Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
International Gemmological Institute (India) Limited (NSE: IGIL) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
Sumeet Khaitan — Investor Relations
Tehmasp Printer — Chief Executicve Officer
Eashwar Iyer — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the 15 months 2026 earnings conference call of International Zoological Institute Limited hosted by MUFG in time. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attached phone. Please note that this conference has been recorded. I will now hand the conference over to Mr.
Sumit Ketan from MUFG in time. Thank you. And over to you sir.
Sumeet Khaitan — Investor Relations
Good evening everyone. I welcome you all to the earnings conference call to discuss 15 months 2026 results of International Gemological Institute Limited. To discuss the result we have from the management, Mr. Pemas, Printer, M.D. CEO, Mr. Ishwar Iyer, CFO and Ms. Natasha Kedia, Head of Investor Relations and Public Relations. They will take you through the results and the business performance after which we will proceed for Q and A session. Before we proceed with the call, I would like to mention that some of the statements made in the today’s call may be forward looking in nature and may involve risk and uncertainties.
For more details, kindly refer to investor presentation and other filings that can be found on the company’s website. With this, I now hand over the call to the management for their opening remarks. Over to you, sir.
Tehmasp Printer — Chief Executicve Officer
Thank you, Sameh. Good evening ladies and gentlemen. Thank you for joining us today for the 2026 earnings call. I trust everyone has had the opportunity to review our financial results and investor presentation, both of which are available on the stock exchanges as well as on our website. Industrial Landscape over the past year, IGI has delivered another period of strong growth and consistent results supported by favorable structural shifts across the diamond and the jewelry ecosystem. At the heart of industry is trust.
Whether natural or lab grown diamonds, a diamond derives its value from independent certification of the four C’s that’s cut, color, clarity and carat, while increasingly also addressing transparency, traceability and the origin assurance certification is what gives consumers, retailers, manufacturers confidence in the product they are buying and selling. As the industry scales up with the advent of lab grown diamonds, the need for certification today is more relevant than ever before. In fact, we believe the diamond industry today is witnessing a structural increase in certification intensity across across all categories.
Consumers are more informed. Retail networks are expanding rapidly and purchase decisions are increasingly driven by transparency and trust. This trend directly strengthens the long term opportunity for globally recognized independent certification players like IGI like us. Importantly, we are uniquely positioned within these evolving landscape as one of the few scale global players with a strong leadership across both natural and lab grown diamonds as well as jewelry and color stones. One of the most important developments shaping the industry continues to be the rapid expansion of labrun diamond ecosystem.
Over the past several quarters we have witnessed a significant manufacturing capacity additions, accelerated retail adoptions and increasing consumer acceptance. In India in particular remains at a relatively early stage of penetration which gives us confidence that the Runway on growth for this category remains substantial. While pricing volatility within the labrun diamonds has been widely discussed, we believe this is often misunderstood from a certification perspective. As supply expands and accessibility improves, the relevance of independent certification only increases.
Consumers still want assurance regarding the quality, authenticity and value irrespective of whether the diamond is natural or lab grown. In many ways, the scaling up of the lab grown ecosystem is expanding the addressable market for certification globally. We continue to see this reflected clearly in our operating performance. For January 2026 quarter lab grown diamond certification revenue grew by 35% year on year while lab grown jewelry certification grew by 29%. For the 15th month period, growth stood at 25% for LGD and 23% for LGD jewelry respectively.
We have also seen encouraging traction from the increased capacities and retail expansion initiatives that are expected to contribute meaningfully over the coming quarters. At the same time, the natural diamond segment continues to demonstrate strength despite near term volatility in gold prices and macroeconomic uncertainty across certain markets, consumer demand for natural diamonds, particularly in the bridal and the high value purchases remain intact. For the 15 month period, our natural diamond certification business grew 18% while quarterly growth remained a healthy 10% year on year.
