International Gemmological Institute (India) Limited (IGIL.NS) is India’s largest independent gem and jewelry certification company. It provides grading and certification services for natural and lab-grown diamonds, colored gemstones, and jewelry. IGI also operates 31 laboratories and 18 Schools of Gemology across 10 countries, offering educational programs alongside certification services. The company leverages multiple service formats — in-lab, in-factory, and mobile labs — and holds a dominant position in India’s certification market with an estimated 50% market share, including 85–90% of natural diamond loose stone certification and 55–65% of lab-grown loose diamonds.
Market Context
The company’s market capitalization is approximately ₹130–135 billion, reflecting strong earnings performance and recognition of its leadership in certification services.
Q3 FY2026 Financial Highlights
For the quarter ended December 31, 2025 (Q3 FY2026):
- Revenue: ₹3,197 million, up 21% year-on-year
- EBITDA: ₹1,913 million, up 26% year-on-year
- EBITDA Margin: 59.9%, up from 57.4%
- Certification Volumes: 3.21 million reports, up 11% year-on-year
- Average Realized Price (ARP) per Report: ₹951, up 11%
- Certification Revenue: ₹3,049 million, up 23% year-on-year
Margin expansion was supported by higher contributions from natural and lab-grown diamond segments and operational leverage.
Nine-Month FY2026 Performance
For the nine months ended December 31, 2025:
- Revenue: ₹12,291 million, up 17% year-on-year
- Profit After Tax (PAT): ₹5,316 million, up 24% year-on-year
- PAT Margin: 43.3%, up from 40.6%
Guidance
IGI expects continued growth in certification volumes across both natural and lab-grown diamonds for the remaining quarters of FY2026. Management indicated plans to maintain EBITDA and PAT margins, supported by operational efficiencies and stable average realized prices per report. The company will continue to expand service offerings and capacity in existing and new markets, targeting incremental market share gains.
Sector and Macro Pressures
- Certification demand is rising due to higher transparency and verification requirements in the global diamond industry.
- Natural diamond jewelry continues to show resilient demand, particularly in bridal segments.
- Lab-grown diamonds are gaining traction due to affordability and sustainability, with wholesale prices stabilizing over the past four quarters.
- The company remains exposed to broader economic conditions and potential technological developments in gemstone verification.
Competitive Analysis
- IGI maintains a dominant independent grading position in India, enabling it to capture incremental industry volumes at minimal incremental cost.
- Market share breakdown: 50% total certification market, 85–90% natural diamond loose stones, 55–65% lab-grown loose stones.
- The company competes against both certified and uncertified market players, benefiting from scale, brand recognition, and a duopoly-like position across natural and lab-grown diamond segments.
Market Commentary
No analyst upgrades, downgrades, or price-target changes were reported during the period. The results underscore operational resilience, strong margin profile, and continued growth in certification volumes.
Summary
IGIL delivered strong quarterly and nine-month growth in revenue, certification volumes, and margins. With guidance indicating continued growth and margin stability, the company’s leadership in both natural and lab-grown diamond certification, combined with operational efficiency and multiple service formats, positions it to benefit from ongoing structural growth in the gem and jewelry certification industry.