintain regular domestic laboratory and aligner operations during the move.