Summary
International Gemmological Institute (India) Limited - Q4 FY2025 (Calendar Year) Earnings Call Summary Tuesday, January 27, 2026, 5:00 PM IST
Event Participants
Executives 2 Eashwar Iyer (CFO), Tehmasp Printer (MD & CEO)
Analysts 8 Aaditya Agrawal, Angad Katdare, Arihant, Harit Kapoor, Naitik, Pradyumna Choudhary, Rahul Jha, Smith Gala, Sucrit D Patil, Sunil Jain, Varun Singh
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Reports Issued (Volume) | 12.81 million | +21% YoY (Full Year); Q4 volumes at 3.21 million reports (+11% YoY) reflecting post-festive shift in mix. |
| Revenue from Operations | ₹1,229 crores | +17% YoY (Full Year); Q4 revenue at ₹320 crores (+21% YoY) driven by strong realization in loose stones. |
| Certification Income | ₹1,188 crores | +18% YoY (Full Year); Q4 income at ₹305 crores (+23% YoY) led by 45% growth in Natural Diamonds and 35% in LGD. |
| EBITDA | ₹737 crores | +23% YoY (Full Year); Q4 EBITDA at ₹191 crores (+26% YoY) due to significant operating leverage. |
| EBITDA Margin | 59.9% | +300 bps YoY for FY25; reflecting stable costs and higher-margin loose stone certification mix. |
| Profit After Tax (PAT) | ₹532 crores | +24% YoY (Full Year); Q4 PAT at ₹135 crores (+18% YoY) with margins at 42.1%. |
| Average Selling Price (ASP) | ₹900 - ₹950 | +11% YoY (Q4); improvement driven by higher mix of loose stones (ND/LGD) vs. jewellery reports. |
| Cash & Bank Balances | ₹860 crores | Total group cash as of December 31, 2025; earmarked for dividends and potential M&A. |
Geographic & Segment Commentary
- India: The domestic market remains a primary driver, with Q4 certification revenues growing 33% and Natural Diamond (ND) loose stones growing 53%. Management noted that the retail footprint for Lab-Grown Diamonds (LGD) in India has surpassed 1,000 showrooms, indicating a shift from a nascent to an accelerating growth phase.
- Lab-Grown Diamonds (LGD): Segment revenue grew 22% for the full year, with Q4 loose stones up 35%. Growth is supported by large manufacturers doubling caratage capacity and a stable wholesale pricing environment over the last 18 months.
- Natural Diamonds (ND): Exceptional Q4 growth of 45% (Consolidated) and 53% (India) driven by market share gains and increased consumer demand for origin verification to differentiate natural stones from LGDs.
- United States: Following the induction of new leadership, the US remains a critical strategic priority for 2026. Management is currently rationalizing cost structures in the region to redeploy resources toward building a stronger sales organization.
Company-Specific & Strategic Commentary
- Brand Building & Consumer Outreach: IGI co-sponsored the Women’s World Cup to increase direct consumer awareness, shifting from a B2B-only focus to a “modern luxury” brand positioning over the next 12-18 months.
- Operational Capacity: The company recruited 200 people at the start of 2025 and is initiating another large round of hiring to manage volume growth and maintain competitive Turnaround Times (TAT).
- M&A and Capital Allocation: With ₹860 crores in cash, management is actively evaluating M&A opportunities while maintaining a policy of shareholder payouts through dividends.
- Reporting Cycle Transition: IGIL is transitioning from a January-December cycle to an April-March financial year; the next reporting period will be a 15-month period ending March 2026.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Volume & Revenue | Repeat FY25 Performance | Management expects to maintain current growth momentum in FY26, citing strong tailwinds from LGD capacity additions and retail expansion. |
| LGD Caratage | Double in 3 Years | Industry-wide expectation based on significant capacity additions by large manufacturers. |
| Operating Margins | Sustainable at ~60% | Driven by asset-light model and operating leverage as volume scales; no structural pricing changes anticipated. |
Risks & Constraints
| Risk | Context |
|---|---|
| Retailer Disintermediation | A large Indian organized retailer recently launched an in-house LGD brand with self-certification. Management is in talks to emphasize the importance of independent third-party trust. |
| ASP Fluctuations | ASP is sensitive to the mix between higher-value loose stones and lower-value jewellery reports. A shift back toward jewellery (volume-heavy) could dilute the average realization per report. |
| US Market Tariffs | While currently manageable via domestic growth and market maneuverability, any escalation in US trade barriers remains a watchpoint for export-oriented certification. |
Q&A Highlights
Certification Pricing & Realization
- Question: Why did volume growth (11%) lag revenue growth (21%) in Q4? (Sunil Jain)
- Answer: Jewelry reports have lower realizations but high volume. Q4 saw a shift toward Natural Diamond and LGD loose stones, which carry significantly higher ASPs, resulting in revenue outperforming volume (Eashwar Iyer).
Competitive Positioning
- Question: How does IGI view the threat of a large retailer using self-certification for LGD? (Angad Katdare)
- Answer: Self-certification lacks independent trust. IGI is in conversations with the retailer and believes that for a “rock” to be sold as a “diamond,” third-party 4C grading remains the industry standard (Tehmasp Printer).
LGD Market Stability
- Question: Has lab-grown diamond pricing stabilized after the recent crash? (Rahul Jha)
- Answer: Wholesale LGD prices have been extremely stable since mid-2024. Current margins for growers (8-10%) leave little room for further price drops, providing a stable environment for certification fees (Eashwar Iyer).
US Strategy
- Question: Why has the US performance seen opex rationalization? (Harit Kapoor)
- Answer: The company is cutting “wasteful” expenses in the US to redeploy capital into a newly formed sales leadership team to drive market share in 2026 (Eashwar Iyer).
Key Takeaway
International Gemmological Institute (India) Limited delivered a robust calendar year 2025, with revenues reaching ₹1,229 crores (+17% YoY) and EBITDA margins expanding to 59.9%. The quarter was highlighted by a 45% surge in Natural Diamond certification, driven by consumer demand for origin verification amidst the LGD boom. Strategically, IGI is transitioning toward a direct-to-consumer brand approach and scaling its workforce to support an industry-wide doubling of LGD caratage expected over the next three years. With ₹860 crores in cash, the company is well-positioned for M&A and dividend payouts. While self-certification by large retailers poses a potential headwind, management maintains that independent 4C grading is indispensable for consumer trust. IGI enters the new financial year aiming to repeat its 21% volume growth performance supported by stable LGD pricing and enhanced penetration in the US market.
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