IGI Q2 profit rises 43 per cent as lab-grown diamond demand lifts volumes and margins

International Gemological Institute Ltd reported a 43 per cent year-on-year increase in consolidated profit after Tax to Rs 185.8 crore for the quarter ended September 30, 2026, as growth in lab-grown diamond certification, jewellery and coloured gemstones lifted revenue and operating margins.

Revenue from operations rose 31 per cent to Rs 398 crore in Q2 FY27 from Rs 303.7 crore a year earlier. EBITDA increased 39 per cent to Rs 244.5 crore, while the EBITDA margin improved by 340 basis points to 61.4 per cent. Profit before tax rose 40 per cent to Rs 245.6 crore.

The earnings growth was stronger than the increase in report volumes, which rose 26 per cent to 4.35 million during the quarter. Total expenditure increased 20 per cent year-on-year to Rs 153.5 crore, slower than revenue growth, helping the certification company widen its operating margin.

Sequentially, revenue grew 7.4 per cent from Rs 370.8 crore in the June quarter, while PAT rose 12.1 per cent from Rs 165.7 crore. The PAT margin reached 46.7 per cent, compared with 42.7 per cent in the year-earlier quarter.

Lab-grown diamonds remained the main growth driver. Revenue from lab-grown diamond loose stones increased 37 per cent year-on-year, while lab-grown diamond jewellery revenue rose 47 per cent. Natural diamond loose-stone revenue grew 8 per cent and natural diamond jewellery revenue increased 3 per cent.

Coloured gemstone revenue increased seven times year-on-year, including the contribution from American Gemological Laboratories, or AGL. IGI acquired AGL in February 2026 to add gemstone expertise and strengthen its presence in the United States. The contribution indicates that the acquisition is beginning to diversify IGI's business beyond its historically diamond-focused certification operations.

For the first half of FY27, consolidated revenue rose 27 per cent to Rs 768.8 crore, while PAT increased 37 per cent to Rs 351.6 crore. EBITDA grew 34 per cent to Rs 468.3 crore and the margin improved to 60.9 per cent from 57.8 per cent. Half-year report volumes increased 22 per cent to 7.91 million.

Managing Director and CEO Tehmasp Printer said the company was seeing encouraging demand across categories as India entered the festive season and the US holiday ordering cycle gathered pace. 'IGI is category-neutral by design, certifying natural diamonds, lab-grown diamonds, jewelry and colored gemstones,' he said, adding that lab-grown diamonds were witnessing higher adoption while natural diamonds and gemstones remained important growth opportunities.

The result supports management's earlier view that the company can benefit from expanding lab-grown diamond production and adoption, particularly in the US and India. Certification demand is tied to the need for independent verification, especially in lab-grown stones where pricing, quality and authenticity assesSMEnt are important for retailers and consumers.

However, execution will remain important as volumes scale. IGI has identified turnaround times, skilled gemologist capacity, technology adoption and customer concentration among large lab-grown diamond growers as areas requiring continued attention. Management has said it is investing in automation, artificial intelligence-enabled processes and laboratory capacity to manage rising report volumes.

As of 9:41 am on October 22, 2026, IGI shares were trading at Rs 352.35, up 9.99 per cent from the previous close of Rs 320.35. The stock was about 7.6 per cent below its 52-week high of Rs 381.30, while remaining around 19.1 per cent above its 52-week low of Rs 295.95.

Disclaimer: The article is for informational purposes only and not investment advice.