International Gemological Institute reported a strong Q2 FY27, with profit after tax rising 43% to Rs 185.8 crore. Revenue grew 31% to Rs 398 crore, driven by a 26% increase in certification volumes. The company continues to see significant momentum in the lab-grown diamond segment, which now accounts for over half of its certification revenue.
International Gemological Institute Reports 43% Profit Surge in Q2
Revenue for Q2 FY27 stood at Rs 398 crore, up 31% YoY. Profit after tax reached Rs 185.8 crore, a 43% increase compared to the same period last year.
Reader Takeaway: Strong lab-grown diamond demand drives volume and margins, though product mix remains a key profit lever.
What just happened
International Gemological Institute (IGI) delivered a robust performance for the quarter ended September 30, 2026. The firm saw certification volumes hit 4.35 million reports, marking a 26% growth rate. Revenue from operations climbed to Rs 398 crore, while EBITDA improved by 39% to Rs 244.5 crore. Operating margins expanded significantly to 61.4%, reflecting improved scale and operational leverage.
Why this matters
IGI’s ability to grow both volume and profitability underscores its dominant position in third-party diamond certification. The lab-grown diamond (LGD) segment has become the primary growth engine, now contributing 54% of total certification revenue. This shift towards LGD and LGD-jewelry certification is fueling higher-margin growth, as evidenced by the 400 basis point expansion in PAT margins to 46.7%.
Performance Breakdown
The company’s LGD segment grew 37% YoY, while LGD jewelry certification saw a 47% surge. Conversely, the natural diamond loose stone segment grew at a more modest 8%. The Average Realized Price (ARP) increased by 4% to Rs 891, supported by the integration of AGL operations and a shift toward higher-value certification products.
Risks to watch
Investors should closely track the Average Realized Price (ARP). Because the company's profitability is sensitive to the product mix between natural diamonds and LGDs, any unforeseen shift in jewelry market preferences could pressure margins.
Context metrics
For the six months ended September 30, 2026, the company generated net cash from operating activities of Rs 415.7 crore, up from Rs 289.2 crore in the previous year's corresponding period. Total equity stood at Rs 1,751 crore at the end of the quarter.