IGI India sees FY26 volume growth as LGD certification rises

Why diamond certification demand is rising

International Gemmological Institute (India) Limited (IGIL.NS), India’s largest independent gem and jewellery certification company, is reporting stronger demand across both natural and lab-grown diamond certification. Management linked the trend to higher consumer focus on verification and transparency, especially as lab-grown diamonds (LGDs) become more common in retail channels. IGI said the natural diamond segment’s growth is being led by higher penetration and market share gains. In lab-grown loose stones, it said the robust growth of the last two years has continued in 2025, with volume growth in excess of 21%. The company also pointed to stability in LGD pricing over the last 18 months, which has supported certification volumes and planning.

Natural diamonds: certification volumes surge as consumers seek assurance

IGI’s leadership said certification of natural diamonds has increased about 45%, reflecting a stronger need to confirm authenticity. The CEO noted that buyers increasingly want to know the value of what they are paying for and ensure the stone is not lab-grown. This shift matters because, historically, the market did not face the same level of product substitution risk from lab-grown stones. As LGDs scale up in visibility and supply, the certification step becomes more central to purchasing decisions for natural diamonds. IGI said it has expanded its footprint in natural diamond certification and continues to see supportive industry fundamentals.

Lab-grown diamonds: volume-led momentum continues

IGI said lab-grown loose stones remain a key driver of its growth, with continuing traction in India and global markets. Management flagged stabilisation in wholesale LGD prices, supporting steady demand for certification. In the lab-grown loose segment, IGI highlighted continuing robust growth and also said pricing has remained stable for the past 18 months. It added that an evolving landscape linked to grading principles adopted by other certification players has reinforced IGI’s confidence about further penetration in the segment. Separately, IGI also described lab-grown diamonds as gaining acceptance globally due to affordability and sustainability, driving higher certification volumes.

Financial and operating snapshot from the latest update

IGI reported EBITDA of INR 174 crore, up 37%, with margins at 57.66%. Profit for the period rose 12% year on year to INR 141 crore (about $16.5 million) and increased 24% from the previous quarter. Total certification volumes reached 3.03 million reports. On segment performance, IGI said lab-grown diamond segment revenue increased 24% while natural diamonds grew 14%. It also reported that the lab-grown diamond loose stone segment rose 24% year on year and the natural diamond loose stone segment rose 14%.

Mix shift: why revenue and volumes can move differently

IGI’s commentary highlighted that loose diamonds tend to carry higher realisations per certificate than jewellery certification. It said loose diamonds are individually certified across 14 grading parameters, while jewellery certification is typically cluster grading with split grades that results in lower per-report pricing. The company also reported that revenue in the lab-grown diamond segment rose 34% year on year, outpacing volume growth of 11%, and linked that to a mix shift from lower-realisation jewellery to higher-value loose diamonds. This mix dynamic is important for investors tracking how average realised price per report and margins behave across cycles.

Capacity expansion: new Surat facility at Hira Bourse

IGI said it is setting up a new certification facility in Surat’s Hira Bourse, Ichhapore, alongside its existing centre in Varachha. The expansion comes as IGI highlights a sharp rise in LGD exports. It cited LGD exports increasing from 7.81 million carats in FY 2023–24 to 15.29 million carats in FY 2024–25. The company’s model includes in-lab, in-factory, and mobile certification services, which it believes helps it match customer workflow needs and scale volumes.

Market structure: leadership position and barriers to entry

IGI said it holds a dominant position in India’s certification market with an estimated 50% market share. It also cited an estimated 85–90% share of natural diamond loose stone certification and 55–65% of lab-grown loose diamonds. Management attributed entry barriers in certification to trust, expertise, and legacy, noting that only a few globally recognised laboratories have the credibility required for diamond certification. The company also characterised its position across natural and lab-grown segments as duopoly-like, supporting its ability to capture incremental volumes at minimal incremental cost.

Guidance and what management is watching in FY2026

IGI expects continued growth in certification volumes across both natural and lab-grown diamonds for the remaining quarters of FY2026. Management indicated plans to maintain EBITDA and PAT margins, supported by operational efficiencies and stable average realised prices per report. It also said it plans to expand service offerings and capacity in existing and new markets, targeting incremental market share gains. At the sector level, IGI noted macro support from rising disposable incomes, an expanding middle class, and increasing preference for certified diamonds and jewellery. It also acknowledged exposure to broader economic conditions and potential technological developments in gemstone verification.

Key metrics mentioned by the company

What this means for investors tracking the certification theme

The data points suggest IGI’s growth is being supported by two parallel demand drivers: authenticity assurance for natural diamonds and expanding adoption of lab-grown jewellery. Management’s emphasis on stable LGD wholesale pricing over recent quarters and stable realised prices per report indicates a focus on protecting profitability while scaling volumes. The company’s service formats in-lab, in-factory, and mobile labs are positioned as operational levers to meet customer turnaround needs. IGI also pointed to cost-control measures and operational efficiencies as factors behind margin expansion, even as top-line growth moderated due to extended breaks by manufacturers after the festive season in India. Separately, the company cited consolidated revenue growth of 17% in CY24, with revenue of INR 1,053.16 crore versus INR 898 crore in CY23, alongside comments that full-year revenue growth was close to 17% on 27% volume growth.

Conclusion

IGI’s latest update underscores rising certification intensity in natural diamonds and sustained expansion in lab-grown diamond certification, supported by stable pricing and capacity additions in Surat. The company’s FY2026 guidance points to continued volume growth with an aim to maintain margins through operational efficiencies and steady realised prices per report.