International Gemmological Institute India, the Blackstone-backed diamond certification leader, has reported strong operational performance in Q3 CY25, demonstrating the resilience of its business model amid evolving market dynamics. The company's role as India's largest independent player in diamond and gemstone certification continues to strengthen, with significant growth in report volumes and sustained profitability margins.

Strong Volume Growth Drives Q3 CY25 Performance

The company's operational metrics for Q3 CY25 showcase robust demand for certification services across multiple categories:

The 26% year-on-year increase in report volumes demonstrates the company's ability to capture growing demand for diamond certification services, particularly as market participants seek greater transparency and authentication.

Lab-Grown Diamonds Emerge as Primary Revenue Driver

The revenue composition for Q3 CY25 reveals a significant shift toward lab-grown diamond certification, reflecting broader industry trends:

Lab-grown diamonds have become the single largest revenue contributor at Rs. 153.8 crore, representing 52.3% of total certification revenue. This shift highlights the company's successful positioning to benefit from the rapid adoption of lab-grown diamonds across global markets.

Impressive Long-Term Growth Trajectory

The company's standalone performance over the CY21-CY24 period demonstrates exceptional scalability and margin expansion:

These metrics illustrate a business model with strong operating leverage, where increased volumes translate into improved profitability. The expansion of both EBITDA and PAT margins over this period reflects the company's ability to scale efficiently while maintaining service quality.

Market Position and Strategic Advantages

International Gemmological Institute India operates as India's largest independent diamond and gemstone certification company, commanding nearly half of the domestic accreditation market. The company's infrastructure spans 31 laboratories and 18 Schools of Gemology across 10 countries, providing comprehensive coverage for global certification needs.

The company's current market capitalisation stands at approximately Rs. 13,429 crore, with shares trading around Rs. 311. Blackstone maintains a controlling 76.55% stake, while other institutional investors include the Government of Singapore (1.32%) and Abu Dhabi Investment Authority (1.33%).

Business Model Resilience

The company's performance demonstrates the strength of its certification-based revenue model, which benefits from increasing diamond trade volumes rather than price appreciation. As lab-grown diamonds continue gaining market acceptance and require clear differentiation from natural stones, the demand for reliable certification services is expected to remain robust. The slight decline in average pricing per report to Rs. 854 from Rs. 898 indicates that growth is primarily volume-driven, supported by the company's ability to process higher throughput efficiently.

International Gemmological Institute (India) Limited (IGI), a leading independent grading and accreditation services provider, has announced robust financial results for the third quarter of calendar year 2025 (Q3 CY25). The company reported significant growth across key financial metrics, demonstrating resilience in a challenging macroeconomic environment.

Financial Highlights

IGI's consolidated performance for Q3 CY25 showed impressive year-on-year growth:

• Revenue from operations increased by 21% to INR 3,037.00 million
• EBITDA grew by 20% to INR 1,763.00 million
• Profit After Tax (PAT) rose by 18% to INR 1,298.00 million

For the nine months ended September 2025 (9M CY25), the company's performance was equally strong:

• Revenue from operations grew by 15% to INR 9,094.00 million
• EBITDA increased by 22% to INR 5,454.00 million, with margins improving from 56.8% to 60.0%
• PAT surged by 27% to INR 3,971.00 million, with margins expanding from 39.8% to 43.7%

Operational Performance

The company's operational metrics showed significant improvement:

• Total certification volumes for Q3 CY25 reached 3.45 million reports, marking a 26% year-on-year growth
• Certification revenues grew by 20% year-on-year to INR 2,941.00 million in Q3 CY25

Segment Performance

IGI witnessed growth across various segments:

• Natural Diamond (ND) loose stone segment: 29% year-on-year growth
• Lab-Grown Diamond (LGD) jewelry segment: 26% year-on-year growth

Management Commentary

Tehmasp Printer, Managing Director and CEO of IGI, expressed satisfaction with the company's performance, stating, "I am happy to report that the Company has delivered 26% growth in report volume this quarter, enabling a 21% growth in revenues. Despite many macro-economic challenges, the Company has continued to deliver strong revenue growths driven by the festive demand in this quarter, across all categories."

Mr. Printer added, "Our core segments of natural diamond certification and lab-grown diamond certification have registered over 25% volume growth in this quarter, with continued momentum seen in the Jewelry segment. We remain confident of delivering a strong Revenue and EBITDA growth for the year in line with the guidance given at the beginning of the year."

Industry Outlook

The global diamond and jewelry industry is undergoing a transformation, with evolving consumer preferences and technological advancements driving change. Key trends include:

• Rising disposable incomes in India and an expanding middle class
• Growing appeal of diamonds as a luxury investment
• Rapid adoption of Lab-Grown Diamonds (LGDs) due to affordability and sustainability factors
• Increasing demand for certified diamonds, gemstones, and jewelry beyond traditional markets

IGI's multiple service delivery formats, including IGI Labs, In-factory Labs, and Mobile Labs, position the company to capitalize on these industry trends and reinforce its status as a preferred certification partner for the jewelry industry.

Conclusion

IGI's strong Q3 CY25 performance, characterized by substantial growth in revenue, EBITDA, and PAT, reflects the company's resilience and strategic positioning in the diamond and jewelry certification market. With a positive industry outlook and continued focus on innovation, IGI appears well-positioned for sustained growth in the coming quarters.