Goldiam International Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Goldiam International reported a strong Q2 and H1 FY26, with consolidated revenues up 43% and 41% respectively, and PAT growing 42% and 47%. This growth was achieved despite significant challenges from new U.S. tariffs, which the company mitigated through a U.S. origin casting model. The B2C brand, ORIGEM, is expanding rapidly, with 11 stores currently operational and plans for 20-25 by March 2026, supported by a recent INR202 crores QIP.

Highlights

  • Q2 FY26 consolidated revenues increased by 43% Year-over-Year.

  • H1 FY26 revenues grew by 41% Year-over-Year.

  • Q2 and H1 FY26 EBITDA grew by 37% Year-over-Year.

  • H1 FY26 EBITDA margin remained stable at 21.6%.

  • Q2 and H1 FY26 consolidated PAT grew by 42% and 47% respectively.

  • Lab-grown diamond jewellery exports contributed 90% to B2B sales in Q2 FY26.

  • ORIGEM, the B2C brand, recorded a total revenue of INR2.8 crores in Q2 FY26.

  • The company's order book position as on September 30, 2025, was about INR200 crores.

Key financials

3 periods

Headline

  • Order Book (Sep 30, 2025)
    ₹200 Cr
  • ORIGEM Q2 Revenue
    ₹2.8 Cr
  • ORIGEM Q1 Revenue
    ₹3.2 Cr

Q2

  • Revenue Growth
    43%
  • EBITDA Growth
    37%
  • PAT Growth
    42%
  • Gross Margin
    36%
  • Other Expenses
    ₹15 Cr

H1

  • Revenue Growth
    41%
  • EBITDA Growth
    37%
  • EBITDA Margin
    21.6%
  • PAT Growth
    47%
  • Gross Margin
    34%

What they filed

Q1 FY27: revenue up 12.4%, net profit down 34.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue143 204 159 133 105 −27%141 −31%151 −5%149 +12%
EBITDA21 22 17 15 15 −29%13 −41%19 +8%11 −25%
Net profit24 18 9 11 13 −44%9 −52%17 +93%7 −35%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • B2B Lab-Grown Diamond Jewellery Exports
    90% Contribution to B2B Sales (Q2 FY26)85% Bridal Category Penetration
  • ORIGEM (B2C Retail)
    11 stores Operational Stores (Q2 FY26)₹2.8 Cr Q2 Revenue₹3.2 Cr Q1 Revenue6 stores Average Store Fleet (Q2 FY26)₹3.5 Cr Store Opening Cost₹2.5 Cr Inventory Cost per Store₹1.2 Cr Gold Value in Inventory per Store20 lakhs_per_month Breakeven Revenue per Store

Guidance & targets

Revenue

  • B2B Segment Revenue Growth Revenue · next 2-3 years CAGR · High confidence healthy double-digit clip
    We believe we can naturally grow at a healthy double-digit clip over a 2, 3 year on a CAGR basis, without a doubt.

    — Anmol Bhansali, Managing Director

  • Full Year Revenue Growth Revenue · full year basis · Medium confidence grow
    No, no, there's no such guidance we can give. We will grow for the full year basis.

    — Anmol Bhansali, Managing Director

Profitability

  • EBITDA Margin Profitability · ongoing · High confidence 18% to 22%
    So on an EBITDA basis, we continue to track in the broad range, 18% to 21%, 22%. That's a broad range of our EBITDA guidance. We are fairly confident of achieving this.

    — Anmol Bhansali, Managing Director

  • Gross Margins Profitability · next couple of quarters · Medium confidence pretty steady if not slightly hopefully growing
    On average, I would look at our gross margins on a full year basis, which would be pretty steady if not slightly hopefully growing at least for the next couple of quarters.

    — Anmol Bhansali, Managing Director

  • ORIGEM Store Payback Period Profitability · with INR40 lakh monthly sale · Medium confidence less than 3 years
    If you see at about a INR40 lakh monthly sale, an average store will pay back its entire investment within less than 3 years. So that's how the model is being built, and we hope to achieve these numbers very soon.

    — Management

Distribution Expansion

  • ORIGEM Operational Stores Distribution Expansion · by March 31, 2026 · High confidence 20 to 25
    By March 31, 2026, the company will have 20 to 25 operational ORIGEM stores.

    — Rashesh Bhansali, Executive Chairman

  • ORIGEM Stores from Fundraise Distribution Expansion · with fundraise capital · Medium confidence 55 to 65
    Very honestly, the fundraise provides us liquidity capital and investment capital for about 55 to 65 stores, in that range, depending on the type of store, store format that we open, 50 to 65 stores.

    — Anmol Bhansali, Managing Director

  • ORIGEM Store Doubling Distribution Expansion · within the next 6-month period · High confidence doubling of stores
    So I think within the next 6-month period, we'll see an easy, easy doubling of stores, easy.

    — Anmol Bhansali, Managing Director

Risks & concerns

  • U.S. Tariffs on Lab-Grown Diamond Jewellery

    medium

    The U.S. raised tariffs from 16% to 56% on Indian LGD jewellery exports, which was mitigated by establishing a U.S. origin casting model.

    Management acknowledged

  • Operational Challenges with U.S. Casting Model

    medium

    The new hybrid manufacturing model impacted B2B operations for about 30 days in Q2 and increased lead times for dot-com sales, requiring significant team effort.

    Management acknowledged

  • Competition in Indian Lab-Grown Diamond Retail

    medium

    Large players like Tanishq and Kalyan are expected to enter the LGD segment, but management believes Goldiam's vertical integration and national presence will be a differentiator.

