Goldiam International Q4 FY26 earnings call

Goldiam International reported its highest-ever revenue, EBITDA, and PAT for the financial year 2026. Consolidated revenue for FY26 crossed the INR1,000 crores mark, reaching INR1,212.3 crores, a 27.5% increase, with PAT surging 45.7% to INR170.59 crores. Q4 FY26 also demonstrated strong performance, with consolidated revenue up 21% to INR243.3 crores and PAT up 61% to INR37.2 crores, driven by a 35.9% growth in EBITDA to INR58.3 crores, achieving an EBITDA margin of 23.9%.

The India-focused B2C lab-grown diamond jewelry brand, ORIGEM, significantly expanded its footprint, doubling its store count to 24 operational stores across 12 cities, with plans to open 8-10 more by September 2026. ORIGEM recorded INR5.56 crores in Q4 FY26 revenue but incurred an EBITDA loss of INR15 crores for the full fiscal year. Management anticipates mature stores to achieve INR35 lakhs in monthly revenue and expects a payback period of under 3 years, supported by new sales enablers like a 360 3D Digital Ring Builder.

Lab-grown diamond jewelry exports constituted 88.3% of overall export sales in Q4 2026, with online revenue accounting for 27.4%. The company's hybrid casting method, which involves production in both the US and India, has been crucial for business continuity and margin growth, making Goldiam tariff-agnostic to India's custom duty changes. This operational model is projected to deliver a 200-300 bps gross margin increment on a full-year basis in FY27, further enhancing profitability.

The Board of Directors recommended a bonus share issue in a 1:3 ratio, subject to shareholder approval. As of March 31, 2026, cash and cash equivalents, including investments, stood at INR493.392 crores. The cost to open an ORIGEM store is approximately INR3.5 crores, which includes INR2.5 crores for inventory, INR50-60 lakhs for capex (furniture and fit-out), and INR30-40 lakhs for security deposits.

Goldiam operates through three primary subsidiaries: Goldiam Jewelry Limited, which handles production; Goldiam USA Inc., serving as the marketing arm for US retailers; and Eco-Friendly Diamonds LLP, responsible for in-house lab-grown diamond production. Eco-Friendly Diamonds currently produces about 10% of Goldiam's total lab-grown diamond consumption, with the remainder sourced from external vendors. This structure supports Goldiam's integrated focus on jewelry design, development, marketing, and global distribution.

Goldiam acknowledges the strong competition in the nascent Indian B2C lab-grown diamond market but leverages its advantages, including its publicly listed parentage for prime real estate, design expertise in bridal jewelry, and technological innovations like the 360 3D Digital Ring Builder. In the B2B segment, the company has successfully increased its wallet share with its top 3 US retailers, benefiting from the growing shift towards lab-grown diamonds and its unique dual casting model, which few competitors can replicate.