Natural diamond jewelry has witnessed some softness in this quarter driven by high volatile pricing in gold and silver. Another important strategic milestone during this year was the acquisition of AGL, that’s American Gemological Laboratory in January 26th. This acquisition significantly strengthens our positioning within the global colored stone certification market, expanding the total addressable market and opens a new long term growth avenue. Beyond diamonds. AGL brings deep expertise, a strong reputation in gemstone certification and a strategic access to the US Market.
We see meaningful opportunities for cross selling, geographical expansion, portfolio diversification and deeper engagement across the jewelry value chain. On the back of this success in the US Geography, we plan to expand AGL to other markets for color stones to enhance brand presence and garner higher market share. IGI has initiated focused investments in brand building and consumer awareness during the year through a series of high impact consumer engagement initiatives and strategic media associations.
This included partnerships around marquee supporting properties including the ICC World, Women’s World Broadcast and partnering with Gujarat Titans in the largest league of the world ipl. Our campaign Hira Ki Asli Pei Chan was to build this connect as an independent third party certifying agency to bring greater transparency and trust to the consumer. We are also working towards integrating AI and ML into our operations to further enhance service qualities, improve customer turnaround times, increase operational efficiencies and reduce redundancies.
Against this breakdown, IGI delivered another strong set of financial results for Jan to March 2026 Quarter Consolidated Revenue from operations and EBITDA both have grown by 21% year on year while report volumes increased to 16% to 3.64 million reports. For the 15 month period ended March 2026, revenue grew 18%, EBITDA grew 22% and total report volume increased 20% reflecting broad based momentum across natural diamonds, labran diamonds, jewelry certification and color stones. Despite the changing landscape, the long term growth trajectory of the industry remains intact and our performance is evidence of that.
Between year 22 and 25, IGI delivered revenue EBITDA and PAT of 36%, 29% and 30% respectively while continuing to maintain strong profitability and cash generation generation. Looking ahead, we remain optimistic about the long term outlook of the industry and for IGI the global jewelry market continues to be robust. Lab grown diamonds are expanding the consumer base through rapid retail expansion across all sectors. Consumers increasingly want transparency, authenticity and confidence combined with trust in what they purchase.
All of these trends structurally reinforce the importance of independent certification. With our strong global footprint, diversified segment presence, trusted brand and expanding capabilities, we believe IGI is exceptionally well positioned to capitalize on these opportunities and continue delivering sustainable long term growth and value creation. With that, I would now like to invite our CFO Mr. Ishwar Iyer to take you through the financial performance for the quarter and the year gone by. Thank you,
Eashwar Iyer — Chief Financial Officer
Thank you Temaz and thanks everyone for taking the time. I would just start by giving a context in terms of the company having transitioned its financial reporting structure from a calendar year to a financial year. These have been announced to the stock exchanges as well sometime earlier. So accordingly the current reporting period comprises the 15 month ended March 31, 2026 while the previous reported period was for a 12 month period ended December 2025. As a result, the two periods are not directly comparable to aid compatibility.
We have also shared a corresponding 15 month financial performance in our investor presentation so that you are able to have a proper comparative of the 15 months performance over the last two years. I would like to start with an update for the quarter from a consolidated group standpoint in terms of consolidated revenue Certification income for the quarter stood at 3587 million which has grown at 21% supported by strong volume growth of 16%. This was primarily driven by strong revenue growth across all our core segments be it the lab grown diamonds which has grown 35%, natural dime hard jewelry which has grown 29%.
Total revenues for the quarter stood at 3686 million and registering a growth of 21%. Reported volumes stood at 3.64 million reports compared to 3.12 million reports for Jan to March 2025 period registering a growth of 16% during the quarter. The significant revenue growth in LGD stones was on account of new customer acquisitions and an increase in capacity as some of the primary growers. Correspondingly, LGD jewellery grew 29% while ND loose stones grew 10%. North Dakota jewellery saw a 19% decline due to a slowdown in the India ND jewelry business caused by steep increase in prices of gold and silver.
