International Gemological Institute Limited (IGIL) reported a 43% rise in Q2 FY2027 profit to ₹185.8 crore, supported by a 31% increase in revenue. Growth was largely driven by rising demand for lab-grown diamond and colored gemstone certification. Following the announcement, the stock hit a 10% upper circuit.
International Gemological Institute Limited (IGIL) has reported strong financial results for the second quarter of the fiscal year 2027, showcasing a 43% year-on-year increase in profit after tax to ₹185.8 crore. In the same quarter last year, the company had recorded a profit of ₹129.8 crore. Revenue from operations also saw a significant boost, rising 31% to ₹398 crore compared to the previous year. This performance has been supported by operational efficiencies, which helped the company achieve an EBITDA margin of 61.4%, reflecting an expansion of 340 basis points.
The primary driver for this growth has been the increased volume in the lab-grown diamond and gemstone certification segments. Lab-grown diamonds, in both loose stone and jewelry formats, witnessed strong growth, with jewelry rising 47% and loose stones by 37% year-on-year. Additionally, the colored gemstones segment, which operates under the AGL brand, expanded significantly during the quarter. The management credited this performance to the wider adoption of lab-grown alternatives by consumers and ongoing investments in technology and global infrastructure.
For investors, it is important to understand that IGIL’s business model is centered on certification and grading services rather than mining or manufacturing. As such, the company’s revenue growth is directly linked to the volume of gemstones and jewelry that require certification. While the current trend shows a high adoption of lab-grown alternatives, the global lab-grown diamond industry is currently navigating a period of price volatility and increasing supply. Investors may monitor whether demand for these stones continues to support high grading volumes or if pricing pressures in the industry eventually impact retailer confidence.
On the stock market, IGIL shares hit a 10% upper circuit on Thursday, following the release of these results. As the company continues to focus on its infrastructure and technology, the consistency of these margins and the ability to maintain market share in the grading space against competitors will remain key areas to track. Future updates on demand trends in key international markets and the sustainability of the colored gemstone segment's growth will also be relevant for assessing the company’s performance in the coming quarters.