Laxmi Dental Ltd Management Discussions

GLOBAL ECONOMY

Global economic activity remained resilient in 2025, although growth continued to vary across regions. The International Monetary Fund (IMF) has projected global growth at 3.0% in 2026 and 3.4% in 2027, compared with 3.0% in 2025. The moderation reflects the adverse impact of geopolitical tensions and elevated energy prices, partly offset by stronger technology-led activity and investment linked to artificial intelligence.

Global headline inflation is projected to increase from 4.1% in 2025 to 4.7% in 2026 before declining to 3.9% in 2027. The outlook remains exposed to commodity-price volatility, trade fragmentation, supply-chain disruptions and tighter financial conditions. However, normalisation in energy markets, sustained technology investment and improved international cooperation could support medium-term growth?.

Economy in Crosscurrents of War and Technology, July 2026

INDIAN ECONOMY

The Indian economy maintained healthy momentum during 2025-26, supported by resilient private consumption, fixed investment and broad-based expansion across manufacturing and services. The Provisional Estimates placed real GDP growth at 7.7% in 2025-26. Private Final Consumption Expenditure (PFCE), which accounted for 55.7% of GDP at constant prices, grew by 7.7% during 2025-26. At current prices, Gross National Disposable Income increased by 9.1%, while per capita Gross National Disposable Income rose by 8.1% to INR 2,49,195. The Reserve Bank of India (RBI) has projected growth at 6.6% for 2026-27?.

Domestic demand, government capital expenditure, capacity utilisation and sustained credit flows are expected to support economic activity. However, elevated energy prices, supply-chain disruptions, financial-market volatility and weather-related uncertainties remain key risks. CPI inflation is projected at 5.1% for 2026-27. The RBI retained the policy repo rate at 5.25% in June 2026 and continued with a neutral stance?.

The Union Budget 2026-27 continues to emphasise investment-led growth. Capital expenditure is budgeted at INR 12,21,821 Crores, compared with INR 10,95,755 Crores in the Revised Estimates for 2025-26. Effective capital expenditure is estimated at INR 17,14,523 Crores, while the fiscal deficit is budgeted at 4.3% of GDP4.

The global healthcare services market increased from USD 8.94 trillion in 2025 to an estimated USD 9.33 trillion in 2026 and is projected to reach USD 11.31 trillion by 2030, registering a CAGR of 4.9%. Growth is being supported by ageing populations, rising healthcare expenditure and increasing adoption of digital and AI-enabled healthcare solutions5,6.

? Ministry of Statistics and Programme Implementation, Government of India, Provisional Estimates of Annual Gross Domestic Product for 2025-26 and Quarterly Estimates of Gross Domestic Product for the Fourth Quarter (January-March) of 2025-26, 5 June, 2026

? Reserve Bank of India, RBI Bulletin, June 2026

4 Government of India, Ministry of Finance, Budget at a Glance 2026-27

5 Research and Markets, Healthcare Services Market Report 2026, published February 2026

6 Deloitte, 2026 Global Health Care Outlook, 11 December, 2025.

Indias healthcare sector is expanding through hospital-capacity additions, increasing private investment, wider public-health coverage and greater adoption of digital healthcare. Indias hospital sector is estimated at USD 122.30 billion in 2025 and is projected to reach USD 202.50 billion by 2030, registering a CAGR of approximately 10.6%. India has also operationalised over 1.86 Lacs primary healthcare centres and delivered over 47 Crores telemedicine consultations, reflecting improving access and technology-led healthcare delivery7.

Medical Devices Industry

The global medical technology industry recorded its seventh consecutive year of revenue growth, with revenues reaching USD 584 billion in 2025. Commercial leaders were expected to register growth of approximately 6-7%, supported by differentiated innovation, strategic acquisitions and expansion into high-growth therapeutic areas8.

India is emerging as an important medical devices market and manufacturing destination, with the domestic market projected to increase from USD 15.20 billion in 2025 to USD 50.10 billion by 2030. The sector spans equipment, consumables, implants and diagnostic and imaging systems. While India imports approximately 70-80% of its medical device requirements, policy initiatives, medical device parks, Production Linked Incentive schemes and 100% foreign direct investment under the automatic route are strengthening domestic capabilities. Medical device exports increased by 88% between 2018-19 and 2024-25 to INR 31,120 Crores?.

The expanding ecosystem is expected to support specialised categories such as dental equipment and digitally enabled diagnostic solutions. Increasing regulatory formalisation, quality requirements and demand for precision are likely to favour organised manufacturers with established research, manufacturing and compliance capabilities.

