Laxmi Dental Ltd (NSE: LAXMIDENTL) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Sameer Kamlesh Merchant — Managing Director and Chief Executive Officer
Rajesh Vrajlal Khakhar — Chairperson and Whole Time Director
Dharmesh Bhupendra Dattani — Chief Financial Officer
Tushar Manudhane — Investor Relations
Analysts:
Unidentified Participant
Shalini Gupta — Analyst
Amit Agicha — Analyst
Nirali Shah — Analyst
Harshal Goel — Analyst
Ashut Nimani — Analyst
Smith Gala — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of Lakshmi Rental Limited home. Posted by Motilal Oswal Financial Services Limited kindly note this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attached to phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Tushar Manudhane from Motilal Oswal Financial Services. Thank you. And over to you sir.
Tushar Manudhane — Investor Relations
Thank you. Muska. Good afternoon everyone. Shahr from Motila Loswal Financial Services welcome you all for Q1FY26 earnings conference call of Lakshmi Dental Limited. From the management side we have with us today Mr. Rajesh Kakkar, Chairperson and full time Director, Mr. Sameer Merchant, Managing Director and CEO and Mr. Dharmesh Datani, CFO. I would now like to hand over the call to Mr. Rajesh Kakar for his opening remarks followed by the opening remarks of Sameer sir and Dharmesh Sir. Over to you sir. Rajeshwar.
Rajesh Vrajlal Khakhar — Chairperson and Whole Time Director
Thank you so much Tushar for the introduction. Good afternoon everybody. Warm welcome to all of you and thanks for joining our earnings call. On this call we are joined by our MD and CEO Sameer Merchant, CFO, Mr. Domit Datani and Strategic Growth Advisor, our Investor Relations advisors. The results and the presentations are uploaded on the stock Exchange and company website. I hope everybody has had a chance to look at them. I am delighted to share with you that we have a good start for the financial year FY26 by recording our highest ever quarterly revenue of rupees 66 crores in the first quarter.
This accounts for the growth of 10% on a year on year basis and 8% on a sequential basis. We maintain a healthy margin profit of 18.2% on the EBITDA level and 12.7% on the PAT level. During the quarter as per our IPO objectives, we repaid the debt in full and are focused on expansion plan and long term growth strategies which are centered around digital dentistry and brand building. This will help us deepen our penetration among the existing dental partners while also expanding our dental network. In line with these goals, we deployed additional intraoral scanner during the quarter.
We advertised during the IPL campaign to create more awareness for our product category. We also spend time meeting DSOS chain of clinics across countries. As the dental industry is continuously evolving in nature, we are proactively taking efforts to stay ahead of the curve and gain advantage of moving towards the latest technologies and innovations. In line with that, I am delighted to announce that we have recently made a strategic investment in IDBG AI Dent Global Private Limited. Though this company is startup, we believe that they have done commendable work on the AI side of dentistry. Their solutions include AI powered dental image X ray analysis software and AI powered.
This equation is a step ahead towards our primary focus and efforts on increasing the the penetration of digital dentistry in the country. It is strategically aligned with our vision towards innovation, efficiency and market expansion in dental healthcare both domestically and internationally. These AI products will improve the quality of treatment service given by the dentist and also enhance the experience for the patient. By adding such values to the users, this product will help us grow faster and provide a competitive edge over other companies. We expect to launch this product in the current financial year and I’m excited to observe its impact on the overall scheme of things as we begin the second quarter and plan for the remainder of the year.
Our outlook anticipates that the revenue growth momentum will continue on a quarter on quarter basis leading us up to a full year revenue growth mark of 20% to the 25% in FY26. Now I will request Sameer to give you some more color on our business performance during the quarter. Thank you.
Sameer Kamlesh Merchant — Managing Director and Chief Executive Officer
Thank you Tushar. Thank you Rajesh Bhai. Good afternoon everyone. Our business is built with an objective of delivering great value to dental professionals and the end customers across the world. In this endeavor of building a global business, we were able to achieve a solid double digit growth in our international sales and we delivered a decent performance in the domestic market. This is a noteworthy achievement that Q1FY26 is being compared against an exceptionally strong Q1FY25 where a capital gain on sales of property worth 6.6 crore was also added to the profits in Q1FY25 resulting in even a higher profit and a non comparable base.
