International Gemmological Institute (India) Ltd Q4 FY26 Earnings Call: Guides 15% Revenue Growth, Lab-Grown Diamond Revenue Surges 35%

International Gemmological Institute (India) Ltd held its Q4 FY26 earnings call on May 20, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Across Revenue, Profit and Volumes

• Q4 FY2025-2026 consolidated revenue of Rs.3,686M— up 21% YoY, driven by 16% volume growth to 3.64M reports. Certification income was Rs.3,587M (+21%).
• EBITDA of Rs.2,360M (margin 64%)— grew 21% YoY; PAT of Rs.1,796M (margin 48.7%) grew 28% YoY, reflecting operating leverage.
• India standalone Q4 revenue of Rs.3,124M— up 28% YoY; EBITDA margin of 74.2% and PAT margin of 58.8%.Margin contraction vs prior periods due to higher commission payout and a one-time Rs.25M consulting expense.
• 15-month FY2025-2026 (ended March 2026) total revenue of Rs.15,976M— up 18% YoY; EBITDA at Rs.9,728M (margin 60.9%, +230bps YoY); PAT at Rs.7,112M (margin 44.5%, +270bps YoY).
• FY2022–FY2025 revenue CAGR of 36%— EBITDA CAGR of 29% and PAT CAGR of 30%, underscoring the structural growth trajectory over the medium term.

Lab-Grown Diamonds Lead; Natural Diamond Jewelry Softens

• Lab-grown diamond (LGD) certification revenue grew 35% YoY in Q4 FY2025-2026— and 25% for the 15-month period; LGD jewelry certification grew 29% YoY in Q4 and 23% for the 15-month period.
• Natural diamond (ND) loose certification revenue grew 10% YoY in Q4 FY2025-2026— and 18% for the 15-month period; however, ND jewelry declined 19% YoY, attributed to higher gold/silver prices and market volatility.
• Management expects ND jewelry normalization over the next 1–2 quarters— (Q1/Q2 FY2026-2027) as elevated gold prices and volatility subside.
• Subsidiary business delivered 14% revenue growth and >25% EBITDA growth in Q4 FY2025-2026— with EBITDA margins improving ~300bps; pricing per segment remained stable, with mix changes driving revenue growth.
• The industry expects LGD manufacturing capacity to double from current levels over the next three years— (to ~FY2028-2029), driven by continued demand and anticipated Indian consumer adoption.
• LGD mix typically ramps up in Q4 (Jan–Mar) of each fiscal— and tapers during festive periods (Oct–Dec) due to Christmas and Diwali seasonality.

Second-Largest Global Player with Significant Uncertified Opportunity

• IGI is the second largest global player in natural diamond certification— with India market share of ~50%+ and global share of 20-25%; the dominant player remains US-based.
• Approximately 30-35% of natural loose diamonds remain uncertified— driven by small sizes with limited commercial value; larger, high-value diamonds are generally certified.
• In lab-grown diamond studded jewelry, 60-70% is uncertified— primarily smaller stones where certification at the loose stone level lacks commercial viability.
• Belgium and Netherlands subsidiaries were profitable for FY2025-2026— contributing to full-year net margins of ~8%; India margins are significantly higher.Management did not provide specific EBITDA margin guidance for these overseas entities over the next 2–3 years.
• Management cited estimates of "over 50% lab-grown diamond adoption in the US engagement market"— with "over 40% of that market still untapped," a factor driving Indian LGD manufacturing capacity ramp-up.
• Management reported 10% natural diamond volume growth in Q1 FY2026-2027— continuing share gains from Q3 FY2025-2026 in a tough US market.

15% Revenue Growth and 20% EBITDA Growth Targeted for FY2026-2027

• Management guided ~15% revenue growth and ~20% EBITDA growth for FY2026-2027— driven by operating leverage as incremental revenues flow to the bottom line; margins expected to be maintained at FY2025-2026 levels despite investments in AI/ML and branding.
• Volume growth target of ~20% for FY2026-2027— with revenue growth of ~15-16% and EBITDA growth of ~20%, supported by all four large segments plus gemstones following the EGL acquisition.
• Key growth drivers for FY2026-2027— increased LGD capacity buildup (concentrated in Surat, India) and deeper penetration in natural diamonds through a dedicated customer acquisition vertical.
• The company over-delivered against guidance in FY2025-2026— management expressed flexibility around the exact percentage (15% or 17% revenue growth) for FY2026-2027.
• Management reiterated a volume growth target of 16%–18% for FY2026-2027— despite industry-wide India export value decline in gems & jewellery, attributed to mix shift toward lab-grown stones (higher carat volumes but lower rupee value).
• Long-term contracts exist with manufacturers, not retailers— these are ongoing volume-based agreements that can be scaled, supporting visibility into certification volumes.

AGL Acquisition, US Expansion and AI/ML Integration Underway

• AGL (American Gemological Laboratory) acquired in January 2026— contributed ~2% to Q4 FY2025-2026 revenue growth and ~3% to EBITDA growth; consolidated within IGI US with plans to expand AGL to other markets.
• CFO Ishwar Aiyar clarified that a $25M expense pertains to the entire AGL acquisition process— (period unspecified).
• Employee benefit expenses rose 16% QoQ to Rs.73cr in Q4 FY2025-2026— driven by hiring in India and other geographies; Q1 FY2026-2027 stood at ~Rs.74cr.
• US sales organization being fortified with a new recruit onboarded 3–4 months ago— management is building sales capability over the long term to capture more of the large US market; US and Europe operations provide strategic retail market access.
• Management cited ongoing investments in brand building— including ICC Women’s World Cup, IPL, and the “Heera ki asli pehchan” campaign, plus integration of AI/ML to improve operational efficiency.
• Management affirmed commitment to the traditional four Cs— for both lab-grown and natural diamond certifications, stating “no deviation is planned despite any market pressure.”