Laxmi Dental's profit fell 28.92% despite 7.24% revenue growth
Standalone operating margin improved YoY but narrowed sequentially as expenses grew faster; other income supplied 31.15% of pre-tax profit.
Filed 03 Nov 2026, 19:58 IST · after market close · Laxmi Dental Ltd (LAXMIDENTL)
Key takeaways
- Standalone net profit fell 28.92% YoY despite 7.24% revenue growth, as other income dropped 39.64% and interest and depreciation costs increased.
- Sequentially, expenses grew 6.71% against 5.42% revenue growth, narrowing operating margin by 1.03 percentage points to 15.02%.
- Other income contributed 31.15% of pre-tax profit, while the tax rate rose 7.91 percentage points YoY.
Price around the results
Revenue growth did not translate into higher profit
Standalone revenue grew 7.24% YoY and operating profit rose 13.80%, but net profit fell 28.92%. The decline reflects a 39.64% fall in other income, alongside a 114.29% increase in interest and a 49.24% rise in depreciation. The higher 28.61% tax rate, up 7.91 percentage points YoY, added to the pressure.
Margin recovery paused in Q2FY27
The sequential margin decline was driven by expenses growing 6.71% while revenue grew 5.42%, reducing operating margin by 1.03 percentage points. Interest rose 15.38% and depreciation increased 20.86% QoQ. Margin had recovered from 9.42% in Q3FY26 to 16.05% in Q1FY27, so Q2FY27 marked a setback rather than a continuation of that improvement; at 15.02%, it was 6.62 percentage points below the 21.64% median for 53 reported Healthcare peers.
Management links the quarter to expansion and automation
Management said shareholders approved redeploying Rs 26.9 crore toward land and building for an integrated dental laboratory and aligner facility, with Rs 16.5 crore planned for FY27 and Rs 10.4 crore for FY28. The presentation said the company is investing in AI-led automation and has made a 49% joint-venture investment in IDBG AI Dent Global Pvt. Ltd. Management also said scanner sales were muted because high-end laptop prices were inflated.
No market reaction yet after the late filing
The standalone results were filed after market close, so there was no post-results share-price reaction at the time of reporting. Across the stock's last seven results, it rose three times and fell four times, with a median absolute move of 3.47%, indicating a mixed but generally material reaction history.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹58 cr | ₹55 cr | +5.42% | +7.24% |
| Other income | ₹2 cr | ₹3 cr | -21.54% | -39.64% |
| Expenses | ₹49 cr | ₹46 cr | +6.71% | +6.16% |
| Operating profit | ₹9 cr | ₹9 cr | -1.35% | +13.80% |
| Operating margin (%) | 15.02% | 16.05% | — | — |
| Interest | ₹0 cr | ₹0 cr | +15.38% | +114.29% |
| Depreciation | ₹4 cr | ₹3 cr | +20.86% | +49.24% |
| Profit before tax | ₹7 cr | ₹8 cr | -17.51% | -20.99% |
| Tax | ₹2 cr | ₹2 cr | +5.65% | +8.72% |
| Net profit | ₹5 cr | ₹6 cr | -24.31% | -28.92% |
| EPS (₹) | ₹0.85 | ₹1.12 | -24.11% | -29.17% |
Operating margin of 15.02% compares with a Healthcare sector median of 21.64% across 53 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Shareholders approved redeploying INR 26.9 crore toward land and building for an integrated dental laboratory and aligner facility.
- The company plans to deploy INR 16.5 crore in FY27 and INR 10.4 crore in FY28 for the new facility.
New initiatives
- The company is investing in AI-led automation to make operations faster, more consistent and efficient.
- The company invested in IDBG AI Dent Global Pvt. Ltd. through a 49% joint venture.
Problems & risks
- Scanner sales were muted because high-end laptop prices were inflated.
What to watch
- Whether operating margin holds above 15.02% after the 1.03-percentage-point sequential decline.
- Whether expense growth remains below revenue growth after 6.71% versus 5.42% in Q2FY27.
- Whether other income remains close to 31.15% of pre-tax profit.