The resultant mix shift towards the higher ASP categories namely LGD and ND new stones has led to a 4% improvement in ASP. EBITDA reported at 2.36 million reflecting a growth of 21% compared to the previous year. EBITDA margin stood at 64% which is more or less the same levels as the previous year. Pat reported at 1.796 million growing 28%. Pat margins at 48.7% for the quarter. Coming to the AGL acquisition that TEMA spoke about, we acquired this company on 30th of January 2026. Subsequently there has been a lot of work in terms of integration etc that is currently going on.
The quarter therefore represents the first quarter of consolidation with AGL Financials. AGL is a subsidiary of the IGI US entity and hence its financial statements are not disclosed separately. AGL being in the business of certifying gemstones, the AGL revenue is subsumed in the gemstone revenue line in line with maintaining transparency. There is two months of revenue for this period which is now got consolidated and the corresponding expenses and EBITDA has also got consolidated in the absence of the corresponding numbers for the previous year.
This has contributed to an additional 2% growth in revenue and 3% growth in EBITDA for the quarter. Coming to the consolidated group performance from a 15 month standpoint. For the 15 months ended March 2026 we delivered 16.45 million reports compared to 13.7 million reports in the same period last year, marking a robust year on year growth of 20%. In terms of consolidated revenue, certification income stood at 15,465 million growing at 19%. This was driven obviously because we had significant and substantial improvements of growth in LGD at 25%, LGD to LED at 23%, Indie at 18% and Indie jewelry by around 2%.
Total revenue from operations for the 15 month was at 15,976 million growing at 18%. EBITDA reported at 9,728 million, a 22% growth, EBITDA margins at 60.9% representing a 230bps year on year improvement. The company delivered a path of 711. 2 million growing 25%. PAT margins at 44.5% is up 270 basis points on a year on year basis. I’m just going to touch upon the India standalone performance for the quarter. For that period the revenue from operations in India stood at 2.963 million growing at 27% supported by a strong volume growth of 18%.
This was primarily driven by strong revenue growth across our core segments. Lab grown diamonds have grown 46% for the quarter, LDD jewelry at 19% and ND at 9%. Total revenues for the quarter stood at 3.124 million, registering a growth of 28%. EBITDA reported at 2.198 million reflecting a growth of 21% compared to the previous year. EBITDA margins at 74.2%. There is a slight reduction in the EBITDA margin. It’s attributable to a higher commission payout to our subsidiaries in US and Dubai on account of new customer acquisition there for which services are rendered in India and We had a one time consulting and professional expense of around 25 million.
PAT reported at 17. 42 million, growing 25% compared to the previous period. PAT margins at 58.8% for the quarter. So overall the company has entered the 15 month with an exceptional performance, thus delivering ahead of the guidance provided at the beginning of last year. We remain confident to deliver the 15% revenue growth and 20% EBITDA growth for the financial year 2627. With that I conclude my remarks and open the floor for Any questions?
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the Touchstone telephone. If you wish to remove yourself from question queue, you may press star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, wait for a moment while the question queue assembles. The first question is from the line of Umang Mehta from Kotak Securities. Please go ahead.
Unidentified Participant
Hi. Thanks for the opportunity. My first question is on your outlook for 27 on both growth and margins. I hear you mentioned 15% revenue growth and 20% EBITDA growth. Possible to share any color in terms of segment wise, how are you thinking about the year and in terms of margins, any tailwinds from INR depreciation that you are kind of factoring in?
Eashwar Iyer
Hi Umang. Yes, thanks for this question. Yes, I think over the last two years the company has been intending to deliver around 15% of revenue growth and 20% of EBITDA growth. So that trend is what we expect to continue for this financial year as well. Again, the quarter one performance obviously has been driven exceptionally by the growth in GDN as well as natural diamonds as well as lab grown jewellery. We’ve had a little soft quarter on natural diamond jewellery. We expect the major chunk of the growth to come through increased capacity buildup that’s happening in NGD and our increased penetration in natural diamonds.
So I think those two strategic priorities which have been on record for the last two years continues to be our core focus areas and we expect to build on whatever strength we have at the current moment. From a margin standpoint, I think our focus has been in terms of ensuring that we make the right investments for the business while margins are important, but that is not the sole driver of the decisions that we take within the organization. There are significant interventions, et cetera, that we have working on.