Dental Products and Services Industry

The dental products and services industry encompasses devices, consumables and clinical solutions used across preventive, restorative and corrective oral care. The accompanying visual outlines the principal product categories and areas of treatment within the industry?°.

7 Brickwork Ratings, Private Hospitals Sector in India, 10 November, 2025

8 EY, Pulse of the MedTech Industry Report 2025: MedTech Vital Signs Are Robust, Reigniting Growth and Expanding Markets in a Disrupted Healthcare Landscape, 29 September, 2025.

? India Brand Equity Foundation, Medical Devices Industry in India – Medical Devices Industry Report, February 2026.

?° Laxmi Dental Limited, Draft Red Herring Prospectus, dated 12 September, 2024

- Crowns and Bridges

- Dentures

- Other Dental Products

- Implants

- Aligners and other Orthodontic Products

Treatment Services

- Prosthodontics specialises in restoring or replacing missing or damaged teeth using dentures, implants, crowns and bridges

- Orthodontics involves diagnosing, preventing and correcting misaligned teeth, jaws and bite-related conditions. Common treatments include braces, clear aligners and retainers

- Periodontics deals with the structures supporting the teeth, including the gums and bones

- Endodontics deals with the dental pulp and tissues surrounding the roots of a tooth

Prosthodontics specialises in restoring or replacing missing or damaged teeth using dentures, implants, crowns, and bridges.

Orthodontics involves diagnosing, preventing, and correcting misaligned teeth, jaws, and bite issues. Common treatments include braces, clear aligners, and retainers.

Periodontics is the branch of dentistry that deals with the structures supporting the teeth, including gums and bones.

Endodontics deals with the dental pulp and the tissues around the roots of a tooth.

The global dental services market increased from USD 579.70 billion in 2025 to an estimated USD 613.11 billion in 2026 and is projected to reach USD 776.03 billion by 2030, registering a CAGR of 6.1%. Growth is being supported by the rising prevalence of oral conditions, ageing populations, improving access to specialised care and increasing demand for restorative, orthodontic and aesthetic procedures??.

In India, the dental devices market increased from USD 298.80 million in 2025 to an estimated USD 318.65 million in 2026 and is projected to reach USD 439.55 million by 2031, registering a CAGR of 6.64%. Dental consumables accounted for 67.94% of the market by product type in 2025, and prosthodontics for 33.12% by treatment type. Orthodontic treatments are projected to grow at a CAGR of 13.44% through 2031, driven by rising aesthetic awareness and the adoption of clear aligners??.

Digitalisation is transforming clinical dental care through oral-health monitoring, disease detection and risk assessment, digital imaging, virtual treatment planning, electronic health records, artificial intelligence and teledentistry. These technologies are intended to improve the quality, safety and efficiency of oral healthcare while enabling greater patient engagement and continuity of care??.

The industry outlook remains favourable, supported by the growing prevalence of oral diseases, increasing awareness of preventive care, higher demand for aesthetic treatments and continued adoption of digitally enabled solutions. However, affordability, limited insurance coverage and uneven access to specialised dental

care remain important constraints14.

Organised participants offering quality products, broad treatment solutions, regulatory compliance and digitally integrated services are expected to be better positioned to address the evolving market opportunity.

11 Research and Markets, Dental Services Market Report 2026, prepared by The Business Research Company, February 2026

12 Mordor Intelligence, India Dental Devices Market Size and Analysis Report 2031, updated 27 January, 2026

13 FDI World Dental Federation, Policy Statement: Digital Dentistry, adopted in 2025

14 World Health Organization, Oral Health, updated 17 March, 2025

Dental Laboratory Market

Dental laboratories manufacture customised restorative and orthodontic products based on prescriptions and clinical records received from dentists. Their offerings include crowns, bridges, dentures, veneers, implant-supported prostheses and orthodontic appliances. The global dental laboratories market was valued at USD 9.20 billion in 2025 and is projected to reach USD 13.09 billion by 2030, registering a CAGR of 7.3%. Growth is being supported by rising restorative and aesthetic requirements, dental tourism and increasing outsourcing of customised manufacturing to specialised laboratories15.

The Indian dental laboratories market generated revenue of USD 699.70 million in 2023 and is projected to reach USD 1.13 billion by 2030, registering a CAGR of 7.1%. Oral care was the largest segment in 2023, while orthodontics is expected to be the fastest-growing segment over the forecast period. Growth is being supported by increasing demand for preventive and restorative treatments, dental tourism and the availability of skilled dental professionals16.

