Laxmi Dental Ltd Reports Record ₹79.5 Crore Q2 FY27 Revenue

Laxmi Dental Ltd reported record revenue of ₹79.5 crore in Q2 FY27, up 10.0% year-on-year from ₹72.3 crore, while EBITDA increased 38.5% to ₹15.3 crore and the EBITDA margin improved to 19.2%. The quarter reflected growth across its dental laboratory and aligner operations, alongside a more favourable product mix.

What did Laxmi Dental report in Q2 FY27?

Laxmi Dental reported its highest-ever quarterly revenue and EBITDA in Q2 FY27. Revenue from operations rose to ₹79.5 crore from ₹72.3 crore in Q2 FY26. Net profit increased 17.6% year-on-year to ₹10.0 crore, and the PAT margin improved to 12.6% from 11.8% a year earlier.

The company said profitability improved because of a better product mix and continued operational efficiency. Gross profit rose 23.5% year-on-year to ₹61.2 crore, exceeding the pace of revenue growth. Gross margin expanded to 76.9% from 68.5%, with management attributing the increase mainly to a favourable mix and some margin improvement in core dental segments.

EBITDA rose to ₹15.3 crore from ₹11.0 crore in the corresponding quarter of the previous year. Adjusted EBITDA was ₹16.0 crore for the quarter. While other expenses were lower sequentially, they increased year-on-year due to higher business-promotion expenditure, freight costs and investment in AI-led automation, according to the company.

Which Laxmi Dental businesses drove quarterly growth?

Laxmi Dental's dental laboratory business grew 22.7% year-on-year during the quarter, with international laboratory operations increasing 32.0% and domestic laboratory operations rising 15.0%. Management linked domestic growth to increasing digital adoption and deeper engagement with dental partners through its hub-and-spoke model.

Digital penetration in the domestic laboratory business reached about 78%. The company said it remains on track towards its medium-term target of more than 90% digital penetration. This metric is relevant because the laboratory business is a core part of Laxmi Dental's end-to-end dental offering, which also includes clear aligners, aligner materials and machines, and paediatric dental products.

Aligner Solutions revenue grew 23.5% year-on-year, supported by Bizdent and Vedia, which grew 27.7% and 19.1%, respectively. The Kids-e-Dental paediatric business increased 16.7% year-on-year. Management described the quarterly performance as broad-based across business segments.

Why did Laxmi Dental's margins improve?

Laxmi Dental's gross-margin expansion was primarily driven by a favourable product mix. Chief Financial Officer Dharmesh Dattani said the company also saw some improvement in its core dental segments. Gross margin rose by 840 basis points year-on-year to 76.9%, creating the basis for a larger improvement in operating profitability.

The EBITDA margin rose by about 390 basis points to 19.2% from 15.3%. The PAT margin increased by 80 basis points to 12.6%. The difference in the pace of margin expansion indicates that higher expenses, including business promotion, freight and AI-led automation spending, remained part of the cost base even as gross profitability strengthened.

Scanner sales were a weaker element in the quarter. Scanner sales were ₹3.5 crore compared with ₹8.9 crore in the same period last year. Managing Director and Chief Executive Officer Sameer Merchant said sales remained muted because prices of high-end laptops were elevated, and the company continued to assess its scanner roadmap in line with market conditions.

What are Laxmi Dental's manufacturing and international plans?

Laxmi Dental said it has redeployed ₹48.1 crore of IPO proceeds towards a new integrated facility. The material provided does not disclose the planned facility's size, output capacity or timeline. Management stated that the company is capable of producing enough in India to supply markets globally.

In India, Laxmi Dental plans to sell aligners only under its Illusion brand and does not intend to white-label aligners. This approach places the domestic aligner strategy around its own brand rather than contract manufacturing for third parties.

For international laboratories, management described a hybrid operating model, beginning with the United States, where a chief executive and team are already in place. Digital activities such as job entry, design and customer communication are intended to be handled in India, while physical processes and semi-automated work, including CNC and 3D printing, would be carried out locally. As of September 30, 2026, cash and bank balances, including fixed deposits and other investments, stood at ₹97.0 crore.

How does the Q2 result matter for investors and operations?

The Q2 result matters because Laxmi Dental delivered revenue growth alongside faster growth in gross profit and EBITDA. The 10.0% rise in revenue was accompanied by a 38.5% increase in EBITDA, while gross margin reached 76.9%. For investors, the result provides reported evidence that product mix and operating discipline supported quarterly profitability.

The business mix also shows that laboratory services and aligner solutions both contributed to growth. However, scanner sales declined sharply year-on-year, showing that performance was not uniform across every product category. Management has not provided a quantified recovery target for scanners.

The company has made digital penetration, international laboratory development and its integrated facility part of its stated operational priorities. Its reported ₹97.0 crore cash and investment balance, together with ₹48.1 crore of redirected IPO proceeds for the new facility, are relevant financial resources for these initiatives. Their commercial impact will depend on execution and details that the company has not yet disclosed.

Conclusion

Laxmi Dental delivered record Q2 FY27 revenue of ₹79.5 crore and record EBITDA of ₹15.3 crore, with higher gross and operating margins supporting a 17.6% increase in net profit to ₹10.0 crore. Growth in domestic and international laboratory operations, aligner solutions and paediatric products offset a decline in scanner sales.

Investors will watch the company’s progress towards more than 90% domestic digital penetration, the rollout of its US laboratory model and further disclosures on the new integrated facility funded through ₹48.1 crore of redirected IPO proceeds. Scanner-market conditions and the company’s response to elevated high-end laptop prices also remain relevant for future quarterly performance.