Goldiam International Shines Bright: Q2 & H1 FY26 Performance Amidst Tariff Headwinds

Goldiam International Ltd., a prominent manufacturer and exporter of diamonds and jewellery, has reported an excellent financial performance for the second quarter and half year ended September 30, 2025. Despite significant global trade challenges, the company demonstrated remarkable resilience and strategic agility, delivering robust growth in both revenue and profitability. For Q2 FY26, consolidated revenues surged by 43% year-on-year to ₹201.9 crore, while half-year revenues grew by 41% to ₹437.6 crore. Profit After Tax (PAT) also saw substantial increases, with Q2 PAT up by 42% to ₹31.4 crore and H1 PAT climbing by 47% to ₹65.0 crore. This stellar performance underscores Goldiam's ability to adapt and thrive in a dynamic market environment.

The period was marked by a significant challenge: the United States raised tariffs on several Indian export categories, including lab-grown and natural diamond jewellery, from approximately 16% to a steep 56%. This policy shift created considerable disruption for Indian jewellery exporters. However, Goldiam responded swiftly by implementing a strategic US-origin casting model. This innovative approach involves casting raw gold into unfinished jewellery pieces within the United States, which are then shipped to India for alterations such as polishing and diamond setting. By establishing US Product of Origin through rulings from US Customs, Goldiam effectively mitigated the net tariff impact, ensuring business continuity and sustained growth. This strategic pivot, though causing about 30 days of disruption in B2B operations during Q2, proved instrumental in maintaining the company's strong performance trajectory.

Strategic Expansion and Market Leadership

Goldiam's B2B export business continues to be a powerhouse, with lab-grown diamond jewellery contributing a dominant 90% to the overall export sales mix during Q2 FY26, a significant increase from 77% in Q2 FY25. This highlights the company's successful transition and leadership in the rapidly growing lab-grown diamond segment. Online revenue also played a crucial role, accounting for 20% of the total revenue during Q2 FY26. The company's order book stood strong at ₹200 crore as of September 30, 2025, indicating healthy demand for the upcoming holiday season.

Domestically, Goldiam is aggressively expanding its B2C lab-grown diamond jewellery brand, ORIGEM. The brand now operates 11 stores across key Indian cities like Mumbai, Noida, and Bengaluru, including marquee mall locations such as Phoenix Palladium and R City Mall. ORIGEM recorded a total revenue of ₹2.8 crore in Q2 FY26. The company has identified 15-18 new locations and aims to have 20-25 operational ORIGEM stores by March 31, 2026. To further bolster its domestic presence, Goldiam successfully raised ₹202 crore through a Qualified Institutional Placement (QIP) during Q2, specifically to accelerate ORIGEM's expansion. Additionally, the launch of www.origemindia.com establishes a dedicated online platform for the brand, strengthening its omnichannel sales strategy.

Financial Prudence and Future Outlook

Goldiam maintains a robust financial position, characterized by a debt-free balance sheet and substantial cash and cash equivalents (including investments) totaling ₹463.93 crore as of September 30, 2025. This strong liquidity provides the company with ample ammunition for inorganic growth opportunities and consistent shareholder returns. Goldiam is committed to a minimum payout ratio of 50% of its annual Standalone PAT, distributed as dividends or through share buybacks.

Management's outlook remains positive, with expectations of healthy double-digit growth in the B2B segment over the next 2-3 years. EBITDA margins are guided to remain in the 18-22% range. The company's proactive approach to market challenges, coupled with its strategic investments in the lab-grown diamond segment and retail expansion, positions Goldiam for sustained long-term growth. The focus on expanding wallet share with existing customers and exploring new geographies like Israel, the Middle East, and Australia further diversifies its revenue streams and strengthens its global footprint.

Goldiam International's Q2 and H1 FY26 performance reflects a company that is not only navigating complex global trade dynamics with agility but also strategically investing in its future growth engines. The successful mitigation of US tariffs, the aggressive expansion of ORIGEM, and a strong financial foundation underscore Goldiam's disciplined execution and strategic clarity, reinforcing investor confidence in its continued success.