Digitalisation is changing how dental laboratories receive, design and manufacture cases. Digital impressions allow case information to be transmitted electronically, while CAD/CAM systems, laboratory-management software, milling systems and 3D printers support digitally integrated production. These technologies can enable laboratories to manage customised cases across geographies and strengthen collaboration with dental clinics and dental service organisations. Increasing investment in digital laboratory technologies is expected to remain an important industry driver, although the cost of scanners, milling equipment, printers and related systems may constrain adoption among smaller laboratories15.

The industry outlook remains favourable, supported by increasing outsourcing, rising demand for restorative and aesthetic products, dental tourism and continued adoption of digital manufacturing. However, equipment costs, affordability constraints and stringent quality requirements remain important challenges. Laboratories with scalable production, skilled technicians, strong quality systems and digitally integrated workflows are expected to be better positioned to address domestic and international opportunities15,16.

COMPANY OVERVIEW

Laxmi Dental Limited is positioned as Indias only end-to-end integrated dental products company, with over two decades of experience across the dental value chain. The Companys integrated model combines manufacturing, digital workflows, technology, branding and distribution, enabling greater control over product quality, innovation and delivery timelines.

The Company serves a Dental Network of over 22,000 dentists, clinics and dental companies across more than 320 cities and exports to over 95 countries. Its operations are supported by six manufacturing facilities and approximately 2,500 employees. During 2025-26, digital penetration for Laxmi Dental within Indian dental business reached approximately 75%, strengthening connectivity between dentists and laboratories and supporting the continued growth of the Companys business.

PRODUCT PORTFOLIO

The Companys integrated portfolio spans customised dental prostheses, clear aligners, aligner-manufacturing materials, paediatric dental products, intraoral scanners and technology-enabled dental solutions. During 2025-26, the portfolio was expanded through Teen Aligners and Personalised Early Orthodontic Treatment.

15 MarketsandMarkets, Dental Laboratories Market by Practice, Product, Technology and Consumer—Global Forecast to 2030, published December 2025

16 Grand View Research, India Dental Laboratories Market Size and Outlook, 2030, updated November 2025

Laboratory Offerings

The laboratory business comprises fully customised fixed and removable dental prostheses manufactured for dentists and dental networks in India and international markets, including the US, the UK and Europe. The portfolio is led by aesthetic, metal-free zirconia restorations and also includes porcelain-fused-to-metal products.

Key products:

- Custom-made crowns and bridges

- Abutments and other fixed prostheses

- Dentures and removable prostheses

- Zirconia and porcelain-fused-to-metal restorations

- Digital laboratory solutions

Aligner Solutions

The Company offers dentist-prescribed, customised clear aligners under the Illusion Aligners brand. The portfolio was expanded during the year through Teen Aligners and Personalised Early Orthodontic Treatment designed for paediatric patients.

Through the Taglus brand, the Company is backward integrated into the manufacturing of materials and equipment used in clear-aligner production.

Key products:

The expanded portfolio enables the Company to serve orthodontists, general dentists and paediatric dentists, while creating cross-selling opportunities across its extensive Dental Network.

- Illusion Aligners

- Retainers

- Teen Aligners

- Personalised early Orthodontic Treatment

- Thermoforming sheets and retainer materials

- Biocompatible 3D-printing resins

- Automated thermoforming machines

- Dental consumables

Paediatric Dental Products

The Company operates in the paediatric dental-products category through Kids-e-Dental LLP, a jointly controlled entity in which it holds a 60% stake. Its flagship Bioflx product is a semi-flexible, tooth-coloured, pre-formed paediatric crown with a registered design.

Key products:

The portfolio is supported by a global distribution arrangement and comprises:

- Bioflx and other pre-formed paediatric crowns

- Zirconia crowns

- Silver diamine fluoride products

- Space maintainers

- Fissure sealants

- Reinforced splints

- Mineral trioxide products

- Other specialised paediatric dental solutions

Digital and Technology-enabled Solutions

The iScanPro intraoral scanner digitises the dentist-to-laboratory workflow by enabling dental impressions to be transmitted electronically, supporting improved precision, reduced turnaround time and lower dependence on physical impressions.

Recently, the Company launched iScope 360, an AI-connected remote dental platform that can be connected to a smartphone. It enables remote oral scanning, treatment monitoring, oral-health tracking and virtual consultation, allowing dentists to assess treatment progress and engage with patients beyond the physical clinic.

