International Gemological Institute

“We are saying that we are revising our 15% and 20% upwards given the fact that H1 delivery has beaten our initial estimates for the full year.”

“In May, we have given a guidance of 15% revenue growth and a 20% EBITDA growth for the full year 2027.”

“We expect to keep outperforming for the full year as well, in line with what we have delivered in H1. So, we expect the business to obviously, therefore, beat the guidance that we have given for the year.”

“And given the fact that we had such a strong H1 performance, we are upping our guidance to say that we expect to keep outperforming for the full year in line with the performance for H1.”

“What matters now is the capacity ramp-up and the service through the festive peak, for which we are well prepared.”

“This was primarily driven by robust revenue growth across all our segments, namely LGD, which grew 37%; LGD jewelry growing 47%; gemstones and other certification growing 331%.”

“In the quarter, lab-grown loose certification grew 37%, signalling a robust supply ramp-up.”

“Our lab-grown jewelry certification grew 47% in this quarter as retailers stock up for the season.”

“In a market that did not grow, our natural loose certification grew 8%, where our share is the highest in the industry.”

“We don't anticipate any slowdown as far as lab-grown business is concerned for the coming quarters as well. This is a tailwind from the industry, given the capacity addition that's happened at the grower end.”

“Even so, demand through the quarter was healthy, and the trade has stocked up well for the season. The initial trends in October driven by the festive demand are also seeing good traction.”

“Diwali is on the 8th of November this year. Last year, it was on the 20th of October, and so, some of the festive stocking that happened in September last year is happening in October this year.”

“On supply, large Indian growers are adding reactors and are doubling their capacity in 3 years. Supply is at its base and not at its peak.”

“The certificate costs less than 2% to 3% of the retail price, and it is the very reason why consumers buy with confidence.”

“Coming to natural diamonds, the business has shown a 8% growth this quarter. Sequentially, we are seeing a 5% growth. And, you know, from an H1 standpoint, this business has grown 7%.”

“EBITDA for this quarter clocked in at INR 2,445 million, growing 39%, with margins at 61.4%, which is 340 basis points above the same time last year.”

“The ARP for the quarter reported at INR 891, registering a 4% improvement versus the previous year.”

“EBITDA margins stood at 69.5% versus 72.8% in the previous year. It is down 340 basis points.”

“Obviously, this has been driven by certain investments that we made from an employee leadership standpoint plus additional marketing plus commission expenses, which we have talked about in the previous quarter as well.”

“EBITDA delivery at INR 4,683 million is growing 34%, with margins at 60.9%, which is up 310 basis points over the corresponding period.”

“Operating cash flow for the half-year was INR 4,157 million, 89% of the EBITDA and 118% of the PAT delivery, helped by a working capital release of around INR 662 million as receivables have fallen from a peak of around INR 2,885 million to INR2,402 million.”

“so from a balance sheet perspective, as of the quarter close, the group reported a cash and bank balance of INR1,0749”

“If we were to exclude the AGL consolidation on a like-to-like basis, the subsidiary business for this quarter has grown 31%. The AGL acquisition enabled an incremental 3% revenue growth.”

“AGL revenues for H1 contributed to 3% of this growth, with the base business therefore growing 24%.”

“AGL has been part of the IGI Group since January. We are building colored stone capabilities in our other laboratories using AGL methods, and we have started offering the services to our jewelry clients.”

“So what we want, what we plan to do is to extend AGL services to the other parts of the globe.”

“The AGL acquisition has contributed 2% of the incremental growth to the EBITDA.”

“On capital, the Board declared a first interim dividend of INR 2.55 per share in August, which was paid in September.”

“So, growth takes the first priority, followed by M&A opportunities, and then dividend payouts.”

“Our priorities, as articulated during the Investor Day, remain unchanged. We invest in capacities, geographies, and technology, selective bolt-on acquisitions, and return surplus cash, which the Board reviews with each set of results.”

“Gold prices have been high and volatile. The buyers of the natural diamond jewelry are taking a little longer to decide. As such, the results of natural jewelry certification grew only 3% in this quarter.”

“No, Jinal, we haven't given any rights to anybody to print our certificates.”

“So there's multiple layers of check before a final stone passes our system and a certificate is issued.”

“We issued 4.35 million reports in the quarter. That is 26% more than the same quarter last year.”

“Revenue from operations grew 31% to INR 3,980 million.”

“For the first half of the year, revenue grew 27%, EBITDA grew 34%, and profit after tax grew 37%.”

“Consequently, PAT reported at INR 1,858 million, growing 43% to previous year. PAT margins stood at 46.7% for the quarter, which is up 400 basis points over the previous year.”

“If you were to discount the AGL consolidation, that base business delivered 29% revenue growth for the quarter.”