To further understand the business trends better, let me walk through our Product mix. We have bifurcated the scanner sales from both dental and aligner segments and showed them separately. Dental laboratory business grew by 8% and constituted 59% of the revenues. Aligner Solutions revenue rose by 18% and contributed 28% of the revenue. Our B2B2C aligner business faced some competition during this quarter. Scanner sales grew by 26% on year on year basis. Since this is strategic in nature and important for our push towards digitalization, the margins made on the scanner are not as high as our CO dental products.
But having said that, we do make decent gross margins on scanner sales and are strategically moving ahead with our efforts to profitably drive digital penetration. Higher digital contribution will drive the long term profitability growth for the company. The balanced 4% revenue came from our other businesses. Our kidse dental business delivered a revenue of 4.4 crores. Overall. We continue to be very pleased with the progress we have made and are looking forward to building this success with innovative solutions and growing awareness. Now I hand over to CFO Mr. Dharmesh Dattani to take it forward. Thank you everyone.
Dharmesh Bhupendra Dattani — Chief Financial Officer
Allow me to walk you through our financial performance. Let me give you a glance at our consolidated financial performance. During Q1 of FY26, revenue from operations grew by 10% to 65.6 crore up from 59.7 crore on a year on year basis, gross profit for the year stood at 48.1 crore with a margin of 73.3%. Employee cost for the business stood at Rs. 23.6 crore. It includes a swap expenses of rupees 18.4 crores, 1.84 crores. Other expenses stood at Rs. 12.5 crore lower by 7% on a year on year basis. For the quarter EBITDA came in at 11.9 crore with a healthy margin of 18.2%.
For better understanding of the business, one can look at the adjusted EBITDA which includes recorded EBITDA plus 60% of the kids dental profit and ESOP expenses. This stood at rupees 14.8 crore. There has been a significant reduction in finance costs in Q1FY26 down to rupees 0.5 crore from rupees 1.4 crores. As we reduce the debt from our balance sheet, debt for the quarter stood at around 8.3 crores with a healthy margin of 13%. With this we conclude our opening remarks and open the floor for Q and A. Over to you Tushar.
Questions and Answers:
operator
Thank you very much. We will now begin the question and Answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue, you may Press Star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Shalini Gupta from East India Securities. Please go ahead.
Shalini Gupta
Good afternoon sir. I had a couple of questions. First one being in the result presentation. The chairman sir has said that growth was impacted due to a Strong base quarter that is first quarter financial year 25 now. And you have guided for a 20 to 25% growth for financial year 26. Now my question is this, that if you look at the various quarters for financial year 25, growth has been strong as in above 60 crores for each of those quarters. So what gives you the confidence that you will be able to arrive at a 20% growth? Sales growth for financial year 26.
Sameer Kamlesh Merchant
Sure. Thank you for your question. See we like Rajesh Bhai said, where he clearly said that we are confident of doing 20 to 25% growth this year. Our Q1 has done say 10% from Q4 usually that’s how we will keep growing on sequential basis. And the investments that we have made post the IPO are we should be able to see the delivery numbers quarter on quarter. So we are very confident that the Q2 versus Q3 and Q4 we will have sequential growth of 8 to 10%. Yeah, but what. That is how we will. So that’s what I’m saying. Yes. All the investments that we have just done from our IPO proceeds will lead to geographical expansion, capacity expansion in terms of more digitization. So there are clear processes. And the investments in place for a two keep sequentially growing this year by 8 to 10% quarter on quarter. And that is why we reinstated that line that we are very confident that we will grow by 20 to 25% this year.
Shalini Gupta
Yes sir. Now basically a lot of geographical expansion. Now my second question is that the laboratory offerings are the chunk of your business. And what is going to change? I mean in terms of product wise. Can you say what is going to change for the. For the rest of financial year 26.
Sameer Kamlesh Merchant
That’s. I think that’s a great question. We were looking forward to answer that. Scanner is our biggest enablers. Actually if you see last quarter we had sold about 80 plus scanners in FY25, Q1, in FY26, Q1 we have sold more than 200 scanners. And we are on path to do more in the next quarter as they keep coming. So this is one of the biggest enabler for us. And when we sell the scanner, this is not a vanilla sale for us. Every scanner with the doctor is with a minimum value commitment. So when we sell the scanner, there is a minimum value which is tied for the doctor to give us business per scanner.
So the more number of scanners we keep selling every quarter, the more customers we are confirming as part of our revenue in the future. So that is why we are extremely confident that we will grow in the domestic lab segment as well. Well by 20 to 25%.
