Laxmi Dental reports its strongest quarterly performance, driven by international growth and improved margins, prompting Motilal Oswal to maintain a bullish stance with a target price of ₹260.
Laxmi Dental has delivered its strongest quarterly performance to date, prompting Motilal Oswal to keep a bullish view on the stock. The brokerage has maintained a Buy rating and a target price of ₹260, implying room for further gains after a period in which the company has continued to strengthen its revenue mix and profit profile.
The June quarter was marked by double-digit growth across the board. Revenue rose 13.9% year-on-year to ₹74.7 crore, while EBITDA increased 20.6% to ₹14.4 crore and the EBITDA margin improved to 19.2% from 18.2% a year earlier. Gross margin also widened sharply to 78.6% from 73.3%, helped by a better product mix, and adjusted profit after tax climbed 23% to ₹10.3 crore, underlining the operating leverage in the business.
A key driver of the quarter was the international dental laboratory business, which grew 37.4% year-on-year. Overall laboratory revenue increased 23.5%, while the aligner solutions segment advanced 28.6%. Within that category, Bizdent and Vedia both posted healthy growth, suggesting the company has started to regain momentum in a business line that had previously been under pressure.
Motilal Oswal said the latest numbers reflect both stronger overseas traction and a recovery in aligners, and expects the earnings trend to continue. According to the brokerage, revenue, EBITDA and PAT could grow at compound annual rates of 18%, 34% and 35% respectively over FY26 to FY28, indicating that profits may rise faster than sales as the company scales.
The broader investment case rests on Laxmi Dental’s position as an integrated dental products maker with a wide distribution network and a growing international footprint. The company says it serves more than 22,000 clinics, companies and dentists across over 95 countries, and it has been adding support facilities in India as well as building its presence in the US. Motilal Oswal’s latest call follows earlier bullish notes on the stock, with the brokerage also pointing to the company’s digital dentistry platform and improving profitability over the past few years.
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