International Gemological Institute reported a 31% year-on-year increase in consolidated net profit after tax (PAT) to ₹1,657 million for the quarter ended June 30, 2026, driven by robust volume growth in its Lab-Grown Diamond (LGD) segment and the consolidation of American Gemological Laboratories (AGL). The gemological certification authority also posted a 23% rise in consolidated revenue from operations to ₹3,708 million, supported by a 17% surge in certification volumes to 3.56 million reports. This performance underscores the company’s expanding global footprint and the strategic value of its recent acquisitions in diversifying beyond traditional diamond certification.

The Board of Directors, chaired by Managing Director and CEO Tehmasp Printer, approved the unaudited financial results at its meeting held on July 23, 2026. The company announced that its 28th Annual General Meeting (AGM) will be conducted via video conference on August 14, 2026, with remote e-voting available from August 11 to August 13, 2026. Shareholders eligible to vote are those registered as of the cut-off date, August 7, 2026.

Financial Performance

Consolidated EBITDA grew by 29% to ₹2,238 million, reflecting an improvement of 270 basis points in EBITDA margins to 60.4%. The average selling price (ASP) per report increased by 5% to ₹1,010, aided by a favorable mix shift towards higher-carat stones and the inclusion of AGL’s higher-realization business. Standalone net profit rose by 12% to ₹1,546 million, while standalone revenue grew by 22% to ₹2,862 million.

Standalone EBITDA margins stood at 68.8%, down from the prior year due to discretionary marketing spends, including an IPL sponsorship estimated at just under ₹5 crore, and commission payouts to international subsidiaries for lead generation. However, management indicated that these margins are expected to stabilize in the 70% range as discretionary spends moderate.

Segment Highlights and Strategic Initiatives

The LGD segment remained the primary growth engine, with LGD loose stones growing 25% and LGD jewellery surging 44% on a consolidated basis. The acquisition of AGL contributed an incremental 3% to revenue growth and over 200% growth in the gemstones and other certification category. Management highlighted that AGL provides critical expertise in coloured gemstones, allowing IGI to cross-sell into new geographies and expand its total addressable market beyond diamonds.

Natural Diamond (ND) loose stones grew by 6%, with management noting that the rise in LGD certifications is creating a new consumer base that increasingly upgrades to natural diamonds, thereby benefiting IGI’s ND business through brand familiarity. The company also commenced operations in Italy via its Belgium subsidiary and continues to strengthen its presence in the US and China markets.

What the Numbers Show

The divergence between standalone and consolidated margin trends highlights the structural shift in IGI’s business model. While standalone India margins compressed slightly due to front-loaded marketing costs and inter-company commissions, consolidated margins expanded significantly. This suggests that the "One IGI" model—leveraging India’s manufacturing strength alongside global retail outreach—is successfully driving operating leverage at the group level. The 5% ASP improvement, driven largely by carat weight increases rather than price hikes, indicates that volume growth is being captured in higher-value segments, supporting sustainable profitability despite competitive pressures in the LGD space.

International Gemological Institute reported a 31% year-on-year rise in consolidated net profit to ₹1,657 Mn for Q1FY27, driven by strong growth momentum across loose stones, jewelry, and colored gemstone certification. Consolidated revenue from operations increased 23% to ₹3,708 Mn from ₹3,009 Mn in the corresponding quarter of the previous year, while EBITDA grew 29% to ₹2,238 Mn. The EBITDA margin expanded to 60.35% from 57.63% in Q1FY26, and PAT margins stood at 45%, an increase of 260 basis points.

The Board of Directors approved the unaudited financial results at its meeting held on July 23, 2026. The statutory auditors, M S K A & Associates LLP, performed a limited review and expressed an unmodified conclusion on the standalone results. The company operates in a single operating segment involving the certification of diamonds, gemstones, and jewellery, along with related education.

Consolidated Financial Performance

The company's profit before tax on a consolidated basis rose to ₹2,228 Mn from ₹1,750 Mn in the year-ago period. The results include the financial performance of 16 direct and indirect subsidiaries, including entities in Turkey, the Netherlands, Israel, and the United States. The auditors noted that the interim financial information of ten subsidiaries, totalling ₹160.83 million in revenue, were not reviewed by their respective auditors but were certified by the management. These figures were considered not material to the group.

Total certification volumes for Q1 FY27 stood at 3.56 Mn reports, marking a 17% YoY growth compared to 3.03 Mn reports in Q1 FY26. Certification revenues grew by 23% YoY to ₹3,598 Mn during Q1 FY27, with AGL consolidation contributing 3% incremental revenue growth. Average realized price (ARP) per report increased by 5% YoY to ₹1,010 in Q1 FY27 from ₹963 in Q1 FY26.

Strategic Outlook

Commenting on the results, Tehmasp Printer, Managing Director and CEO of IGI, highlighted broad-based momentum across Lab Grown Diamond (LGD) loose stones, LGD jewelry, and coloured gemstones. He noted that investments in the US business are gaining traction, and operations have commenced in Italy. The company continues to invest in artificial intelligence and automation to enhance service quality and turnaround times. The financial year has been transitioned to a 12-month period ending March 31, following a 15-month transitional year ending March 31, 2026.