Shalini Gupta
Yes. Sorry to. Sorry to ask this question. What, what, what is a scanner? What does it do for you?
Sameer Kamlesh Merchant
Great question. So I am sure either you or someone in the family would have been to a dentist and probably someone in the family would have had a cap or a crown made of ceramic or zirconia. Is that correct? Yeah, I mean I’m sure.
Sameer Kamlesh Merchant
Great. Yeah, someone. So when the doctor has to send the measurements of your upper and lower jaw or the teeth, as you may say, they are currently using a physical impression which is actually a silicon material as compared to that. So first there is operation cost of the silicon material too. It is time taking. Correct. If you are based in Delhi or some other city or some other state, it is going to take one day to travel and come to us versus a scanner is where the same process is done through a digital scanner where it’s only scanning the job.
Thereby those impressions can be very accurate and can be just emailed to us or they can use our custom portal to send the file to us in five minutes. And that is where the patient can get faster delivery, the patient can get better delivery. And this scanner is just not for the caps and crowns. Even in case of aligners or for that matter, any restoration that the dentist desires to have, they can use the scanner and send the scan of their respective patients to us.
Shalini Gupta
Okay. And sir, like you you spoken about the aligner solutions. So I just want to confirm. So these are not aligners, but these are aligner solutions that have grown, that have shown this kind of growth.
Sameer Kamlesh Merchant
So Aligner Solutions has two part of the business, B2B and B2B 2C. So B2B is we where we sell all the raw materials that you need to make an aligners India and across the world. And B2B2C is where we sell the actual aligners, where we have branded aligners in India where you know, Kareena Kapoor is a Brand ambassador and we are growing our brand in India.
Shalini Gupta
No, you’re talking about aligner solutions. Means it’s something that is used in the aligner. Am I, am I correct in my observation?
Sameer Kamlesh Merchant
No, ma’. Am. The reason we said aligner solution is there are two part of the business combined as aligner solutions. One is A, B2B and one is B2B 2C. So essentially when you, when you are talking about this strong growth, you’re talking about growth in the aligners. Yes.
Shalini Gupta
Okay. And so you, you’ve shown very strong growth in aligners and scanners. Now my question to you would be, what is the strength that you bring to the table on these businesses?
Sameer Kamlesh Merchant
So one of our core strength, like I said, digitization is one of our biggest push along with the brand that we have and the trust that we have created since few decades that we are there. So, you know, we have doctors and patients who are working with us since more than two decades. They have crowns placed in their mouth since more than two or three decades. So that’s the kind of trust that we bring to the dentist and the end consumer along with technology.
Shalini Gupta
Okay, and when you mean, what do you mean by digitization? You’ve spoken about it across several presentations. And so what exactly do you mean by digitization?
Sameer Kamlesh Merchant
Digitization means anything and everything that the patient is experiencing today to make a restoration. We would like to digitize the process as much as possible. So one of the process which I just explained you, ma’, am, was the physical impression versus the digital impression. So that is big part of a push, because in terms of operational efficiency, if I have to explain you in a very simple manner, it’s like if you could have an ATM machine and next to it, you also want to have a cashier to deliver cash to people who are coming in.
It’s not efficient. Right. You can’t have two ways. Either just have the cashier or remove the cashier and have the ATM machine. So that is what we are doing currently with physical and digital, we are close to 70% digitization, but we still have the cashier of 30%, which is the physical impression coming in. The goal of pushing the digital is that in the future, we would like to focus on only digital dentistry, because that is what the future is. And similarly, in that same thought process, we have invested in this AI company where we also truly believe that AI in dentistry is bound to come.
We cannot avoid it. AI is touching all aspects of our life. And dentistry also, it will touch. And we want to be the forefront Runners in that so that we can utilize the AI and make sure we keep pushing our digitization efforts.
Shalini Gupta
Okay, and my last question to you, sir.
operator
I’m sorry to interrupt, ma’.
Shalini Gupta
Am. Yeah, last question. Last question.
operator
Okay.
Shalini Gupta
So what we find is that raw material costs are going up and so are. So are your employee expenses going up. So, and, and, and the margins have taken a hit. Even if I. Just for the fact that you took ESOP expenses, you expensed out some ESOP expenses in the quarter, but yet your raw material costs are going up and your employee expenses are going up. So what is your view on both these costs?
