International Gemmological Institute (India) Limited (IGI), a leading provider of gemstone and jewelry certification services, has reported robust financial results for the second quarter, while also announcing plans for strategic expansion to address increasing market demand.

Strong Financial Performance

IGI India delivered impressive financial results for Q2, demonstrating significant growth across key metrics:

• Revenue from operations increased by 16% year-over-year to ₹3,009.00 crore
• EBITDA grew by 37% to ₹1,735.00 crore, with margins improving from 48.70% to 57.70%
• Net profit surged by 63% to ₹1,265.00 crore, with margins expanding from 29.90% to 42.00%

The company's performance was driven by strong growth in both natural and lab-grown diamond certification segments. The lab-grown diamond (LGD) loose stone segment saw a 24% year-over-year increase, while the natural diamond (ND) loose stone segment grew by 14%.

Certification Volume Growth

IGI India reported a 21% year-over-year increase in total certification volumes for Q2, reaching 3.03 million reports compared to 2.50 million in the same quarter last year. This growth underscores the rising demand for gemstone and jewelry certification services in the market.

Expansion Plans to Meet Growing Demand

Tehmasp Printer, Managing Director and CEO of IGI, highlighted the company's plans to address the increasing demand for both lab-grown and natural diamond certification services. The growth strategy focuses on three key areas:

1. Scalable expansion through global retail partnerships
2. Implementation of digital laboratories
3. Geographic expansion beyond India's borders

Enhanced Certification Offerings

IGI is going beyond traditional certification methods to meet evolving consumer needs. Printer emphasized, "Modern consumers are increasingly discerning—they demand transparency, authenticity, and traceability." To address these demands, IGI has introduced a proprietary 'Light Performance Analysis' that provides a deeper insight into a diamond's visual attributes, including brightness, fire, and contrast.

Market Outlook

The company anticipates continued growth in its core segments of natural diamond and lab-grown diamond certification. Additionally, IGI is seeing strong demand for certification of natural diamond and lab-grown diamond jewelry, which is expected to further accelerate business growth in the coming quarters.

Conclusion

With its strong financial performance, growing certification volumes, and strategic expansion plans, IGI India is well-positioned to capitalize on the increasing demand for gemstone and jewelry certification services. The company's focus on innovation and meeting evolving consumer needs should help maintain its market leadership in the gemological certification industry.

International Gemmological Institute (IGI) India, a leading provider of gemstone and jewelry certification services, has reported robust financial results for the second quarter, demonstrating significant growth across key metrics.

Financial Highlights

IGI India's consolidated net profit for Q2 surged by 63% year-over-year, reaching INR 1.27 billion compared to INR 778.00 million in the same period last year. This impressive growth was driven by strong performance across all business segments, including natural diamonds, lab-grown diamonds, jewelry, and gemstones.

The company's revenue from operations increased by 16% to INR 3.01 billion, up from INR 2.60 billion in the previous year's Q2. This growth was primarily attributed to a 21% increase in certification volumes, which rose to 3.03 million reports during the quarter.

Improved Profitability

IGI India's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed remarkable growth, increasing by 37% year-over-year to INR 1.74 billion. The EBITDA margin expanded significantly, reaching 57.66% compared to 48.77% in the previous year's quarter.

Segment Performance

The lab-grown diamond (LGD) segment emerged as a key driver of growth, with the LGD loose stone segment reporting a 24% year-over-year increase in revenue. The natural diamond (ND) loose stone segment also performed well, registering a 14% growth compared to the same period last year.

Operational Highlights

Total certification volumes for Q2 stood at 3.03 million reports, marking a 21% year-over-year growth. Despite the increased volume, the average realized price (ARP) saw a slight decline of 3% to INR 963.00 per report, primarily due to changes in the product mix within segments.

Management Commentary

Tehmasp Printer, Managing Director and CEO of IGI, commented on the results: "I am happy to report the Company has seen strong growth momentum across all its segments compared to the previous quarter. At IGI, we have gone beyond the traditional 4Cs and have introduced a proprietary 'Light Performance Analysis' which is a scientific assessment that measures how a diamond interacts with light. This provides deeper insight into critical visual attributes—brightness, fire, and contrast—which collectively define a diamond's true 'sparkle'."

Future Outlook

Mr. Printer also highlighted the growing demand for certification of natural diamond and lab-grown diamond jewelry, which he expects will further accelerate the company's business growth in the coming quarters.

About IGI

International Gemmological Institute, backed by Blackstone, is India's largest independent accreditation and certification services provider with a 50% market share. With 31 laboratories and 18 Schools of Gemology in 10 countries, IGI's global presence enables it to capitalize on the ongoing transformation in the gemstone and jewelry industry.

IGI's strong Q2 performance underscores its leading position in the gemstone certification market and its ability to adapt to changing industry dynamics, particularly with the rise of lab-grown diamonds.