Goldiam International Limited — Q4 FY25 earnings call

Call held 27 May 2025

Management summary

Goldiam International reported a landmark FY25 with strong top-line and bottom-line growth, crossing INR 100 crores in profits. The company saw significant contribution from lab-grown diamond jewelry exports and online sales. Management discussed the impact of new US tariffs, their retail expansion plans for the ORIGEM brand in India, and strategies for maintaining robust margins amidst competitive dynamics.

Highlights

  • Q4 FY25 consolidated revenue grew 33% YoY to INR 201.84 crores.

  • Full Year FY25 revenue grew 30% to INR 800.64 crores.

  • Q4 FY25 EBITDA increased 44.2% YoY to INR 39.5 crores, with full year EBITDA growing 40% to INR 179.2 crores.

  • FY25 EBITDA margin remained strong at 22.4%.

  • Full Year FY25 Profit After Tax (PAT) reached INR 117.1 crores, up 29% YoY, crossing the INR 100 crore profit mark.

  • Lab-grown diamond jewelry exports contributed 81.8% to overall export sales mix in Q4 FY25, up from 54% in Q4 FY24.

  • Online revenue accounted for 29.5% of total revenue in Q4 FY25.

  • Order book stood at INR 140 crores as of March 31, 2025, with cash and cash equivalents at INR 288.37 crores.

Concerns

  • Incremental 10% US Tariffs on Lab-Grown Diamond Jewelry

Key financials

2 periods

Q4

  • Consolidated Revenue
    ₹201.84 Cr
    YoY +33%
  • EBITDA
    ₹39.5 Cr
    YoY +44.2%
  • PAT
    ₹23.2 Cr
    YoY +30%

FY25

  • Consolidated Revenue
    ₹800.64 Cr
    YoY +30%
  • EBITDA
    ₹179.2 Cr
    YoY +40%
  • EBITDA Margin
    22.4%
  • PAT
    ₹117.1 Cr
    YoY +29%

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

  • Lab-Grown Diamond Jewelry Exports
    81.8% Contribution to Export Sales Mix
  • Online Revenue
    29.5% Contribution to Q4 Revenue

Guidance & targets

Profitability

  • EBITDA Margin Profitability · long-term · High confidence 18-22%
    We continue to have our business geared towards this range of EBITDA guidance.

    — Anmol Bhansali, Managing Director

  • EBITDA Margin (short-term impact) Profitability · Q1 and Q2 FY26 · High confidence 2-3 percentage points softer
    We see Q1 potentially slightly Q2 to be a little bit softer by only 2 to 3 percentage points, not more.

    — Anmol Bhansali, Managing Director

  • Gross Margin Profitability · future · Medium confidence slightly upwards
    I think the gross margins will naturally tend slightly upwards.

    — Anmol Bhansali, Managing Director

  • ORIGEM Store Breakeven Revenue Profitability · over time · High confidence INR 20 lakh monthly
    What I can say is the model is built to do a breakeven around that INR 20 lakh monthly revenue figure.

    — Anmol Bhansali, Managing Director

Distribution

  • ORIGEM Store Expansion Distribution · current financial year (FY26) · High confidence 20-25 stores
    We are expecting in this current financial year to have around 20 to 25 stores as per the current flow of plans.

    — Anmol Bhansali, Managing Director

Revenue

  • ORIGEM Revenue per store Revenue · future · Medium confidence cross INR 2 crores
    Absolutely. I think what we are seeing is we are hoping to even cross that number [INR 2 crore per store revenue].

    — Anmol Bhansali, Managing Director

  • US B2B Business Sales Revenue · next 3 to 4 years · High confidence double sales
    There is certainly a possibility and visibility, and that is the aim to double our sales over the next 3 to 4 years in our core B2B business, provided we don't have macroeconomic issues that are truly out of our control.

    — Anmol Bhansali, Managing Director

Capital

  • Fundraise Resolution Capital · as needed · High confidence up to INR 400 crores
    The Board resolution was an enabling resolution on a higher side to allow us a fund raise up to INR 400 crores.

    — Anmol Bhansali, Managing Director

Inventory

  • ORIGEM Inventory per store Inventory · current · High confidence INR 2-2.5 crores
    The inventory per store that is being built at ORIGEM is between INR 2 crores to INR 2.5 crores on average.

    — Anmol Bhansali, Managing Director

Risks & concerns

  • Incremental 10% US Tariffs on Lab-Grown Diamond Jewelry

    high

    Expected to cause 2-3 percentage point softness in EBITDA margin for Q1 and Q2 FY26, but management is actively mitigating by passing on costs and controlling raw material prices.

    Management acknowledged

  • Inventory Buildup leading to negative cash flow from operations

    medium

    Explained as investment in new product testing for B2B U.S. retailers (consignment model) and inventory for new ORIGEM stores, a historical pattern linked to revenue growth.