Tamas mentioned about AI ML that work, that project is going on. There is a big focus on building the brand in terms of various brand initiatives, etc. So from that standpoint, I think these are critical investments for the long haul. We don’t expect any erosion of the margins. So we will maintain the. Our guidance for the year should be to maintain the margins at the same levels as what we have seen in the last year.
Unidentified Participant
Got it, thank you. And the second question was on your performance of subsidies. Possible to share any color on how both of them have done for the full period.
Eashwar Iyer
See, I think just to set this in context, we have businesses in which roll up to the holding company in Belgium, which has the Belgium and the US business under it, and we have other businesses rolling up under Netherlands. Importantly, we need to understand that the Belgium and the US office, they play a very critical role in engaging with the retail, considering that these are the largest markets from a consumer standpoint, with the strength and leverage that IGI has in India, working closely with the growers, and we work very closely with the growers and manufacturers here.
Our teams in the US and Europe are therefore expected to engage with the retailers so that they partner with IGI as their certifier of choice. I think from that context, the business has been doing pretty well. The subsidiary business delivered on a 14% revenue growth for this quarter and EBITDA growth of over 25%. EBITDA margins have also slightly improved over 300 basis points in the subsidiary business for this quarter. Obviously we are also making significant investments from a leadership recruitment standpoint in the US etc.
Which ties in with our strategy to build greater focus and scale up the business in the US that combined with the AGL acquisition, these are important steps that the organization is taking to ensure that the synergies of the brand that AGL gets, with the operating size that IGI has, they’re able to therefore scale up some of the other businesses in conjunction with the gemstone certification opportunity that AGL presents to us. So I think the quarter has been good, not only in India, but also the subsidiaries.
And we hope that this trend continues into the future as well.
Unidentified Participant
Sure. Ishwar, thank you so much and all the best. Thank you.
Operator
Thank you. The next question is from the line of Hareet Kapoor from investech. Please go ahead.
Sumeet Khaitan
Yeah. Hi, good evening. So just had two or three questions. First was on the, you know, strong realization growth you mentioned mix is the key driver here. Just wanted to get your sense that is pricing per segment, has that continued to be stable like it has been in the last two quarters? Is that a correct assumption?
Eashwar Iyer
Yeah. Yes. We haven’t had any structural changes to the pricing during this quarter. That continues to stay. Okay.
Sumeet Khaitan
Okay. And any broad outlook you have on that for, you know, the near to medium term, do you think that it should broadly remain. Pricing should broadly remain in the same range and then whatever happens to mix happens depending on the growth. Is that the right way to think about it?
Eashwar Iyer
That’s the right way to look at it. Arit. Mix finally is a little. It has come. Yeah. Just now come. But yeah. Our focus remains on ensuring that each of our business segments continue to perform well,
Sumeet Khaitan
Great, Fantastic. The second thing was on natural diamond jewelry bit so you’ve seen 2/4 of value growth coming down. If you look at this only as domestic jewelry market shifting more toward gold, that near term impact that’s there, which is affecting the segment overall, is that the right way to think about it and should that normalize? And within natural diamond jewelry, if you could just give a little bit of color on, you know, how your US initiative in terms of the leadership change that you alluded to, how that is fructifying any key account wins or anything which you can kind of, you know, give, give any color to.
Eashwar Iyer
Yeah. So I’ll take the second question first. I think we’ve got building up leadership in the U.S. We have had a new recruit. He’s been in this now in our organization for three, four months. We are also having to fortify the sales organization there. So there’s going to be a little bit of work that has to happen in terms of building an organization to meet the requirements of sustaining a growth business in the US So that is work in progress currently. And coming to your first question. Yes. And thanks to the increased prices of gold coupled with the volatility, I think that is what is causing a little bit of distress is what we understand from the market.
We’ll see how that pans out. Hopefully things settle down over the next quarter or two and hopefully this comes back to come back on track.
