International Gemological Institute Limited — Q2 FY26 earnings call

Call held 5 Nov 2025

Management summary

International Gemmological Institute (India) Limited (IGIL) delivered a strong volume-led performance in Q3 CY25, characterized by a 26% increase in report volumes. Despite macroeconomic headwinds and a slight decline in Average Selling Price (ASP) due to product mix shifts, the company maintained industry-leading EBITDA margins of 58%. Management reiterated its full-year guidance, expressing confidence in surpassing initial targets for revenue and profitability.

Highlights

  • Total Revenue for Q3 CY25 stood at ₹304 crores, registering a growth of 21% YoY

  • EBITDA reported at ₹176 crores with a strong margin of 58%

  • PAT reached ₹130 crores for the quarter, growing 18% YoY with a 43% margin

  • Reported volumes grew by 26% YoY to 3.45 million reports in Q3

  • Natural Diamond segment saw robust revenue growth of 29% during the quarter

  • 9M CY25 PAT grew by 27% YoY to ₹397 crores, with margins expanding 390bps to 44%

  • Company maintains a strong cash position with approximately ₹400 crores in reserves

Key financials

2 periods

Headline

  • Total Revenue
    ₹304 Cr
    YoY +21%
  • EBITDA Margin
    58%
  • PAT
    ₹130 Cr
    YoY +18%
  • Report Volume
    3.45 Mn
    YoY +26% QoQ +13.8%
  • Certification Income
    ₹294 Cr
    YoY +20%

9M

  • PAT
    ₹397 Cr
    YoY +27%

What they filed

Q1 FY27: revenue up 23.3%, net profit up 30.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue250 265 305 301 304 +22%320 +21%369 +21%371 +23%
EBITDA147 152 196 174 176 +20%191 +26%236 +20%224 +29%
Net profit110 114 141 127 130 +18%135 +18%180 +28%166 +31%
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

SegmentRevenue Growth (Q3)Revenue Growth (9M)
Natural Diamonds29%14%
Lab-Grown Diamonds (LGD)24%18%
LGD Jewelry26%32%

Guidance & targets

Revenue

  • Full Year Revenue Growth Revenue · CY25 · High confidence >15%
    we remain committed to delivering a strong full-year performance in line with the guidance, which was over 15% revenue growth

    — Eashwar Iyer, CFO

Profitability

  • Full Year EBITDA Growth Profitability · CY25 · High confidence 20%
    and 20% EBITDA growth that we had indicated at the beginning of this year.

    — Eashwar Iyer, CFO

Margin

  • PAT Margin Margin · Sustainable · Medium confidence 40-45%
    I think we have been delivering consistently between 40-45%. I do not think there’s going to be any significant change there.

    — Eashwar Iyer, CFO

Other

  • Long-term Industry Growth Outlook Other · next 3-4 years · Medium confidence Sustainable growth
    I think, ride the industry growth, so to say, over the next three to four years.

    — Eashwar Iyer, CFO

Risks & concerns

  • Macroeconomic headwinds in US and European markets

    medium

    Management noted softness in Belgium and US entities, though offset by strong performance in India, Middle East, and China.

    Management acknowledged

  • Realization decline due to product mix shift

    medium

    A 5% decline in consolidated realization per report was noted, primarily due to smaller carat sizes in jewelry.

    Analyst acknowledged

  • Steep increases in gold and silver prices

    low

    Management stated that despite these headwinds, the company continues to deliver strong revenue growth across all categories.

    Management downplayed

Areas of evasion (1)

  • Specific quantification of LGD export volumes (claimed they do not track this data point).

Q&A highlights

2 direct
Realization (ASP) Decline Direct
What we have seen during the quarter is a very high incidence of smaller carat size natural diamond and lab-grown jewelry coming in for certification... driven purely by a change in the carat size.

Explains why revenue growth (21%) lagged volume growth (26%), confirming it's a mix issue rather than pricing pressure.

Asked by Harit Kapoor, Investec

Impact of US Tariffs Direct
From a certification point of view, tariff has really been quite insignificant even in the international market.

Management clarifies that tariffs on physical goods do not materially impact the demand for certification services, especially with India's strong domestic market.

Asked by Rajesh Jain, RK Capital

Geographical Mix and International Softness Partial
Normally, US and European markets have a higher realization and that has not been doing too well... India ASP for the quarter has seen a 2% increase.

Reveals that while the consolidated ASP is down, the core Indian market is actually seeing realization growth, offsetting weakness in the West.

Asked by Smith Gala, RSPN Ventures

2 min read 5 chapters

Detailed narrative

Volume Growth Outpaces Revenue Amid Mix Shifts

IGIL reported a robust 26% YoY growth in report volumes, reaching 3.45 million for the quarter. However, total revenue grew at a slightly lower rate of 21% to ₹304 crores. This divergence was explained by management as a result of a 5% decline in Average Selling Price (ASP) at the consolidated level, driven by a higher incidence of smaller carat size diamonds in jewelry and a geographical shift toward lower-realization markets like China and the Middle East, while high-realization markets like the US and Europe remained soft.

Natural Diamond Segment Shows Surprising Resilience

Contrary to broader industry concerns regarding natural diamonds, IGIL's Natural Diamond segment grew by 29% in revenue during Q3 CY25. Management attributed this to market share gains and a strong domestic consumption trend in India, particularly during the festive season. For the nine-month period, natural diamonds grew by 14%, indicating a significant acceleration in the most recent quarter.

Lab-Grown Diamond (LGD) Evolution Continues

The LGD segment remains a key growth driver, with revenue increasing 24% in Q3 and LGD jewelry growing 26%. Management believes the LGD evolution is still in its early stages and expects it to propel industry growth for the next 3-4 years. Notably, LGD jewelry has shown the highest growth rate on a nine-month basis at 32%, reflecting a shift in consumer preference toward studded lab-grown products.

Geographical Diversification Buffers Global Headwinds

India continues to be the primary engine for IGIL, contributing approximately 75% of group revenue and seeing a 2% increase in ASP. This domestic strength has effectively buffered the company against softness in the US (12% of revenue) and Europe. The Netherlands holding, which includes high-growth markets like Dubai and China, contributed another 12.5% of revenue, with the Netherlands business itself growing at 20%.

Strong Cash Position and Strategic Brand Building

IGIL ended the period with approximately ₹400 crores in cash reserves and expects to generate roughly ₹500 crores in PAT annually. Management indicated that this capital would be utilized for dividends and potential acquisitions. Additionally, the company made its first major move into consumer-facing brand building by sponsoring the Women’s World Cup Cricket Team, an investment they believe will build direct consumer connect without significantly impacting Q4 margins.

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