Laxmi Dental Q2 FY27 Results (NSE: LAXMIDENTL)
Signal: Margin expansion
The read
The key inflection is a return to margin expansion after the recent Q3FY26 contraction: Q2FY27 EBITDA margin reached 19.2%, up about 400bps YoY and stable sequentially, as gross margin expanded 841bps to 76.9%. Revenue growth decelerated from 26.3% in Q2FY26 to 10.0%, so the sustainability of the earnings recovery depends on whether the gross-margin tailwind persists; the filing does not disclose its driver.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹79.52 Cr | +10.0% | +6.5% |
| EBIT | ₹9.96 Cr | +37.0% | |
| Net profit | ₹10.04 Cr | +17.6% | |
| EPS | ₹1.82 | +14.5% | |
| EBIT margin | 19.2% |
P&L walk
Consolidated revenue increased 10.0% YoY to 795.21 million, while gross margin expanded 841bps to 76.9% and EBITDA rose 38.5% to 152.65 million; PAT grew 17.6% to 100.36 million after 21.69 million of other income and 5.27 million of joint-venture profit.
Segments
Aligners are driving the mix: revenue rose 25.2% YoY to 254.97 million and segment result increased 91.7% to 74.05 million, while the laboratory business grew 8.4% to 541.72 million with result up only 4.7%; Other business revenue fell 55.4% but turned profitable at 1.36 million from a 2.16 million loss.
Key positives
- Aligners revenue grew 25.2% YoY to 254.97 million and aligners segment result rose 91.7% to 74.05 million, making it the fastest-growing and highest-margin disclosed business.
- Gross margin expanded 841bps YoY to 76.9%, taking EBITDA margin to 19.2% from approximately 15.2% despite revenue growth of 10.0%.
- Operating cash flow recovered to 152.04 million in H1FY27 from an outflow of 200.07 million in H1FY26.
- PPE increased 21.5% to 567.61 million and depreciation rose 41.5% to 53.03 million, a clean capex-to-depreciation progression rather than an asset-base mismatch.
Key concerns
- Revenue growth moderated to 10.0% YoY from 26.3% in Q2FY26, while laboratory revenue grew only 8.4% to 541.72 million.
- Gross-margin expansion of 841bps is not attributed by management in the filing, leaving the durability of the input-cost/mix benefit unconfirmed.
- Employee benefits rose 20.8% YoY to 311.47 million, faster than revenue growth, and represented 39.2% of revenue.
- Other business revenue declined 55.4% YoY to 10.80 million, although the segment turned profitable at 1.36 million.
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