Sumeet Khaitan
Great. My final question was on the comment that you made that you know, there has been capacity additions in the Indian market from the grower perspective, could you give a little bit more color on this? You know, in terms of given that prices have not really kind of gone up at their wholesale level, you know what’s driving capacity addition? Is it just the kind of volume offtake that they are seeing in the global market, Indian market, that is driving some, some sense on this.
Eashwar Iyer
Yeah, we alluded to this last time as well, Harith. In terms of the expectation that the industry is having is probably to double from wherever they are today over the next three years. I think that has been one of the key considerations because there is still a lot of demand that’s still coming in and that’s the reason why people are adding a little bit more capacity. So I think again these are initial days for the lab grown is what we believe because the Indian consumer has also come into the fray.
Right. Hopefully in the near future we see some of those trends in the way lab grown jewelry business is moving. As far as IGI is concerned, I guess These are just starting points for the segment.
Sumeet Khaitan
Absolutely. And last is just bookkeeping on other expenses. You mentioned there was 25 million additional standalone to the subsidiary. Right. Which obviously gets netted off at a consolidated level.
Eashwar Iyer
Two elements there. There is a commission payout that happens, that gets eliminated.
Sumeet Khaitan
25
Eashwar Iyer
Is just an expense. There’s no elimination there. So that’s the reason you see a slight impact in the India EBITDA margin. But at the consolidated level the EBITDA margin has remained at the same levels.
Sumeet Khaitan
And the 25 million. If you could just repeat as to why. So what was it? What was it regarding? Sorry I missed that comment. We
Eashwar Iyer
Add certain expenses regarding the entire acquisition process for.
Sumeet Khaitan
Perfect. Perfect. Wish you all the best. Thank you.
Eashwar Iyer
Thank you. Thank you.
Operator
Thank you. My next question is from the line of Smith Gala from RSP Invention.
Sumeet Khaitan
Yeah, thank you for the opportunity and congratulations on the set of numbers. So my first question was in the last quarters uninstalled, we alluded that we are in increasing our capacity in terms of number of gemwaters. So in this quarter we have not seen the reflection there seen in employee expenses which is also after the acquisition of agl. So when does the employee expenses see an increase? Given that we are hiring, we are giving
Tehmasp Printer
A massive hiring project.
Eashwar Iyer
See. I think. Thanks for the question. I think if you would look at from a quarter standpoint, I think our employee benefit expenses are. I think. Yeah, thanks. So I think if you look at it from a quarter to quarter standpoint, the employee expense is up 16%. That’s obviously because there has been additions not only in India but also in other geographies and versus the previous quarter. I think the previous quarter already had soaked in some of those expenses. If I look at the numbers around 71 crores was the employee benefit in Q3 of 25.
It then became 73 crores in Q4.25 and this is Q1 26 is another 74 crores. So slowly that is getting built up for some of the investments that we have made on people and capability within the organization. Smith, you there?
Tehmasp Printer
She’s unmuted. Yeah,
Sumeet Khaitan
Yeah, yeah. Yes, yes, I’m there. Thank you, that was helpful. My second question will be we have given that 18, 16 to 17% volume growth. But while I try to analyze the India export numbers for gender jewellery, they have seen decline continuously. So how is our company able to deliver the growth where export data as a whole is not showing commerce?
Eashwar Iyer
I think this export data is in rupees or dollar million. I think you have to also look at it from a carrot standpoint because what has happened is there is an increasing mix shift towards lab grown stones which is getting exported. And while the carrots have probably doubled, I think from whatever I saw last time, obviously because of the way the pricing has evolved over the last two, two and a half years, I think there is a. The rupee component has probably remained the same. I think we have to look at it from a volume standpoint and not just value.
Sumeet Khaitan
Okay, that was helpful. Thank you. I’ll join back to Q.
Eashwar Iyer
Thanks.
Operator
Thank you. The next question is from the line of Pallavi from some extra capital. Please go. Go ahead.
Unidentified Participant
Yes sir. Thank you for taking the question. This was again continuing on this previous comments on the marketing side. Right. Just wanted to understand what’s the team size there now in the US and what size do we want to take it to?