The Companys investment in IDBG AI Dent also supports its technology-development pipeline, including potential AI-powered dental imaging and X-ray analysis solutions. These offerings are under development and should not presently be described as established products in the commercial portfolio.

Other Business

Other Business comprises dental distribution products used by dental laboratories, dental clinical services, and dental education programmes. The Company continued to rationalise selected activities within this category that were relatively lower margin in nature.

FINANCIAL PERFORMANCE

Laxmi Dental delivered a resilient financial performance in 2025-26. Revenue from operations increased by 16.21% to INR 2,778.58 million from INR 2,391.07 million in 2024-25. EBITDA increased by 3.64% to INR 434.00 million, with an EBITDA margin of 15.62%. Adjusted EBITDA remained broadly stable at INR 511.48 million compared with INR 516.10 million in the previous year.

Profit before tax and exceptional items increased by 39.93% to INR 347.05 million from INR 248.02 million. PAT stood at INR 289.17 million, with a PAT margin of 10.41%, compared with INR 318.34 million and 13.31%, respectively, in 2024-25. Reported profitability was affected by higher US tariffs, increased non-cash ESOP expenses and a one-time gratuity past-service liability of INR 57.79 million pursuant to changes in the labour codes. The previous year also included an exceptional gain of INR 70.27 million from the sale of property, resulting in a higher comparative base.

Details of KPIs for the financial year ended March 31, 2026 and March 31, 2025.

Sr. No. Particulars	Unit	As of and for the Financial Years ended 31 March,
		2026	2025
Financial
1 Net Revenue
(a) Laboratory business
(i) Domestic?	INR million	883.63	801.83
(ii) Domestic	% of Revenue from Operations	31.80%	33.53%
(iii) International?	INR million	784.06	607.11
(iv) International	% of Revenue from Operations	28.22%	25.39%
(b) Aligners
(i) Bizdent Devices?	INR million	393.84	394.77
(ii) Bizdent Devices	% of Revenue from Operations	14.17%	16.51%
(iii) Vedia Solutions4	INR million	337.92	289.00
(iv) Vedia Solutions	% of Revenue from Operations	12.16%	12.09%
(c) Scanner
(i) Domestic Laboratory Business5	INR million	289.30	78.91
(ii) Domestic Laboratory Business	% of Revenue from Operations	10.41%	3.30%
(iii) Bizdent Devices6	INR million	4.83	79.30
(iv) Bizdent Devices	% of Revenue from Operations	0.17%	3.32%
(d) Others
(i) Others7	INR million	85.00	140.15
(ii) Others	% of Revenue from Operations	3.07%	5.86%
(e) Paediatric
(i) Kids-e-Dental8	INR million	210.56	262.68
(ii) Kids-e-Dental	% of Revenue from paediatric operations	100.00%	100.00%
2 Revenue from Operations?	INR million	2,778.58	2,391.07
3 EBITDA?°	INR million	434.00	418.72
(i) EBITDA	% of Revenue from Operations	15.62%	17.51%
4 Adjusted EBITDA??	INR million	511.48	516.10
(i) Adjusted EBITDA	% of Revenue from Operations	18.41%	21.58%
5 PBT??	INR million	289.26	318.29
(i) PBT	% of Revenue from Operations	10.41%	13.31%
6 PAT??	INR million	289.17	318.34
(i) PAT	% of Revenue from Operations	10.41%	13.31%
7 Return on Capital Employed?4	%	12.41%	16.91%
8 Return on Equity?5	%	12.77%	25.14%
9 Asset Turnover?6	times	0.96	1.14
Operational
10 Domestic Lab
(a) Total Units?7	Number	6,07,030	5,76,994
(b) Digital Units?8	Number	4,58,474	3,69,107
(c) Digital Units Penetration??	%	75.53%	63.97%
(d) Product categories - volume
(i) Metal-free?°	Number	2,75,216	2,55,550
(ii) Metal-free Revenue Share??	%	59.24%	55.85%
11 International Lab
(a) Total Units??	Number	4,29,061	2,96,936
(b) Digital Units??	Number	3,22,751	1,87,679
(c) Digital Units Penetration?4	%	75.22%	63.21%
(d) Product Categories - Volume
(i) Metal-free?5	Number	89,929	72,750
(ii) Metal-free Revenue Share?6	%	40.43%	33.45%
12 Aligners and Allied Products
(a) Total aligner Cases?7	Number	23,372	22,678
(b) Customers Served	Number	6,910	5,879
(i) Tier I?8	%	43.35%	54.72%
(ii) Tier II?8	%	35.90%	33.93%
(iii) Tier III?8	%	20.75%	11.35%
13 Kids-e-Dental
(a) Total Units??	Number	4,05,418	5,56,212
(b) Revenue share-geography
(i) Domestic?°	%	37.67%	26.05%
(ii) International??	%	62.33%	73.95%
14 Consolidated
(a) Number of Employees??	Number	2,513	2,390
(b) Branded Sales as a Percentage of Revenue from Operations??	%	52.56%	40.73%