    Analyst downplayed

  • Raw Material Volatility (Gold Prices)

    low

    Fluctuations in gold prices can impact gross margins quarter-to-quarter, but full-year margins are expected to be steady.

    Management acknowledged

Areas of evasion (2)

  • ORIGEM Q2 loss
  • ORIGEM Q2 inventory value

Q&A highlights

3 direct
B2B segment growth and steady-state margins post lab-grown diamond penetration Direct
So as the industry itself grows because there's a lot of room for the industry to grow, our focus and concentration on lab-grown should show you that we are going to benefit from the natural tailwinds of this segment of the industry growing. So we still are extremely confident on the B2B segment, export revenue coming in from Goldiam and Goldiam USA. We believe we can naturally grow at a healthy double-digit clip over a 2, 3 year on a CAGR basis, without a doubt. On an EBITDA basis, we continue to track in the broad range, 18% to 21%, 22%.

Addresses the long-term growth potential and profitability outlook for the core B2B business after significant LGD adoption.

Asked by Bhavya Gandhi

Lab-grown diamond industry demand/supply dynamics and ORIGEM brand positioning/customer profile Direct
Regarding the lab-grown diamond industry, we still see demand very, very robust globally... So in the smaller diamonds, that is $0.12 and below, right, prices have gone up 5% to 11% in lab-grown diamonds. Even though the production is there, the demand has exceeded production now. So that's very, very positive for Goldiam... Our positioning is very clear that this is a better diamond and this is the better way to diamonds... ORIGEM is perhaps one of the only retailers that is truly vertically integrated.

Provides insights into the broader LGD market health, price trends, and Goldiam's competitive advantage and target customer for its B2C brand.

Asked by Harshit Singhi

Impact of U.S. casting model on dot-com sales timelines and inventory management Direct
Yes, absolutely. So the time frames, as you rightly mentioned, have definitely gone up for the dot-com business... We have not seen it really impact the units as such right now. We're seeing a pretty healthy revenue coming in from dot-com... there has been an increase in inventory because of even the U.S. casting model, where we have had to effectively invest in an additional approximately 30 days of gold in our factory... We see this normalize in Q3.

Explains the operational adjustments made to mitigate tariff impacts, their effect on lead times and inventory, and the expected normalization.

Asked by Dixit Doshi

3 min read 6 chapters

Detailed narrative

Strong Q2 and H1 FY26 Performance Amidst Tariff Challenges

Goldiam International delivered robust financial results for Q2 and H1 FY26, with consolidated revenues increasing by 43% and 41% year-over-year, respectively. Despite the U.S. introducing hefty tariffs (from 16% to 56%) on Indian lab-grown diamond jewellery, the company's Q2 and H1 EBITDA grew by 37%, maintaining an H1 EBITDA margin of 21.6%. Consolidated PAT also saw significant growth, up 42% in Q2 and 47% in H1, demonstrating resilience and effective mitigation strategies.

B2B Segment: US Casting Model and Growth Drivers

The B2B segment, driven primarily by lab-grown diamond jewellery exports contributing 90% to sales in Q2 FY26, successfully navigated the U.S. tariff hike by implementing a U.S. origin casting model. This involved casting raw gold in the U.S. and then shipping to India for finishing, minimizing net tariff impact. Management expects the B2B segment to grow at a 'healthy double-digit clip' over the next 2-3 years CAGR, with EBITDA margins targeted in the 18-22% range, potentially seeing an upside from the new manufacturing model.

ORIGEM (B2C) Retail Expansion and Strategy

The India-focused B2C brand, ORIGEM, reported INR2.8 crores in revenue for Q2 FY26 from an average of 6 operational stores, following INR3.2 crores in Q1. Post a QIP of INR202 crores, ORIGEM plans aggressive expansion, aiming for 20-25 operational stores by March 31, 2026, and a 'doubling of stores' within the next six months. Each store costs INR3.5-4 crores to open, with INR2.5-3 crores linked to inventory, and is expected to achieve breakeven at INR20 lakhs monthly revenue, with a payback period of less than 3 years.

Lab-Grown Diamond Industry Dynamics and Pricing

Management expressed confidence in the robust global demand for lab-grown diamonds, noting that for smaller diamonds ($0.12 and below), prices have increased by 5-11% as demand has exceeded production. They believe price declines are 'totally now a matter of the past' and do not anticipate significant impact moving forward. Goldiam's vertical integration in ORIGEM, from growing/purchasing diamonds to in-house jewellery production, is highlighted as a key competitive advantage against new entrants.

Inventory Management and Margin Outlook

Inventory levels increased in Q2, partly due to building stock for the U.S. holiday season and the additional investment required for the U.S. casting model (approximately 30 days of gold). This is expected to normalize in Q3. Gross margins for Q2 FY26 were 36% (up from 34% YoY), while H1 FY26 gross margins were 34% (down from 39% YoY). Management anticipates gross margins to be 'pretty steady if not slightly hopefully growing' in the next couple of quarters, benefiting from the U.S. casting model allowing for slightly higher pricing.

Other Expenses and Customer Engagement

Other expenses in Q2 FY26 decreased to INR15 crores from INR18.5 crores in the prior year, primarily due to reduced marketing co-op expenses with U.S. retailers and lower certification costs. The company continues to focus on expanding its wallet share with existing corporate customers and adding new ones in other geographies, leveraging its design and execution strength. The B2B business sees 85% penetration in the bridal category, with an opportunity to grow in the fashion jewellery segment.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Consumer Durables earnings calls