Eashwar Iyer
Sorry Pallavi, we are not very clear. Can you just repeat the question?
Unidentified Participant
Yes sir. So my question was on regard to what you mentioned earlier about the marketing team in the US you know, and the ramp up. So you know, what’s the size now and if we can have a sense of where we want to and how long will that take?
Tehmasp Printer
See our US offices actually operate as a marketing office where they are in touch with the retailers in the US and they get exact requirements of what the retailer wants in the US market and that is translated to us and we certify accordingly. We are at the manufacturing end. So US is the marketing end for us and they give us all the information, all the relevant information what a US consumer and the US retailer wants. So from that perspective this information is translated to US and to the manufacturing units in India and we certify accordingly.
So that is how we are ramping up the US marketing effort.
Unidentified Participant
Right. I understand it’s the marketing. So I just wanted to know the number of people we have for that on the street there.
Eashwar Iyer
No, I think our staff strength in US is not very large. But I think the point that we are trying to make is we’re trying to build some capability in the sales organization to capture the market there because it’s such a large country. Right. So we have to slowly build that capability. I think that’s what we are alluding to in terms of that capability long term
Unidentified Participant
Which gained in third quarter. Does that continue for the US in particular?
Eashwar Iyer
Sorry, come again?
Unidentified Participant
The natural diamonds on that side, we had gained some market share in third quarter in the US Is what you had alluded to. Is that continuing and how is that continuing?
Eashwar Iyer
Yeah, in quarter one we’ve grown 10% on natural diamond in what has been a very tough market. So I think our efforts continue in the same direction in terms of trying to build greater credence into that segment. Yeah.
Unidentified Participant
Okay. And my last question would be on this export data that you mentioned about the value and lgd. So that would also in terms of volume, what would have been India’s growth in that, would that number be available for LVD volumes carrot wise?
Eashwar Iyer
See we have some information but again it’s not available in the public domain. Just guesstimates that we have. This is what we speak to a lot of people in the industry. But our understanding is, and it’s logical actually because given the fact that the volumes have continuously been pretty robust and given the fact that prices corrected in the last two years, I think that corroborates with what people in the industry also talk. So I think from that standpoint, I think the volume data is something that we need to look at.
Unidentified Participant
But the US is fairly mature on the natural diamond side. So I was just trying to understand what is, sorry, not natural on the LGD side. I believe it’s like for engagement more than 50%. To
Operator
Rejoin the queue for the follow up question please.
Unidentified Participant
Yeah,
Eashwar Iyer
I’ll just take that question. I think Pallavi, just to wrap this up, I think while the estimates are over 50% adoption for lab runs but what we understand is there’s still over 40% still left. Right. So I think that aspect is what is giving this sort of momentum as far as manufacturing capacity ramp up in India is happening.
Unidentified Participant
Right. So that’s happening for the US market you’re saying. But right now, but earlier you alluded to it. India, it is the same, you know, it’s the same thing.
Eashwar Iyer
No, I didn’t get that question, sorry. Earlier we said that
Unidentified Participant
Earlier we said this, you know, this growth in Indian capacities to serve the India market. But right now you are leading.
Eashwar Iyer
I, I understand, I just clarified. I. What we mentioned is the US has been the first adopter of Labrum and they are the largest player as far as consumption of Labrum diamonds is concerned. What we are alluding to is the fact that the Indian consumer will also come into this mix going forward and some of the lab grown jewelry growth that you are seeing is because of the retail explosion that is happening in India as far as selling of lab grown jewelry is concerned. So while the US has been the place where Lab grown has taken off the first, we expect that trend to be emerging in India as Well,
Unidentified Participant
Right, got it. Thank you so much.
Operator
Thank you. Thank you. The next question is from the line of Shan Vora from Morgan Stanley. Please go ahead.
Sumeet Khaitan
Hi, good evening to the management. Many congratulations on a good set of numbers. I actually wanted to. And I know you touched upon that when you were talking. When you’re guiding for the 15% top line growth for the coming year. The two important segments you spoke about was continuing growth in LGD and natural diamonds. Could you briefly just talk about the drivers a little bit on those two for us?
