Whalesbook
📉 The Financial Deep Dive
Goldiam International Limited has posted a compelling financial update for Q3 FY26, demonstrating robust growth across key metrics. Consolidated revenue climbed by a healthy 18% year-on-year (YoY) for the quarter. This momentum is further underscored by the nine-month period ended December 31, 2025 (9M FY26), which saw consolidated revenues surge by 30% YoY to ₹7,773.4 million.
Profitability metrics also showed significant improvement. EBITDA for Q3 FY26 rose by 28.2% YoY to ₹908 million, with an accompanying EBITDA margin of 26.7%. For the nine-month period, EBITDA grew by 32.7% YoY to ₹1,853 million, maintaining a solid margin of 23.8%. The bottom line witnessed a substantial uplift, with Profit After Tax (PAT) growing by 37% YoY to ₹684 million in Q3 FY26, and a remarkable 42% YoY increase to ₹1,333.6 million for 9M FY26.
The Board of Directors has declared its first interim dividend for the fiscal year, amounting to ₹2.75 per equity share, signaling confidence and a commitment to shareholder returns.
The Quality:
A key driver of this performance is the company's strategic pivot towards lab-grown diamonds (LGD) in its B2B export business. LGD jewelry exports now constitute 90.5% of the overall export sales mix in Q3 FY26, a significant increase from 80% in the prior year. Online revenue channels also performed strongly, contributing 31.6% of total revenue in the quarter. The company's order book stood robust at ₹1,800 million as of December 31, 2025.
Goldiam recently secured new export orders worth ₹800 million for studded LGD jewelry from clients in the USA and the Middle East, further bolstering its B2B pipeline. Management pointed to increasing wallet share with existing clients and onboarding new large-format retailers in the US as key growth levers. The recent US trade deal, which reduced jewelry tariffs from 50% to 18%, combined with Goldiam's 'Made in USA' strategy (casting in the US, finishing in India), results in zero tariff on their jewelry exports to the US, creating a significant competitive advantage.
On the B2C front, the India-focused retail brand, Origem, is undergoing an aggressive store expansion. With 13 stores currently operational, the company has signed Letters of Intent (LOIs) for 20 more and plans to open an additional 12-14 stores by March 2026, aiming for a total of 24-26 stores. A further 50 stores are planned for the first half of FY27. While Origem incurred a loss of ₹2.5 crore in Q3 FY26, management indicated that the overall store fleet is at breakeven, with future profitability a key target.
🚩 Risks & Outlook
Specific Risks: The primary near-term risk lies in the profitability ramp-up of the B2C Origem brand, which incurred a loss in the latest quarter. However, the company's assertion of fleet breakeven and future profitability targets aims to mitigate this concern. Execution risk associated with the ambitious store expansion plans in India also needs careful monitoring.
The Forward View: Management expressed strong confidence in continued growth across both B2B and B2C segments, anticipating a record financial year. The stability and potential increase in global LGD prices are viewed positively. Investors will be watching the successful integration of new US retailers, expansion into new geographies, and the performance trajectory of the Origem retail chain in the coming quarters. The competitive landscape, including Titan's entry into LGD, is seen as a category booster, with Goldiam aiming to differentiate through quality and service.