Sameer Kamlesh Merchant
So our raw material cost when you compare is actually not going up because you are comparing the scanner sales together with the whole business. The scanner sales is an enabler for us. And when we buy the scanner, it’s a trading item. Correct? We are buying a scanner. We are selling a scanner. So it will come at trading margins. That is why you see that. But if you actually compare on a full year basis, and also as compared to Q4, our margins have grown. Comparing to Q1 is where we are saying it was an exceptional quarter.
But if you Compare full year FY25 versus the Q1, or if you compare the Q4 with Q1, in both scenarios, we have improved our margins.
Shalini Gupta
And what about employee cost? They’ve gone up. If I. Even if I. If I net it off from the ESOP expenses. So. Because you’re a growing business, so I mean, growing business line, but employee expenses as a percentage of sales have gone up. So I mean, if you could just comment on this, ma’.
Sameer Kamlesh Merchant
Am, if you see, our FY25ND ended, we were at 35.9. And our current is we are close to 36. So net net we have not. But of course, if we have to improve sales, we have added some people because like I said, we are forecasting quarter on quarter improvement sequentially, 8 to 10%. So for that we will need to add few people in certain important positions for us to enable that growth for this year.
Shalini Gupta
That is fine. That is that. That has to be expected in a growing business. Hello? Yeah. Yeah. Okay. Okay. Sorry. Sorry. Thank you, sir.
operator
Yeah, thank you. Ma’. Am, the next question is from the line of Amit Agachya from HD Hawaiian Company. Please go ahead.
Amit Agicha
Yeah, good afternoon.
Sameer Kamlesh Merchant
Hi. Good afternoon.
Amit Agicha
Yeah, thank you for the opportunity. So what is the current utilization level of the activities?
operator
Your voice is breaking up. I don’t know if it’s for me or Muskan. I just request you to use handset. Your voice is not clear properly.
Amit Agicha
I’m using the answer like, am I clear now?
operator
Oh, your voice is breaking a little bit. Slightly better.
Amit Agicha
Yeah. My question was like, what is the current capacity utilization across the fixed plants?
Sameer Kamlesh Merchant
So it depends on branch to branch, but I would say we are in reasonable capacity utilization in the lab. And for the others, there is still scope to improve the utilization. And that is what we have planned, we have invested to grow for the future.
Amit Agicha
And so what is the current confirmed order book across lab? Aligners and scanners.
Sameer Kamlesh Merchant
So I wish we could do that, but this is not like the other sectors. We are working with a lot of dentists in India and across the world. So the order book concept in dentistry itself, at least on the lab alignment perspective, doesn’t exist.
Amit Agicha
What are the top five groups?
Sameer Kamlesh Merchant
So if we have to see again, you know, India is one of the key drivers of growth. And then there is Europe, which is our second driver of growth. Of course, US is still, I would say close to 20% part of the business. But we are seeing ourselves more as a global company. Even when we started our first call, we said that our wish and our constant drive is to make this a global company. Where we are there already. We are there say in about 9,500 countries of the world. Our goal is, you know, we have all the products and the capabilities and are only awaiting regulatory clearances as we move forward in the future to be a company which will sell in probably every country in the world wherever we can get good regulatory clearance.
And that’s how we want to diversify ourselves.
Amit Agicha
And so do you feel it will help us to understand the company better?
Sameer Kamlesh Merchant
Sorry, what will help the plant visit within? Absolutely, absolutely. We always, you know, encourage people to come and visit. You will be able to understand the company so much better. Apart from the fact that next time when you visit your dentist, you will have few more questions than what you currently ask.
Amit Agicha
Yes. Okay. Please, can you please arrange for us?
Sameer Kamlesh Merchant
Absolutely, why not? You can connect with SGA who are our partners as an IR and they will be more than happy to schedule a visit.
Amit Agicha
I appreciate answering your questions, sir. All the best for the future. Thank you.
Sameer Kamlesh Merchant
Thank you so much. Welcome.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Niralisha from Ashika Stock Services. Please go ahead.
Nirali Shah
Thank you for the opportunity. I have two questions. So first one is on the gross margins. I just wanted to understand you’ve indicated that the scanner gross Margins are lower. But at the same time you also mentioned that scanner is our biggest enabler. I’m failing to understand how if this is the biggest enabler, how will we be bringing our gross margins to a higher level or maybe to our historical levels and going ahead, how can we improve on that? And if also you can share, if possible on the margin mix between the scanners and the whole dental products.