Eashwar Iyer
Good evening. I think obviously the key drivers for us from a natural diamond standpoint is getting more customers into our bouquet of who come and work with us. I think we have obviously created a separate vertical to focus on natural diamond. We have a business leader with tremendous experience in this field. So I think the focus of natural diamond continues to be in terms of getting more customers into our basket. Number one, lab grown. As we talked about, I think the capacity additions that has happened is what could be the.
And we haven’t seen the full impact of all of the capacity that’s getting added because these happen over a few months, etc. For the capacity to ramp up. So we expect that to also kick in as we get along the road during this course of this year.
Tehmasp Printer
Just to add to what Ishwar said, see, you have to understand that the manufacturing is all done in India whether it is natural or lab grown. And we are at the manufacturing end and our offices globally are at the retail end. So when we receive all the information, what the retailer or the consumer wants in that geography, we transfer that information to the manufacturers in India, whether it is lab grown as well as natural. And that is our unique advantage where we merge the two geographies together and settle all their requirements.
And that has given us the strength to vector up in our sangua.
Sumeet Khaitan
Nice. Got that. And just the second question for me, sir, is that ASPs in the last two quarters have actually done quite well. How should we look at ASPs for the coming year? And just attached to that, you mentioned that you would continue to make investments and ebitda growth of 20% is what you guided for. So if you could just highlight some of the investments other than the marketing investments that you’re making both in the US and India. So just those two, one is on ASP and the other what kind of investments you’re making.
Eashwar Iyer
I think Shawan, two important strategic pillars, one is the brand salience piece in terms of investments in building up that brand awareness, etc. Especially in line with getting the consumers to know the need and the importance for a third party independent certification. I think that is the context in which we want to build that sort of communication directly with the consumers. I think that is an important strategic pillar for us. Number two is building capability in the US in terms of a structured sales organization, etc.
Because there is significant potential in the US coupled with the fact that we have also acquired AGL. So I think all of those things. So our strategic. So these are the two large strategic pillars in which the organization is working. Coming to the ASP question, I think we have discussed this in the past. There is a lot of discussion that happens on asp. We believe that this is just a derivative so long as we are able to deliver a 20% volume growth with a 15, 16% revenue growth with a corresponding EBITDA growth.
I think that should be what we should be focusing on because there are quarters in which the jewelry mix will go up and correspondingly the AHP drops. So those things have been discussed over the last five, six quarters. I think we’ll see how that goes. Normally the first quarter of the year, which is effectively the end of the year because of the change in the financial year, but this quarter Jan to March, normally we see a ramp up of lab grown mix in the business which slowly tapers down as we get along the year because then we have the quarter three and the quarter four on Christmas and TV and et cetera, et cetera.
So I think we should just expect the same trend to continue. But again from a management standpoint, our focus is in terms of volume, revenue and EBITDA growth rather than too much of focus on asp.
Sumeet Khaitan
Got that sir, thanks a lot for that and all the best.
Eashwar Iyer
Thank you.
Operator
Thank you. Question is from the line of Oman Shah from Banyan Tree Advisors, pms. Please go ahead.
Sumeet Khaitan
Hi sir, good evening. Thank you for the opportunity. Sir, first question was in the previous quarter’s presentation we had given our market share and in that natural diamonds natural diamond lose our market share was almost 55 to 65%. Sir, our understanding was that we are the second largest player in national diamonds, not the largest ones in terms of certification. Can you please clarify this?
Eashwar Iyer
No, you’re right. Actually Umang, we are the second largest player as far as natural diamond is concerned. From a global standpoint, India, I think we command a decent position in India. I think we must be close to. Yeah, we must be close to leadership here in India. But again we measure ourselves in terms of the global share because obviously the largest player in this segment is still the US So I think our endeavor therefore is to find a means to improve that market share from a global standpoint.
Sumeet Khaitan
Would it be okay calling out CAR global markets in natural diamonds.
