Goldiam International , a leading player in the lab-grown diamond jewelry industry, has demonstrated remarkable resilience and growth in the face of significant market challenges. The company reported a 43% year-on-year revenue growth in Q2 and a 41% growth in H1, despite grappling with steep US tariff increases on lab-grown diamond jewelry exports.

Navigating Tariff Challenges

The United States, Goldiam's primary market, raised tariffs on lab-grown diamond and natural diamond jewelry from 16% to 56% during Q2. In response, Goldiam swiftly implemented a US origin casting model, a globally accepted and compliant approach that effectively mitigated tariff exposure. This strategy involved casting raw gold into unfinished jewelry pieces within the United States through its US subsidiary, providing domestic employment opportunities. These castings were then shipped to India for alterations, including polishing and diamond setting.

Financial Performance

Despite the disruption caused by the tariff increase, which impacted B2B operations for about 30 days during Q2, Goldiam's consolidated revenues increased by 43% year-on-year. The company's half-year revenue grew by 41%. EBITDA for both Q2 and H1 grew by 37%, with the EBITDA margin for H1 remaining stable at 21.60%. Consolidated PAT for Q2 and H1 grew by 42% and 47%, respectively.

Product Mix and Order Book

Lab-grown diamond jewelry exports contributed 90% to Goldiam's B2B sales in Q2, while online revenues accounted for 20% of the total revenue. As of September 30, the company's order book position stood at approximately INR 200.00 crores, indicating strong demand despite operational challenges.

ORIGEM Expansion

Goldiam successfully raised INR 202.00 crores through a Qualified Institutional Placement (QIP) to accelerate the expansion of ORIGEM, its India-focused B2C lab-grown diamond jewelry retail brand. ORIGEM currently operates 11 stores across Mumbai, Noida, and Bengaluru. During Q2, ORIGEM recorded a total revenue of INR 2.80 crores, with an average store fleet of only 6 stores.

Future Outlook

The company plans to strengthen ORIGEM's position in North and South India, with 15 to 18 additional stores at various stages of fit-outs, negotiations, and legal formalities. Goldiam aims to have 20 to 25 operational ORIGEM stores by March 31.

Market Trends and Opportunities

Goldiam's management noted that lab-grown diamond prices have stabilized, with smaller diamonds (0.12 carats and below) seeing price increases of 5% to 11%. The company is also exploring opportunities in fashion jewelry, which currently accounts for about 15% of its sales, with the potential for growth.

Conclusion

Goldiam International's strong performance in the face of significant market challenges demonstrates its adaptability and strategic acumen. The company's focus on expanding its retail presence through ORIGEM, coupled with its successful navigation of tariff challenges in its B2B business, positions it well for continued growth in the evolving lab-grown diamond jewelry market.

Investors should note that while the company has shown impressive growth, the lab-grown diamond industry is dynamic, and future performance may be influenced by factors such as market demand, regulatory changes, and competitive pressures.

Goldiam International , a leading exporter of diamond jewelry, has reported robust financial results for Q2 and H1, successfully navigating through recent tariff challenges in its primary US market.

Key Financial Highlights

Strategic Response to US Tariffs

Effective August 27, 2025, the United States significantly increased tariffs on several Indian export categories, including lab-grown and natural diamond jewelry, from approximately 16% to 56%. In response, Goldiam swiftly implemented a U.S.-origin casting model to mitigate tariff exposure.

This strategic move involved:

• Casting raw gold into unfinished jewelry pieces within the United States
• Creating domestic US employment opportunities
• Shipping castings to India for further processing, including polishing and diamond setting
• Establishing US Product of Origin to minimize net tariff impact

Operational Highlights

• Lab Grown Diamond (LGD) jewelry exports contributed 89.90% to the overall export sales mix in Q2, up from 77% in Q2 of the previous year
• Online revenue accounted for 19.90% of Q2 revenue
• 72% of inventory (finished jewelry) as of September 30, 2025, is with customers as finished stock
• Order book position stood at approximately ₹2,000.00 million as of September 30, 2025
• Cash and Cash Equivalents (including investments) were ₹4,639.30 million as of September 30, 2025

ORIGEM Expansion

Goldiam's B2C lab-grown diamond jewelry brand, ORIGEM, has shown significant progress:

• Now operates 11 stores across Mumbai (8), Noida (2), and Bengaluru (1)
• Present in marquee locations such as Phoenix Palladium and R City Mall in Mumbai
• Recorded a total revenue of ₹28.00 million in Q2
• Plans to have 20-25 operational stores by March 31, 2026

Management Commentary

Mr. Rashesh Bhansali, Executive Chairman of Goldiam International, stated, "We are extremely happy with what we have achieved in Q2. It was one of the toughest quarters as the USA, our primary market, introduced hefty tariffs across goods, including jewelry. We came up with a globally accepted solution with a US Customs Ruling, to propel business continuation."

Mr. Anmol Bhansali, Managing Director, added, "With 11 operational stores, ORIGEM has established itself as a multi-city lab grown jewelry brand, present at marque locations representing a unique blend of malls and high streets, catering to micro markets with high propensity for discretionary spending."

Looking Ahead

Despite operational challenges with the US Casting Model, Goldiam is gearing up for a busy holiday season in Q3. The company's strategic initiatives, coupled with its strong order book and expanding retail presence through ORIGEM, position it well for continued growth in the coming quarters.

Goldiam International's ability to adapt quickly to market challenges while maintaining strong growth demonstrates its resilience and strategic acumen in the competitive diamond jewelry market.