Prevest Denpro Ltd Management Discussions

The Managements Discussion and Analysis (MD&A) presents an overview of the financial performance and operational highlights of Prevest DenPro Limited for the financial year ended March 31, 2026. It provides Managements perspective on the Companys financial results, operational achievements, and the key factors that influenced its performance during the year.

This section aims to provide shareholders and other stakeholders with a comprehensive understanding of the Companys business environment, strategic priorities, competitive position, and operational progress. It also discusses significant developments across various business segments and highlights the Companys efforts to strengthen its market presence through innovation, quality, and customer-focused solutions.

In addition, the MD&A outlines the key opportunities and challenges facing the Company, along with the potential risks that may impact its future performance. It also presents Managements outlook on the Companys growth prospects and strategic direction, reflecting its commitment to sustainable growth, operational excellence, and long-term value creation for all stakeholders.

The global dental materials industry continues to demonstrate resilient growth, driven by increasing oral healthcare awareness, rising demand for aesthetic and restorative dentistry, technological advancements, and the rapid adoption of digital dentistry. The global dental materials market was valued at approximately USD 6.8 billion in 2025 and is projected to reach USD 11.3 billion by 2034, registering a CAGR of around 5.8%. The Indian dental consumables market is also witnessing robust growth and is expected to grow at a CAGR of nearly 9.7% through 2033, supported by increasing dental procedures, expanding healthcare infrastructure, and rising disposable incomes.

The industry is undergoing a significant transformation with the increasing adoption of digital workflows, CAD/CAM systems, intraoral scanners, 3D printing, and advanced restorative materials, enabling improved treatment outcomes and greater clinical efficiency. Additionally, the growing emphasis on infection prevention and indigenous manufacturing under the Make in India initiative is creating opportunities for domestic manufacturers to reduce import dependence and strengthen supply chain resilience.

Prevest DenPro is well-positioned to capitalize on these industry trends through its diversified portfolio spanning restorative, endodontic, preventive, prosthodontic, digital dentistry, and infection control solutions. The Companys continued focus on innovation, research & development, localization of raw materials, and expanding global presence supports its long-term growth strategy and reinforces its position as one of Indias leading dental materials manufacturers with an increasing international footprint.

Growing demand for aesthetic, restorative, and preventive dental treatments worldwide.

Rising adoption of digital dentistry, including CAD/CAM, intraoral scanners, and 3D printing solutions.

Increasing export opportunities in emerging and developed international markets.

Government initiatives promoting domestic manufacturing and import substitution under the Make in India programme.

Expanding dental healthcare infrastructure and increasing awareness of oral hygiene in India.

Opportunity to diversify into adjacent businesses such as disinfectants and digital dentistry solutions.

O Intense competition from established global and domestic dental materials manufacturers.

O Volatility in raw material prices and supply chain disruptions impacting production costs.

Q Foreign exchange fluctuations affecting export realizations and import costs.

0 Stringent regulatory requirements and changing compliance standards across global markets.

O Geopolitical uncertainties and global economic

slowdown that may impact international demand and trade.

The Company operates in a single reportable business segment, i.e., manufacturing and marketing of dental materials and allied products. During the year, the Companys performance was supported by its diversified product portfolio catering to various dental specialties.

The restorative and endodontic product categories continued to be the key contributors to revenue, supported by sustained demand across domestic and international markets. The Company also strengthened its portfolio in preventive care, adhesives & bonding agents, prosthodontic materials, impression materials, and infection control solutions, further enhancing its market presence.

During the year, the Company continued to expand its presence in the Digital Dentistry segment through Prevest 3D, with a focus on 3D printing resins and digital workflow solutions. In addition, the Viro range of disinfectants and Oradox oral care products continued to complement the Companys core dental materials business by addressing the growing demand for infection prevention and oral healthcare solutions.