Notes:

1. Net revenue for the domestic laboratory business refers to revenue from the dental laboratory business catering to the Indian market.

2. Net revenue for the international laboratory business refers to revenue from the dental laboratory business catering to international markets.

3. Net revenue from Bizdent Devices refers to revenue from clear aligners sold by Bizdent Devices Private Limited.

4. Net revenue from Vedia Solutions refers to revenue from aligner-related products sold by Vedia Solutions, a division of Laxmi Dental Limited.

5. Net revenue from scanner under Domestic Laboratory Business refers to revenue from scanners sold through the domestic laboratory business.

6. Net revenue from scanner under Aligners refers to revenue from scanners sold by the Bizdent Devices Private Limited.

7. Other net revenue refers to other diversified revenue of the Company and its subsidiaries.

8. Net revenue from the paediatric division refers to revenue of Kids-e-Dental LLP, a jointly controlled entity. In accordance with the applicable Ind AS requirements, its revenue is not included in the consolidated revenue from operations.

9. Revenue from operations represents the total revenue generated by the Company from the sale of goods and services and other operating income.

10. EBITDA refers to earnings before interest, tax, depreciation and amortisation. It is calculated as profit before tax and exceptional items, plus finance costs, depreciation and amortisation, less other income.

11. Adjusted EBITDA is calculated as reported EBITDA plus ESOP expenses, which are non-cash in nature, 60% of the PAT of Kids-e-Dental LLP, 49% of the PAT of IDBG AI Dent Global Private Limited and expenses relating to the International Dental Show. The International Dental Show expense was recorded in 2024-25.

12. PBT, or profit/(loss) before tax, is calculated as total income less total expenses and exceptional items of the Company for the year.

13. PAT, or profit for the year, represents the profit for the year as appearing in the financial statements and includes the Companys share of profit of jointly controlled entities accounted for under the equity method.

14. Return on capital employed is calculated as EBIT divided by capital employed. EBIT is calculated as the sum of profit before tax and finance costs. Capital employed is calculated as total equity.

15. Return on equity is calculated as net profit after tax divided by average total equity or net worth.

16. Asset turnover ratio is calculated as revenue from operations divided by average total assets.

17. Total units of the domestic laboratory business refer to the number of units sold by the domestic laboratory business catering to the Indian market.

18. Digital units of the domestic laboratory business refer to the number of units sold based on digital impressions.

19. Digital-unit penetration for the domestic laboratory business is calculated as digital units sold by the domestic laboratory business divided by total units sold by the domestic laboratory business.

20. Metal-free units of the domestic laboratory business refer to units manufactured using zirconia, lithium disilicate and other metal-free materials.

21. Metal-free revenue share for the domestic laboratory business is calculated as revenue from metal-free units divided by total revenue from the domestic laboratory business.

22. Total units of the international laboratory business refer to the number of units sold by the dental laboratory business catering to international markets.

23. Digital units of the international laboratory business refer to the number of units sold based on digital impressions.

24. Digital-unit penetration for the international laboratory business is calculated as digital units sold by the international laboratory business divided by total units sold by the international laboratory business.

25. Metal-free units of the international laboratory business refer to units manufactured using zirconia, lithium disilicate and other metal-free materials.

26. Metal-free revenue share for the international laboratory business is calculated as revenue from metal-free units divided by total revenue from the international laboratory business.

27. Total aligner cases refer to the total number of aligner cases sold by Bizdent Devices Private Limited.

28. Customers served refer to the total number of dental clinics, dental companies and dentists served by Bizdent Devices Private Limited. This represents the locations of customers served across Tier I, Tier II and Tier III cities. The classification is based on the Ministry of Finance, Government of India HRA classification: X–Tier I, with a population of 50 Lacs and above; Y–Tier II, with a population of 5 Lacs to 50 Lacs; and Z–Tier III, with a population below 5 Lacs, pursuant to Notification No. 2/5/17-E.II(B) dated 7 July, 2017.

