International Gemological Institute Limited — Q3 FY26 earnings call

Call held 27 Jan 2026

Management summary

International Gemmological Institute (India) Limited (IGIL) delivered a robust performance for the 12-month period ending December 2025, exceeding its initial guidance. Growth was driven by a significant surge in natural diamond certifications and continued momentum in the lab-grown diamond (LGD) segment. The company maintained industry-leading EBITDA margins of nearly 60%, benefiting from strong operating leverage and a stable pricing environment for certifications.

Highlights

  • Revenue from operations for 2025 reached ₹1,229 crores, a 17% YoY increase from ₹1,053 crores.

  • EBITDA rose to ₹737 crores in 2025, up 23% YoY, with margins expanding to 59.9%.

  • Full-year PAT stood at ₹532 crores, reflecting a 24% YoY growth and a 43.3% margin.

  • Total report volumes grew by 21% YoY to 12.81 million reports for the full year.

  • Natural diamond certification saw a sharp acceleration, growing 45% YoY in Q4 2025.

  • Lab-grown diamond (LGD) sector revenue grew by 35% in Q4, with volume growth exceeding 21% for the year.

  • Cash and bank balances across the group reached approximately ₹860 crores as of December 2025.

  • The company is transitioning its reporting cycle to April-March, resulting in a 15-month reporting period ending March 2026.

Key financials

  1. Revenue ₹1,229 Cr +17%YoY
  2. EBITDA ₹737 Cr +23%YoY
  3. EBITDA Margin 59.9%
  4. PAT ₹532 Cr +24%YoY
  5. Report Volume 12.81 Mn +21%YoY
  6. Cash Balance ₹860 Cr

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

  • India Business (Q4)
    33% Certification Revenue Growth53% ND Loose Stones Growth47% LGD Loose Stones Growth19% ASP Improvement
  • Consolidated (Full Year)
    22% LGD Growth20% ND Growth22% LGD Jewelry Growth

Guidance & targets

Volume

  • LGD Segment Performance Volume · FY26 · Medium confidence Repeat 2025 performance
    We remain confident of repeating the volume and revenue performance in this segment in the financial year 2026.

    — Tehmasp Printer, MD and CEO

Margin

  • Average Selling Price (ASP) Margin · Next few quarters · High confidence 900-950
    we've been in the 900-950 range as far as ASP is concerned. So, I think nothing structural, we don't foresee any structural changes here.

    — Eashwar Iyer, CFO

Headcount

  • New Recruitment Headcount · Immediate · High confidence Large round

    From 200 today

    there is another round of large recruitment that is happening because we are seeing an exponential growth on the volume front as we ended the year.

    — Eashwar Iyer, CFO

Risks & concerns

  • Increase in Receivable Days

    medium

    Debtors increased from 15.5% to 19% of sales in 2025 due to 60-day credit terms offered to large lab growers.

    Analyst acknowledged

  • Retailer Self-Certification

    medium

    A major Indian retailer launched its own LGD brand with in-house certification, potentially bypassing IGI.

    Analyst deflected

  • LGD Pricing Stability

    low

    While wholesale LGD prices have stabilized, any further crash could theoretically impact the perceived value of certification, though management downplays this.

    Both acknowledged

Areas of evasion (1)

  • Specific market share numbers for the US vs India in the ND segment.

Q&A highlights

2 direct
Surge in Natural Diamond Growth Direct
People are also certifying more of natural to ensure that it is not lab grown. So, both the diamonds are actually complementary to each other.

Explains that LGD growth is actually driving ND certification demand as consumers seek verification of origin.

Asked by Harit Kapoor

Impact of US Tariffs Direct
One is most of -- quite a majority of our sales is in the domestic market. There is no impact of tariff at all.

De-risks the company from geopolitical trade tensions affecting diamond exports to the US.

Asked by Shrenik Mehta

Competition from Retailer Self-Certification Partial
a third-party independent certification is the most important aspect when you are buying a certificate... we are there to give you a third-party independent certification.

Addresses the risk of large retailers bypassing independent labs, asserting that consumer trust remains with third-party bodies like IGI.

Asked by Angad Katdare

1 min read 5 chapters

Detailed narrative

Strategic Shift in Reporting Cycle

IGIL is moving its reporting year from a January-December cycle to an April-March cycle to align with Indian regulatory requirements. Consequently, the company will report a one-time 15-month financial period ending March 2026. This transition comes on the heels of a record-breaking 2025 where the company achieved ₹1,229 crores in revenue.

Natural Diamond Certification Surge

A surprising highlight was the 45% growth in natural diamond certifications in Q4 2025. Management attributed this to the 'LGD effect,' where the prevalence of lab-grown diamonds has made consumers more anxious to verify the origin of natural stones. This has turned LGDs into a catalyst for natural diamond certification rather than just a competitor.

Lab-Grown Diamond (LGD) Resilience

The LGD segment continues to show robust volume growth, exceeding 21% for the full year. Management noted that wholesale pricing for LGDs has stabilized over the last 18-20 months, which has helped maintain stable certification pricing. The retail landscape for LGD jewelry is expanding rapidly, with over 1,000 showrooms now active across India.

Margin Expansion and Operating Leverage

The company demonstrated significant operating leverage, with EBITDA margins reaching 59.9%, a 300 bps improvement over the previous year. This expansion was driven by an 11% increase in report volumes and a 19% improvement in Average Selling Price (ASP) in the India business, as the mix shifted toward higher-value loose stone certifications.

US Market Strategy and Cost Rationalization

While India remains the primary growth engine (53% growth), management is actively rationalizing costs in the US. They are cutting 'wasteful expenses' to redeploy resources into building a stronger sales organization. A fresh leadership team has been inducted in the US to make it a critical strategic priority for 2026.

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