The Companys broad product portfolio, continuous product innovation, and expanding distribution network across domestic and international markets contributed to its overall business performance and reinforced its competitive position in the dental materials industry.

The outlook for the Company remains positive, supported by growing demand for quality dental materials, increasing adoption of digital dentistry, rising awareness

of oral healthcare, and expanding opportunities in both domestic and international markets. The Company will continue to strengthen its presence through new product launches, deeper market penetration, and expansion into high-growth segments such as digital dentistry, 3D printing solutions, infection control products, and oral care.

The Company operates in a dynamic and competitive business environment and is exposed to risks arising from intense competition, fluctuations in raw material prices, supply chain disruptions, foreign exchange volatility, evolving regulatory requirements, and changing customer preferences. Rapid technological advancements in the dental industry also require continuous investments in research & development to maintain competitiveness.

The Company has established a robust risk management framework to identify, assess, and mitigate potential risks. It continues to focus on product innovation, diversification of markets, localization of critical raw materials, strengthening of the supply chain, regulatory compliance, and operational excellence to effectively manage these risks while ensuring sustainable business growth.

The Company has robust internal control systems in place to ensure efficient and effective management of its operations. Regular audits, both internal and external, are conducted to evaluate the adequacy and effectiveness of these controls. The company continuously strives to improve its internal control mechanisms to mitigate risks and ensure compliance with regulatory requirements.

During FY 2025-26, the Company recorded healthy operational and financial performance, supported by strong demand across domestic and international markets, continuous product innovation, and an expanding customer base. Revenue from Operations grew by 13.63%, reflecting improved sales volumes, increased market penetration, and a diversified product portfolio.

The Companys focus on operational excellence, efficient capacity utilization, disciplined cost management, and a favourable product mix resulted in improved profitability during the year. EBITDA, PBT, and PAT grew by 16.65%, 17.58%, and 17.67%, respectively, while EBITDA, PBT, and PAT margins also improved over the previous year. The Companys continued investments in research & development, digital dentistry solutions, and manufacturing capabilities, coupled with prudent financial management, enabled it to sustain healthy margins and strengthen its overall financial performance despite a dynamic business environment.

The Company recorded consistent revenue growth, supported by steady exports and an improved product mix. Operating margins remained healthy, aided by cost efficiencies despite an increase in inventory levels to support future demand.

Human resources continue to be one of the Companys most valuable assets, playing a pivotal role in driving innovation, operational excellence, and sustainable growth. The Company is committed to attracting, developing, and retaining a skilled workforce by fostering a culture of continuous learning, employee engagement, performance excellence, and a safe and inclusive work environment. Regular training and development initiatives are undertaken to enhance technical, functional, and leadership capabilities of employees.

Industrial relations remained cordial and harmonious throughout the year, with no major industrial disputes or disruptions to operations. As on March 31, 2026, the Company had 139 employees on its rolls. The Company remains committed to maintaining a collaborative work culture and ensuring the health, safety, and well-being of its employees.

Portfolio Expansion: Strengthen the product portfolio by expanding into Digital Dentistry and Disinfectants.

Domestic Growth: Increase market presence across Tier II and Tier III cities through new product launches and wider distribution.

Global Expansion: Enter new international markets and enhance exports to additional countries.

Innovation Focus: Invest in digital workflows, integrated restorative solutions, and complementary technologies to improve clinical outcomes.

3D Printing Ecosystem: Develop advanced dental 3D printing solutions, including printers, resins, and integrated applications.

Localization: Increase the use of indigenous raw materials to reduce import dependence and strengthen supply chain resilience.

Financial Strength: Leverage the Companys strong financial position to support sustainable growth and strategic investments.

FY 2025-26 marked another year of growth for the Company, driven by disciplined execution, research-led product development, and prudent financial management. While external challenges continue, the Company is well-positioned to capitalize on emerging opportunities in dental healthcare, both in India and abroad. We thank our shareholders, employees, partners, and customers for their continued trust and support.