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Goldiam FY26: Record Export Performance Meets a Fast-Ramping ORIGEM Retail Bet

Goldiam International ended FY26 with its strongest year on record. Consolidated revenue rose to INR 10,212.3 million, up 27.5% year-on-year, crossing the INR 1,000 crore milestone for the first time. Profitability expanded even faster: EBITDA increased to INR 2,486.7 million (margin 24.3%), while PAT rose to INR 1,705.9 million (margin 16.7%).

Behind the headline growth was a sharp pivot in operating model. The company described itself as tariff agnostic after shifting part of its manufacturing process to the United States to establish US Product of Origin for finished jewellery. At the same time, Goldiam is building a second growth engine in India through ORIGEM, its lab-grown diamond jewellery retail brand, which doubled its store count since January 2026.

FY26 financial performance: scale with margin expansion

Goldiam’s FY26 income statement shows both growth and operating leverage. Total income for FY26 was INR 10,212 million versus INR 8,007 million in FY25. Gross profit increased to INR 3,728 million, while EBITDA rose 36.2% year-on-year.

A key feature of the year was margin improvement. EBITDA margin expanded by 155 basis points to 24.3% for FY26. Management linked margin strength partly to the hybrid US casting model, which reduces the effective tariff impact by limiting duty exposure to the India value-add component.

Goldiam also ended FY26 with a strong liquidity buffer. Cash and investments were stated at INR 4,933.92 million as of March 31, 2026, supporting both expansion plans and shareholder distributions.

Export mix: lab-grown dominance and omnichannel supply

Goldiam’s export business has shifted decisively toward lab-grown diamond jewellery. In Q4 FY26, the investor presentation shows lab-grown jewellery at 88% of export revenue, with natural diamond jewellery at 12%.

The channel mix is also meaningful. Online contributed 27% of Q4 FY26 export revenue, indicating a meaningful e-commerce linked supply component.

Management also disclosed a working-capital related detail that matters for how this model functions. About 64.5% to 65% of inventory as of March 31, 2026 was with customers on consignment as finished jewellery, to be sold in subsequent months. A further 10% was B2C inventory.

The tariff-agnostic model: operational change with margin intent

The largest strategic change highlighted in the presentation and concall was the US-based casting and dual manufacturing model. Starting September 2025, Goldiam began casting raw gold into unfinished jewellery pieces within the United States through its US subsidiary setup. India then performs alterations and finishing such as polishing and setting.

The company stated that, through US Customs rulings, it can ship finished jewellery as US Origin. This is presented as a way to reduce tariff sensitivity and provide pricing and supply dependability to US retailer customers.

On the earnings call, management quantified the impact: the incremental gross margin benefit from this model is expected to be about 200 to 300 basis points on a full-year basis. Management also suggested that the increasing complexity of such cross-border manufacturing may push industry consolidation, as smaller suppliers may struggle to match lead times while managing multi-location production.

ORIGEM: rapid COCO expansion with a clear store economics framework

ORIGEM is the company’s biggest new initiative. The presentation states that from January 2026 to the time of the update, ORIGEM doubled its store count to 24 operational stores across 12 cities in India. Q4 FY26 ORIGEM revenue was INR 55.6 million.

Management also disclosed key unit economics on the call:

• Approximate cash outlay per store: about INR 3.5 crore
• Inventory component: about INR 2.5 crore
• Fit-out capex: about INR 50 to 60 lakh
• Security deposit: about INR 30 to 40 lakh
• Monthly break-even revenue: about INR 17 to 19 lakh
• Target to reach break-even: within 6 to 9 months on average
• Target mature store monthly revenue: about INR 35 lakh
• Store payback: around 3 years or under, once mature

The expansion plan is aggressive. The company stated that 8 more stores are in the pipeline and expected to be operational by September 30, 2026. Management also said it hopes to reach about 45 to 50 COCO stores by exit FY27.

The retail scaling is currently loss-making. Management stated ORIGEM had an EBITDA level loss of about INR 15 crore for FY26, and clarified that it includes rent. The stated intent is to keep overall losses controlled even as store count increases, by moving older stores into break-even and store-level cash profitability.

Capital allocation: bonus issue and shareholder return posture

Corporate announcements show the board proposed a bonus issue in the ratio of 1:3, subject to shareholder approval. The company also reiterated its shareholder return posture in the presentation. It stated that about INR 2.5+ billion has been distributed via dividend and buyback over the last five years, and it highlighted a dividend distribution policy targeting at least 50% of annual standalone PAT via dividends and or buybacks, subject to conditions.

Takeaways

Goldiam’s FY26 stands out for two reasons. First, it delivered record scale and profitability, crossing INR 10,000 million in revenue with expanding margins. Second, it is actively reshaping its business model. The hybrid US casting structure is positioned as both a tariff hedge and a margin enhancer, with management citing a 200 to 300 bps full-year gross margin benefit.

At the same time, ORIGEM is a clear strategic bet. The company has shared concrete store economics, capex structure, break-even thresholds, and an explicit store-count target by FY27 exit. The near-term financial drag is also acknowledged with the FY26 ORIGEM EBITDA loss figure.

The FY27 setup, as described by management, is built around sustaining double-digit growth, continuing to benefit from the new US manufacturing flow, and scaling ORIGEM store count while pushing store-level productivity through sales enablers like the 3D ring builder.