Sameer Kamlesh Merchant
Sure. So when we said that scanner is an enabler, and that is why if you see this time in our presentation, we have showed the scanner separately and we internally are tracking very clearly that what is our gross margins on our standard business and what is the gross margin on our scanner business. But when you combine them is where you are seeing that the gross margin is changing. But you have to understand a scanner is a hardware. If I am buying the hardware, say for example, at 100 rupees, you would typically sell at 20, 25, 30% of hardware to a customer.
But when I’m creating our own product, that is where the gross margin will be in the range of 75 to 80%. But this is a hardware, so you should not combine together to see the margin. And scanner is one of the key component of enabler because when it comes digital impression versus say a physical impression, our operation efficiency. And like the previous gentleman said, if you do a site visit, you will tell me that how my margins will improve versus us telling you how it will improve if we get digital impression versus physical impression. And that’s the feedback we have had previously when they visited, they came and met the management and said margin improvement.
I’m like, this is exactly what we are trying to say, that how the operation process functions between a digital impression and a physical impression. So and that is why we feel that in terms of margin, we are only improving. Actually if you see on FY25 to Q1, we have improved our margin at an overall level.
Nirali Shah
Understood. I think what you mentioned site visit would be better to understand this.
Sameer Kamlesh Merchant
Yes.
Nirali Shah
Okay. And my next question is on the kids Edental. So this quarter we did a 44 million revenue. How should we think about this business? Like in a growth trajectory perspective? And should 45 million be a sustainable quarterly run rate or what kind of. Growth should we see here?
Sameer Kamlesh Merchant
It will definitely grow higher. In fact, we have explained this in our previous call that we are awaiting certain regulatory approvals which should be done either in Q3 or Q4. Once we achieve those regulatory approval, I feel we are confident that what we did last year with Kidse, we should be able to do 2020 5% growth in Kidse as well.
Nirali Shah
2020 5% growth for the kidse dental.
Sameer Kamlesh Merchant
Correct? Yes.
Nirali Shah
Okay, understood. Thank you.
Sameer Kamlesh Merchant
Thank you.
operator
Thank you. The next question is from the line of Hoshal Goel from Goldman Smart. Please go ahead.
Harshal Goel
Hi Sameer. Hi Rajesh. Thanks for taking my. Just a quick one. I understand the margin has long term changes structurally but in the near term can you please maybe flesh out the impact of US tariffs on your business and the steps being taken currently to mitigate these.
Sameer Kamlesh Merchant
Great. So on the previous tariff situation when it was 10% we were able to pass on the tariffs of 10% so there was no impact. Based on that. Now the current 25 which has just happened, I would say probably three, four, five days back, we are still taking situation consideration. We are having meetings with our customer and we are confident that there will be able, that we should be able to pass on I would say majority of it. We may have to take care of some part of it. But at the same time there is an inter company transfer pricing that we have with our own subsidiary in US So if you ask us even you know, at current situation we are not worried.
We think it’s not going to have a major impact. There could be a 0.5 or 1% impact in the margin. That’s at max is what we think would happen. Because if it’s currently 20% of our revenue and in that and 10% is already passed on and then there is 15% which is current delta. Even if we are able to manage to pass on majority to the customer or split then also the bottom line impact should not be more than 0.5 to 1%. And anyways the other countries are much more expensive than us. If they are looking at an alternate which is China, they are also currently at 30%.
So we are not worried. We are confident that we should be able to do good. And of course you know, as things evolve in the coming weeks we will keep everyone updated.
Harshal Goel
Just a quick follow up. So given the way your profit margins are, I guess a 10 to 11% price increase may fully offset the 50% direct impact over here. But can you maybe remind us what is, can you maybe remind us the structural competitiveness of buying from India versus a Chinese lab in the US market.
Sameer Kamlesh Merchant
So currently we are probably at par in terms of pricing. You know, removing the tariff part and China could be probably 5 to 10% slightly more expensive than what we are. So you know, in some products we may be 5% more expensive. In some products they are 5%. But in an overall level we are at par with the pricing structure from China. And if the tariffs remain or they probably go down, go up, it’s going to be similar for both parties. And like you rightly said, you know, a marginal price change on the top line could offset this very easily for us.
And at the same time, you know, we are driving really strong efforts in different parts of the world. Whether it’s apac, whether it’s the Middle east or whether it’s Europe. And in the next few quarters, by end of the financial year, we will see that we will be diversifying this business in the future. So that the US probably still be a good chunk of it, but we have diversified to de risk ourselves.
