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IGI ends March 2026 with strong volumes and expanding margins

International Gemological Institute Limited (IGI) reported a strong operating performance for the 15-month period ended March 31, 2026, a transition period as the company moved to an April to March reporting cycle. Over this 15-month window (Jan 2025 to Mar 2026), consolidated revenue from operations rose to INR 15,976 million, supported by 16.45 million certification reports. The operating model continued to translate growth into profitability. Group EBITDA came in at INR 9,728 million and PAT at INR 7,112 million, with margins expanding year on year.

For the Jan to Mar 2026 quarter, the company again delivered broad-based growth. Consolidated certification revenue increased to INR 3,587 million on volumes of 3.64 million reports, while EBITDA rose to INR 2,360 million and PAT to INR 1,796 million. Management commentary highlighted that rising certification intensity across both natural and lab grown diamonds, alongside expanding retail networks, is structurally supportive for independent certification players.

Growth engine: lab grown diamonds and mix-led resilience

The quarter’s growth was led by lab grown diamonds (LGD). Management disclosed that LGD loose stone certification revenue grew 35% year on year in Jan to Mar 2026, and LGD jewelry certification revenue grew 29%. Over the 15-month period, LGD loose stones grew 25% and LGD jewelry grew 23%. The CFO attributed the strong LGD loose stone growth to new customer acquisitions and increased capacity at some key growers.

Natural diamonds (ND) remained stable in loose stones but jewelry certification softened. In the Jan to Mar 2026 quarter, ND loose stones grew 10% year on year, while ND jewelry declined 19%. Management attributed the ND jewelry weakness to a slowdown in the India market driven by steep increases and volatility in gold and silver prices.

The revenue mix matters because average realized price (ARP) is largely a function of what category grows faster in a given period. ARP rose 4% year on year to INR 987 in the quarter, but declined 1% year on year to INR 940 in the 15-month period. In the earnings call, management stated there were no structural pricing changes during the quarter and suggested mix is the right way to interpret ARP movements.

Financial summary (Consolidated)

Note: EBITDA is stated excluding other income as per the investor presentation.

Segment mix: LGD gaining share, jewelry more variable

In the consolidated 15-month period, IGI’s certification revenue mix leaned increasingly toward LGD loose stones. The investor presentation provided a segment revenue table that shows LGD loose stones at INR 8,558 million out of total consolidated certification revenue of INR 15,465 million. ND loose stones were INR 2,497 million, ND jewelry INR 2,873 million, LGD jewelry INR 1,149 million, and gemstones and other certification INR 389 million.

This mix matters because the company’s growth pattern is not uniform across categories. In the quarter, LGD loose stones grew much faster than ND loose stones, while ND jewelry contracted. As a result, the quarter’s mix shifted toward higher growth categories, supporting ARP and helping maintain EBITDA margin at 64%.

On the standalone India business, the company posted higher reported margins, but also showed similar mix dynamics. For the 15-month period, India certification revenue was INR 12,339 million, with LGD loose stones at INR 7,308 million and ND loose stones at INR 2,045 million. India EBITDA for the 15-month period was INR 9,198 million with about 73% margin, and PAT was INR 7,215 million.

Strategy: gemstones entry via AGL, and investments in brand and efficiency

A key strategic milestone for the year was the acquisition of American Gemological Laboratories (AGL) in January 2026. Management described AGL as strengthening IGI’s position in the color stone certification market and opening a long-term growth avenue beyond diamonds. The CFO clarified that the Jan to Mar 2026 quarter reflects the first consolidation of AGL financials, with two months of revenue and expenses included. AGL revenues are included under the gemstones revenue line, and the CFO quantified that this consolidation added around 2% to revenue growth and around 3% to EBITDA growth for the quarter.

The company also highlighted brand building initiatives aimed at strengthening consumer awareness of independent certification. Management referenced partnerships around the ICC Women’s World Cup broadcast and with Gujarat Titans in the IPL, along with a consumer campaign titled Heera Ki Asli Pehchan.

Operationally, management discussed integrating AI and ML into grading operations to improve turnaround times, enhance service quality, and increase efficiency. In Q&A, the CFO emphasized that these investments are important for the long haul and that margin protection is intended even as such investments continue.

Outlook and what to watch

In the earnings call, management reiterated an intent to deliver around 15% revenue growth and around 20% EBITDA growth in the coming year, consistent with what they described as their target over the last two years. They also guided toward maintaining margins at broadly similar levels, stating they do not expect erosion.

The near-term swing factor remains jewelry certification, particularly in natural diamonds, where management acknowledged the impact of gold and silver price volatility. At the same time, IGI sees clear visibility in LGD volumes driven by manufacturing capacity additions in India, which management described as planned to increase over the next few years.

The period ended March 2026 shows a company that is expanding volumes, maintaining strong margins, and widening its addressable market with the entry into color stones through AGL. For investors tracking IGI, the next set of checkpoints are whether ND jewelry stabilizes as metal price volatility normalizes, and how quickly the new gemstones vertical begins to show material scale within consolidated revenue.