IGI India Shines Bright: A Deep Dive into Q3 & 9M CY25 Performance

International Gemmological Institute (India) Limited (IGI) has reported a robust performance for the third quarter and nine months ended September 30, 2025, demonstrating strong growth momentum across its diverse business segments. The company's consolidated revenues from operations surged by 21% year-on-year in Q3 CY25, reaching INR 303.7 crore, while EBITDA grew by 20% to INR 176.3 crore. This impressive growth was underpinned by a significant 26% increase in total certification volumes, which stood at 3.45 million reports for the quarter. For the nine-month period, IGI delivered a 15% revenue growth and a 22% EBITDA growth, showcasing consistent operational excellence despite prevailing macroeconomic challenges.

The company's certification revenue, a key driver of its financial health, exhibited strong performance across all categories. Natural Diamonds (ND) revenue grew by 29% year-on-year in Q3 CY25, contributing INR 49.0 crore. Lab-Grown Diamonds (LGD) continued its strong trajectory with a 24% growth, reaching INR 153.8 crore. The jewelry segments also played a crucial role, with ND Jewelry growing by 7% to INR 61.5 crore and LGD Jewelry by a significant 26% to INR 24.3 crore. While the average realized price (ARP) per report saw a slight decline of 5% year-on-year in Q3 CY25 (from INR 898 to INR 854), this was primarily attributed to a shift in product mix towards lower carat ND loose stones and LGD Jewelry, rather than a direct pricing pressure. Management clarified that pricing has remained stable over the last few quarters.

Strategic Initiatives and Market Dynamics

IGI's management highlighted several strategic initiatives contributing to its sustained performance. The company actively engaged in brand-building by sponsoring the Women's World Cup Cricket Team, a move that garnered significant visibility, especially with India's victory. This initiative aims to build a direct connection with consumers and enhance brand recall. Furthermore, IGI is committed to corporate social responsibility, organizing a 40-day eye check-up camp at the Bharat Diamond Bourse, which received excellent feedback.

Operationally, IGI is expanding its capacity and adding fixed assets, reflected in the increased depreciation and amortization expenses. This expansion supports the growing demand for its services. Geographically, IGI is scouting for market opportunities and expanding its lab presence, including an additional lab in Dubai this year. The company's diversified presence across India, Belgium, Netherlands, Turkey, US, Middle East, and China allows it to leverage potential supply chain shifts and mitigate regional softness. While the US and European markets have shown some softness, strong performance in the Middle East and China, particularly in lab-grown diamonds, has compensated.

Outlook and Management Confidence

Management expressed strong confidence in maintaining growth momentum and delivering full-year revenue growth of over 15% and EBITDA growth of 20%, in line with their initial guidance. The long-term outlook for the lab-grown diamond industry remains positive, with management anticipating continued industry growth over the next three to four years. IGI's ability to provide innovative solutions and adapt to challenges, such as tariffs, has been a key factor in its consistent performance. The domestic market in India remains extremely strong, with tariffs having virtually no impact on local operations. The company serves the entire supply chain, from manufacturers to online and offline retailers, ensuring broad market penetration.

In conclusion, IGI India's Q3 and 9M CY25 results underscore its strategic clarity and disciplined execution. The company's ability to drive strong volume and revenue growth across diverse segments, coupled with its proactive brand-building and operational expansion, positions it well for sustained performance. Management's confident outlook, supported by a strong cash position and margin expansion, reinforces investor trust in IGI's trajectory within the dynamic gemological industry.