Harshal Goel
Understood. Those are all my questions.
Sameer Kamlesh Merchant
Thank you sir.
operator
Thank you. The next question is from the line of Ashut Nimani from JM Financial. Please go ahead.
Ashut Nimani
Yeah, thanks for the opportunity, sir. My first question is on the business branded aligner segment. So the revenue if you compare year on year has been flat. So despite our investments in branding of this business, why has the revenue been flat from 99 crores to. I think it has been a similar range. Could you comment on that?
Sameer Kamlesh Merchant
Sure. So if you see, even in our presentation we clearly mentioned that B2B2C faced some competition and this competition was more on the pricing part. Now as a management, we have clear thoughts in our mind that we will focus on, on maintaining the margins, the bottom line. And that is why we did not indulge in the price situation currently. And anyways, you know, all the price situation that we usually see are there for one or two quarters. And we have already taken steps in terms of how to identify the customer who are looking for the value that we give with our aligners.
Slightly newer geographies within India where people have perceived our grind to be good. So those steps are taken in that regard for the next upcoming quarters. Correct.
Ashut Nimani
Okay. And my second question is in the presentation it is mentioned that gross profit normalization to be done from quarter two onwards. So what are the drivers? And because we will be selling more scanners if I understand from your commentary. So what will be the driver for gross profit normalization and at what level it will settle? And revenue for FY26, do we still plan to grow at the 20 25% rate with the U.S. impact on the 20% rate?
Sameer Kamlesh Merchant
Absolutely. Still we are confident that we will be in the range of 20 to 25% in terms of our goal for FY26. And when you spoke about the margin Improvements. So as the product mix increases and you have seen, you know, as we enable the scanner, we go more digital. And if you have done the site visit, you will be able to see that we will keep optimizing the cost in terms of our people and also in terms of material. So when say the dollar fluctuates a little, the material would go on a quarter slightly up, slightly down.
But we are confident that as we move forward, as we go more digital, we will have more premium products and we will be able to sell, stabilize the gross margins.
Ashut Nimani
Understood. And sir, on the other expenses part are like other expenses. Last quarter like Q1, FY25 was 23% of revenues and this is 19. So any specific line item which is specifically driving this improvement.
Sameer Kamlesh Merchant
So we in terms of our ecl, so there is a credit of Eclipse on the other expenses and that is what is driving. So we are becoming more efficient in terms of what we do. In fact, I think our first earning call, we said that we have implemented a newer ERP which has come, which probably in the next couple of quarters is giving us more visibility, more cleaner structure, more access to information. And that is what we are using to improve all the aspects of our other exposure expenses.
Ashut Nimani
So it would be fair to assume it would remain at similar level for the entire year. Right.
Sameer Kamlesh Merchant
It is just implemented. So it’s been only four, five months. And you know, any ERP usually takes about, you know, six to six months to one year to get fully implemented. We see there is more improvement in that category as well.
Ashut Nimani
Okay. Yeah, yeah. Thanks a lot sir and all.
Sameer Kamlesh Merchant
Thank you, sir. Thank you.
operator
Thank you. The next question is from the line of Tushar Manudane from Motilal Osil Financial Services. Please go ahead.
Tushar Manudhane
Yeah, so just on the dentist network, you know, if you could throw some light over like past one year, how the network has expanded and probably in terms of laboratory offerings per dentist, how are we sort of scaled up in terms of getting more business per dentist? So if you could sort of share your thoughts on this aspect.
Sameer Kamlesh Merchant
Like I had explained before, our primary goal is first to digitize the network and cross sell to the network. That is what is a primary goal. Because that’s the low hanging fruit that we already have versus going out and getting new customers, which is still a part of for the sales team that they have to get newer customer base. But at the same time, like I explained, currently in the operations we have the cashier and the ATM board. So the goal here is the sooner we expand digital dentistry, the Sooner we make this 90, 95% then post that 2, 3/4 later.
Once we are able to achieve this, then the simple KRA KPI for the sales team is cross sell the dental products to the aligner customers, cross sell the aligner products to the dental customers and get newer customers. So that is the current way that we are moving and we are tracking internally of how we are able to convert a dental customer to aligner, align a customer to dental. And at the same time our sales people, when they use can as a service, they go to a doctor. We have been able to sell the scanner to the same doctor.