29. Kids-e-Dental refers to the paediatric dental-products business undertaken through Kids-e-Dental LLP, a jointly controlled entity. Total units refer to the number of units sold by Kids-e-Dental LLP.

30. Domestic revenue share for Kids-e-Dental refers to the share of revenue in the Indian market by Kids-e-Dental LLP.

31. International revenue share for Kids-e-Dental refers to the share of revenue in international markets by Kids-e-Dental LLP.

32. Number of employees represents the number of employees of the Company as on 31 March of the respective financial year.

33. Branded sales as a percentage of revenue from operations is calculated as revenue from the sale of own-brand products divided by total revenue from operations. It represents revenue from branded dental products, including Illusion Zirconia, Illusion Aligners and Taglus. In addition, 100% of the revenue of Kids-e-Dental LLP is generated from branded products. Kids-e-Dental LLP generated revenue from operations of INR 210.56 million and INR 262.68 million in 2025-26 and 2024-25, respectively.

RISK MANAGEMENT

The Company operates in a complex environment shaped by regulatory requirements, raw-material sourcing, quality assurance, international operations and precision-led manufacturing. These factors expose it to financial, operational, strategic and reputational risks. To safeguard stakeholder confidence, protect its reputation and support business continuity, the Company follows a structured risk-management framework for the identification, assessment, monitoring and mitigation of existing and emerging risks.

Type of Risk	Description	Mitigation Strategies
Financial Risk	Exposure may arise from liquidity requirements, interest-rate movements, customer credit and contingent liabilities.	• Maintain adequate liquidity to support ongoing operations.
		• Maintain an appropriate mix of fixed- and floating-rate borrowings.
		• Regularly review the creditworthiness of customers.
		• Apply an Expected Credit Loss provisioning matrix.
		• Follow a prudent approach towards contingent liabilities.
Dependence on Dental Network	Business growth is dependent on the continued onboarding, engagement and retention of dental partners.	• Continue investing in sales and marketing initiatives.
		• Strengthen digital penetration and increase wallet share across the Dental Network.
Regulatory Compliance	The Company is required to comply with applicable Indian and international regulatory and quality standards, including FDA, ISO and CDSCO requirements.	• Engage qualified regulatory and technical advisers.
		• Monitor and complete the timely renewal of licences.
		• Maintain relevant certifications, including ISO and US FDA certifications.
Supply Chain and Pricing Pressure	Dependence on raw materials and the absence of long-term customer orders may expose the Company to supply and pricing fluctuations.	• Maintain a diversified vendor base. • Limit concentration among related-party suppliers.
Manufacturing Concentration	The concentration of manufacturing facilities in and around Mumbai may expose operations to location-specific disruptions.	• Maintain and implement disaster-recovery plans.
		• Evaluate opportunities for geographical diversification over time.
Competitive Risk	The Company operates in a competitive industry characterised by pricing pressure and the presence of multiple market participants.	• Provide differentiated services and solutions.
		• Strengthen relationships and loyalty among dentists.
		• Continue investing in brand-building initiatives.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company continued to prioritise employee development, recognising its people as central to sustainable growth. During the year, it undertook initiatives aimed at enhancing skills, strengthening collaboration and promoting an inclusive, growth-oriented culture. These measures supported improved employee morale, stronger team engagement and closer organisational alignment. Industrial relations remained stable and cordial, underpinned by open communication, mutual respect and continued employee participation.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Laxmi Dental has established a robust internal control framework tailored to its operations. These controls are designed to ensure product quality, regulatory compliance, particularly in health and safety standards, operational efficiency and the integrity of financial reporting. Systems are in place to monitor procurement, production, inventory management and distribution, with regular checks to mitigate risks and ensure adherence to applicable standards. An independent internal audit team periodically evaluates the effectiveness of these controls, with key observations reviewed by the Audit Committee. Based on the assessments conducted during the year, the Board is of the view that the internal control systems are adequate and operating effectively, in line with the scale and nature of the Companys activities.

CAUTIONARY STATEMENT

This Management Discussion and Analysis may include forward-looking statements that reflect the Companys current views on future performance, strategic intentions or anticipated developments. These statements are based on reasonable assumptions; however, actual outcomes may vary significantly due to various factors, including factors beyond the Companys control. Readers are advised to consider these statements with the inherent uncertainties in mind.