The International Gemological Institute (IGI) reported a significant increase in its financial performance for the second quarter of the current financial year. The company posted a standalone net profit of ₹186 crore, marking a 43% rise compared to ₹130 crore in the same quarter last year. This strong profit growth was accompanied by a 31% increase in revenue from operations, which reached ₹398 crore.
- Standalone net profit rose 43% to ₹186 crore in Q2 FY27.
- Revenue from operations increased 31% to ₹398 crore.
- EBITDA grew 39% to ₹244 crore with margin expansion of 340 basis points.
- Growth was broad-based across lab-grown diamonds, natural diamonds, jewellery, and coloured gemstones.
- Shares surged by 10%, hitting the daily upper circuit limit after earnings announcement.
What contributed to IGI's profit growth in Q2?
IGI's profit growth was driven by a combination of higher revenues and improved operational efficiency. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 39% to ₹244 crore compared to ₹176 crore in the previous year. The EBITDA margin expanded by 340 basis points, reflecting better cost management and operational execution.
Which segments showed the strongest growth?
The company experienced broad-based growth across multiple segments. Lab-grown diamond (LGD) loose stones sales rose by 37%, and LGD jewellery increased by 47%. Natural diamond loose stones and jewellery also grew by 8% and 3%, respectively. Notably, coloured gemstones, including those certified by the Asian Gemological Laboratory (AGL), surged sevenfold, highlighting diversification in product offerings.
How does IGI view the market trends in gems and jewellery?
IGI's Managing Director and CEO, Tehmasp Printer, emphasized that the quarter was marked by healthy demand and strong operational execution. He noted that IGI is category-neutral, certifying natural diamonds, lab-grown diamonds, jewellery, and coloured gemstones to provide consistent assurance to buyers and sellers. The company observes increasing adoption of lab-grown diamonds alongside sustained growth in natural diamonds and gemstones.
What is the outlook for the global gems and jewellery industry?
The global industry is experiencing a broadening of growth drivers beyond traditional diamond categories. Manufacturers and retailers are expanding their product ranges to include lab-grown diamonds, coloured gemstones, and customised jewellery. This diversification reflects changing consumer preferences and creates new opportunities within the industry ecosystem.
What role does India play in the global jewellery market?
India continues to strengthen its position as a strategic hub for the global jewellery industry. The country's manufacturing capabilities, skilled workforce, and growing domestic consumption support this role. Industry players in India are focusing on moving up the value chain by developing branded products, innovating, and engaging more effectively with international consumers.
How did the stock market react to IGI's earnings report?
Following the earnings announcement, IGI's shares surged by the daily maximum limit of 10%, reaching an intraday high of ₹353.20. As of early afternoon trading, there were pending buy orders for 12,192 shares on the National Stock Exchange (NSE), with no visible sellers, indicating strong investor interest.