So that’s our sales funnel and that is how if you see this quarter, we have almost sold two and a half times scanner than we that we sold last quarter.
Tushar Manudhane
So what is the plan for number of scanners over the full year?
Sameer Kamlesh Merchant
So you know, this quarter we are at about a couple of hundred, 250, you know, seven 208 scanners approximately. The goal in our mind it should be we should be able to deploy a thousand. That’s the current goal in mind and we see how things shape up quarter on quarter. But that’s the current goal that if you are able to deploy a thousand scanners, we are locking in thousand customers who are giving us business and then the sales team can move to a new thousand customers to give scanner as a service.
Tushar Manudhane
Got it. And to support that the MRI force remains largely stable. Right. Because it is more about conversion of the existing doctors, dentists.
Sameer Kamlesh Merchant
Correct. Of course there will be always a few tweaks. You know, we are doing some replacements, some new geography addition. So that will happen. But on more or less it’s not changing a lot.
Tushar Manudhane
Sir, on the export side, US other geographies, if you could sort of help understand the growth prospects outside us, maybe the other countries.
Sameer Kamlesh Merchant
Sure. Like you said, you know, we have apac, we have the Middle east, we have Europe, you know, post hours IDS Germany show that we did, which we explained in last quarterly call, it is giving us good results. We have got a lot of leads from Europe, Middle east and apac. And in the next few coming quarters we’ll start seeing results that we are becoming a more global company. That is the goal that we have set for ourselves.
Tushar Manudhane
Got it so far?
Sameer Kamlesh Merchant
Yes. That is the IDS impact. Right. That is the impact of IDS where media already had certain registrations. So when we went when and we exhibited in the biggest exhibition where we got a chance after two years because it happens only once in two years. We have started to see that growth and similarly what we are seeing in media eventually will happen in kidse as well over there just the regulatory clearance is the hurdle.
Tushar Manudhane
And so just lastly on the supporting facility side any plans to further add in terms of cities so you know have that large touch point or we are good to go with the existing cities.
Sameer Kamlesh Merchant
We keep evaluating you know every month, every quarter. Tushar so if we think the potential of the business is rising, the customer expectation is for us to have a touch up center through which we will be able to grow the business then we’ll always keep thinking of the hub and the spoke thought process that if the spoke can help the growth in a faster way then we take a decision and we put the spoke in. But as long as we feel it’s not needed, we will not do it. So it’s just based on demand, demand and supply that we see in respective city.
Tushar Manudhane
Understood. And just lastly from my side, how much of the advertisement spend would be there for this year like compared to FY25 in absolute amount or as a performance of sales?
Sameer Kamlesh Merchant
It will still be under 5% so we still keep that. We always keep it under 5% and even this year it will still be under 5%.
Tushar Manudhane
Thank you so much.
Sameer Kamlesh Merchant
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Smith Gala from RSNP Ventures. Please go ahead.
Smith Gala
Yeah, thank you for the opportunity. So as the employee explained, expenses have increased for the upcoming growth to come in the coming quarters. Should this run rate hold for the growth to come.
Sameer Kamlesh Merchant
We should be in the similar range moving forward.
Smith Gala
Okay. And if I understand the current percentage of revenue from us is around 20% is my understanding correct?
Sameer Kamlesh Merchant
That’s correct Smith.
Smith Gala
Okay. And on the growth coming, do we have sufficient capacity in our labs to serve to the growth of 20 to 25% for the coming two to three years?
Sameer Kamlesh Merchant
Oh yes. So currently we have the capacity. All we need is add more machines and that’s why we have raised the capital and we will use the IPO funds as and when we keep needing those for our expansion.
Smith Gala
So what will be the amount of the capex?
Sameer Kamlesh Merchant
So in our, you know, IPO plan we had said that we are going to be in the range of about 68 crores for the next two years and we still feel that that is more than sufficient for us to expand.
Smith Gala
Okay, thank you. That’s. That was all it from us.
Sameer Kamlesh Merchant
Thank you.
operator
Thank you. As that was the last question for the day. I would now hand the conference over to the management for his closing comments. Over to you sir.
Sameer Kamlesh Merchant
Just one second. So, thank you. With this I conclude the call. If you have any further queries please contact sga, our investor relations advisor. Thank you everyone for joining us today on this earning call. Thank you.
operator
Thank you. Thank you on behalf of Motilal Osman Financial Services Ltd. That concludes the this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.