Laxmi Dental Q1 FY27 Results (NSE: LAXMIDENTL)
Signal: Margin expansion
The read
The quarter marks a consolidated margin inflection after Q3FY26's 11% OPM and Q4FY26's 18% OPM: EBITDA margin reached 22.3% with revenue up 13.9% and PAT up 22.8%, but the quality of the recovery depends on whether Aligners' 29.1% revenue and 186.7% result growth can offset Laboratory's 24.2% result decline and the standalone 21.5% PAT contraction.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹74.7 Cr | 13.9% | N/A |
| EBIT | ₹12.34 Cr | 22.7% | |
| Net profit | ₹10.3 Cr | 22.8% | |
| EPS | ₹1.87 | 22.2% | |
| EBIT margin | 22.3% |
P&L walk
Consolidated revenue from operations was ₹746.96 million, up 13.9% YoY and 1.0% QoQ; gross margin expanded to 78.6% from 73.3% YoY, EBITDA margin recovered to 22.3%, and PAT rose 22.8% to ₹103.15 million, helped by the Aligners result of ₹65.33 million.
Segments
Aligners is the clear growth engine: revenue rose 29.1% YoY to ₹241.69 million and segment result rose 186.7% to ₹65.33 million, while Laboratory revenue grew 12.8% but its result fell 24.2% to ₹76.98 million; Other business turned profitable at ₹1.32 million from a ₹5.25 million loss.
Key positives
- Consolidated EBITDA margin expanded 150bps YoY to 22.3% while EBITDA grew 22.2%, 8.3 percentage points faster than revenue growth of 13.9%.
- Aligners revenue grew 29.1% YoY to ₹241.69 million and Aligners result grew 186.7% to ₹65.33 million, making it the principal growth and margin driver.
- Finance costs declined 35.2% YoY to ₹2.98 million, supporting the 22.8% consolidated PAT growth.
- EPS rose 22.2% to ₹1.87, broadly tracking PAT growth of 22.8%.
Key concerns
- Laboratory result declined 24.2% YoY to ₹76.98 million despite 12.8% revenue growth, indicating materially weaker profitability in the largest segment.
- Standalone EBITDA declined 9.0% YoY and standalone PAT declined 21.5% to ₹6.17 million, creating a material dependence on subsidiaries, joint ventures and other group operations.
- Cost of material consumed increased to 12.2% of revenue from 3.6% YoY even as gross margin expanded 527bps; the filing does not disclose the reason for this divergence.
- Employee costs grew 20.2% YoY, faster than consolidated revenue growth of 13.9%.
Research and educational content only. Not investment advice.