    Analyst acknowledged

  • Risks associated with rapid ORIGEM retail expansion (e.g., high rents, diluted checks)

    low

    Management stated they are conservative in location selection, will not pay above market rents, and have hired experienced retail team members to mitigate these risks.

    Analyst acknowledged

Areas of evasion (2)

  • specific per-store metrics for ORIGEM (deferred to offline)
  • detailed OPEX and marketing spend for retail stores (deferred to email)

Q&A highlights

3 direct
EBITDA and Gross Margin Guidance, impact of US tariffs Direct
We may see a slight softness in Q1, and potentially Q2 only in this financial year due to the lag of passing over the price change due to the tariffs in the U.S., which, as we know, is an incremental 10% that's been added on. We are in the process of passing this over, and we have already started splitting it with customers 5% each.

Directly addresses a key risk (tariffs) and provides clarity on short-term margin pressure and long-term stability with mitigation strategies.

Asked by Bhavya Gandhi

ORIGEM Retail Expansion and necessity of fundraise Direct
So we are expecting, as I mentioned, to have about 20 to 25 stores by end of this fiscal year. This is without looking at evaluating the fund raise and evaluating any fundraise. That will be the basis on what opportunity is available to us and whether we want to enhance the growth engine of ORIGEM and speed up the store expansion faster.

Clarifies the company's capital allocation strategy, indicating that immediate retail expansion plans do not necessarily depend on the large fundraise, which is for more aggressive growth.

Asked by Dixit Doshi

US Business Growth and competitive intensity in Lab-Grown Diamonds Direct
At our FY '25 numbers, which was our all-time high of INR 800 crores, we were approximately, we have completed about $90 million of sales for the year... There is certainly a possibility and visibility, and that is the aim to double our sales over the next 3 to 4 years in our core B2B business... And truly, we are the lowest price competitor compared to any of the current competition out there. And that is also despite being at a 42% to 45% gross margin.

Provides insight into the core export business's growth aspirations and Goldiam's competitive positioning and cost advantage in the nascent Indian LGD retail market.

Asked by Ankit Gupta

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY25

Goldiam International delivered a robust financial performance in FY25, with consolidated revenue growing 30% to INR 800.64 crores. EBITDA for the full year increased 40% to INR 179.2 crores, maintaining a strong margin of 22.4%. Profit After Tax (PAT) also saw a significant rise of 29% to INR 117.1 crores, marking the first time the company crossed the INR 100 crore profit milestone. Q4 FY25 alone contributed INR 201.84 crores in revenue and INR 23.2 crores in PAT, both up 33% and 30% YoY respectively.

Impact and Mitigation of US Tariffs

The company acknowledged an incremental 10% tariff on lab-grown diamond jewelry exports to the U.S., which is expected to cause a 'slight softness' of 2-3 percentage points in EBITDA margin for Q1 and Q2 FY26. Management is actively mitigating this by passing on the tariffs to customers, splitting the cost 5% each, and pushing down raw material prices. They anticipate the tariffs to be fully passed on within another quarter, allowing the business to return to its guided EBITDA range of 18-22%.

Expansion of ORIGEM Retail Footprint in India

Goldiam is aggressively expanding its domestic retail brand, ORIGEM, which currently has 6 operational stores in Mumbai. The company plans to open 'around 20 to 25 stores' in the current financial year (FY26), expanding into Delhi NCR, Bangalore, and Hyderabad. An enabling resolution for a fundraise of 'up to INR 400 crores' has been passed, intended to propel faster expansion, though the initial 20-25 stores are planned without necessarily needing this fundraise.

ORIGEM Store Economics and Competitive Advantage

ORIGEM stores are currently selling jewelry at a high gross margin of 42% to 45%. Management stated that the model is built to achieve breakeven around 'INR 20 lakh monthly revenue' per store, with some stores already breaking even in the first month. Goldiam leverages its deep integration, from growing its own diamonds to manufacturing jewelry in-house, to achieve a significant cost advantage, positioning it as the 'lowest-priced lab-grown retailer' compared to start-up competitors.

B2B Export Business Growth and Lab-Grown Diamond Focus

The B2B export business continues to be a core focus, with lab-grown diamond jewelry exports contributing 81.8% to the overall export sales mix in Q4 FY25, up from 54% in Q4 FY24. The average realization for lab-grown diamond jewelry was $742 per unit in Q4 FY25. Management aims to 'double our sales' in the core B2B business over the next 3 to 4 years, driven by volume growth and an increased portion of higher karatage diamonds.

Working Capital Dynamics and Inventory Management

The company noted an increase in inventory, which is attributed to investments in new product testing for large U.S. retailers under a consignment model, and inventory buildup for the expanding ORIGEM stores (INR 2-2.5 crores per store). Concurrently, receivables have reduced, largely due to the growth of online sales, which accounted for 29.5% of Q4 revenue and offer a negative working capital cycle with receivables collected within 10-30 days.

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