Goldiam International Q3 PAT Soars 37%, Stock Jumps 12%

Introduction

Goldiam International Ltd. saw its stock price surge by 12.44% to Rs 410.35 following the announcement of strong financial results for the third quarter of fiscal year 2026. The company reported a significant 37% year-on-year increase in consolidated net profit, underscoring robust operational performance and growing market demand, particularly in the lab-grown diamond segment.

Stellar Q3 Financial Performance

For the quarter ended December 31, 2025, Goldiam International posted a consolidated net profit of Rs 68.4 crore, a substantial rise from Rs 49.8 crore in the same period of the previous fiscal year. The company's revenue from operations also witnessed healthy growth, increasing by 18% year-on-year to Rs 339.7 crore from Rs 288 crore. This growth was primarily fueled by strong export demand, which remained resilient despite concerns over international tariffs.

Margin Expansion and Profitability

The company's profitability metrics showed marked improvement. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q3 FY26 stood at Rs 90.8 crore, up 28.2% from Rs 70.8 crore in Q3 FY25. The EBITDA margin expanded by 210 basis points to 26.7%, compared to 24.6% a year ago. Similarly, the Profit After Tax (PAT) margin improved to 20.1% from 17.3% in the corresponding quarter last year, indicating enhanced operational efficiency and effective cost management.

Consistent Growth in 9M FY26

The strong performance in the third quarter builds on a consistent growth trajectory for the fiscal year. For the nine months ended December 31, 2025, Goldiam's consolidated revenue grew by 30% to Rs 777.34 crore. The net profit for the same period rose by an impressive 42% to Rs 133.36 crore, reinforcing the company's sustained momentum.

Lab-Grown Diamonds: The Key Growth Driver

A significant factor behind Goldiam's success is its strategic focus on lab-grown diamond (LGD) jewellery. In Q3 FY26, LGD exports constituted 90.5% of the company's total export sales, a sharp increase from 80% in the same quarter of the previous year. This shift highlights the company's ability to capitalize on changing consumer preferences and market trends. Furthermore, the contribution from online revenue channels grew to 31.6% of total revenue, demonstrating a successful omnichannel approach.

B2C Expansion with ORIGEM

Goldiam is also aggressively expanding its domestic retail footprint through its B2C lab-grown diamond jewellery brand, ORIGEM. The brand recorded a revenue of Rs 5.65 crore in Q3 FY26. During the quarter, the company signed Letters of Intent (LOIs) for 20 additional ORIGEM stores. Management plans to open 12-14 new stores by March 2026, which would bring the total count to between 24 and 26. An additional 15 stores are planned for the first half of the next financial year, signaling a strong push into the direct-to-consumer market.

Strong Financial Position and Shareholder Returns

The company's balance sheet remains robust. As of December 31, 2025, Goldiam held cash and cash equivalents, including investments, of Rs 504.1 crore, underscoring a strong liquidity position to fund its expansion plans. Reflecting its confidence in the business's performance and outlook, the Board of Directors proposed an interim dividend of Rs 2.75 per share.

Management Outlook

Executive Chairman Rashesh Bhansali stated that the company's B2B jewellery export business continues to deliver consistent growth and margins. He attributed this to an increased wallet share from existing customers, the addition of new large-format US retailers, and strategic expansion into new markets like Europe, the Middle East, and Australia. Managing Director Anmol Bhansali added that the ORIGEM brand is experiencing strong traction, particularly in premium malls, and that the national store rollout strategy is gaining significant momentum.

Conclusion

Goldiam International's Q3 FY26 results reflect a company successfully executing a well-defined strategy. The strong growth in revenue and profitability, driven by the high-margin LGD segment and an expanding retail presence, has been well-received by the market. With a healthy order book of approximately Rs 180 crore and a clear roadmap for both B2B and B2C expansion, the company is well-positioned to continue its growth trajectory.