Eashwar Iyer
These are again estimates for us. So we think that our market share in India probably is in surplus of 50% globally. I think we were in the 2020.
Sumeet Khaitan
Sure. And one more data point from that presentation was that almost 30 to 35% diamonds, both natural and blue are uncertified. What could be the reasons for the same?
Tehmasp Printer
These are more for the smaller sizes and less relevant from the commercial value. All the high end diamonds and larger sizes are generally certified and that is where the game is.
Sumeet Khaitan
Got it, got it. And also you mentioned that almost 60 to 70% is uncertified. Do we see that as an addressable market for us or not really.
Eashwar Iyer
So where are you seeing this? Yeah, I don’t recollect this
Sumeet Khaitan
Quarter. Yeah, this was in the previous quarter’s presentation. Slide number 30 this year. Not this year. So this quarter’s presentation. This was in the last quarter’s presentation.
Eashwar Iyer
I think Rahul. Okay. I think this probably must be tier 2, tier 3 towns where probably certificates are not as
Tehmasp Printer
People are not health aware. Yeah. So. So we are taking action to also go into the second and the third tier cities.
Sumeet Khaitan
Sure, sure. That is useful.
Eashwar Iyer
I think that from a natural diamond jewelry certification I think our share in this segment would be on 60. 70%. Yes. You are basically saying 70% is going uncertified. Is it?
Sumeet Khaitan
Yes, yes.
Eashwar Iyer
On
Sumeet Khaitan
LG.
Eashwar Iyer
On LG. Is it
Sumeet Khaitan
On LG. LG studied jewelry
Tehmasp Printer
And it started. Okay.
Eashwar Iyer
Okay. Probably. I think these are all to Tamas point. I think these are the small size stones which finally end up in jewelry. And there’s no probably a commercial proposition to have this certified at the loose stone level.
Sumeet Khaitan
Okay. Okay. And one more question was that this year we see that the subsidiaries are profitable. Both the subsidiaries and full year margins are around 8% net margins. We have India margins which are exceptionally high. Two, three years down the line. Where do we see the EBITDA margins or net margins of the Belgium and Netherlands entities?
Eashwar Iyer
I think we have to look at this business in its totality. I think to what Tema has also mentioned. I think while India is the manufacturing hub or the back office hub of the world as far as cutting and polishing is concerned, the markets are still in the US from a retail standpoint. So there is an important strategic play for what the teams in the US and Europe actually bring to us. So from that standpoint, I think that is the reason we talk of a one IGI concept. We leverage the strength of the retail markets in other parts of the globe with the manufacturing strength in India.
So most of the certification happens here in India. And to the point that was discussed during the financials, there is obviously a large commission payout that has happened to Dubai and us. So that’s, you know, that’s the way it pans out because customers get identified by our local teams who then end up in India for certification. So I think let’s look at it. I think. Yeah,
Sumeet Khaitan
Fair point sir. Thank you so much.
Eashwar Iyer
Take care.
Operator
Thank you. The next question is from the line of Bharat from NC Research. Please go ahead.
Sumeet Khaitan
Yes sir. Thank you for the opportunity. Sir. The question is on the margin side. So in your FY27 guidance you have indicated revenue growth of 15% and EBITDA growth is slightly high at 50%. I just wanted to understand the levers for the same. That is my first question
Eashwar Iyer
Again Bharat, I think this is more of operating leverage. Our business model is pretty straightforward. Some of these incremental revenues actually flow into the bottom line and that’s the reason why we are guiding for a faster EBITDA growth versus revenue growth. So structurally the business gives us that sort of leverage.
Sumeet Khaitan
And sir, you guided for 15% revenue growth. Just wanted to understand the key reasons for it. I mean different levers for that. So I mean you see an increased market share both in Nvidia and natural diamonds or is it more to do with increased geographical penetration? So what would be the important driver for that?
Eashwar Iyer
No Bharat, I think the focus for us is all the four large segments. And the fifth segment that’s got added now is Gemstone thanks to the EGL acquisition. So each of these have to kick in and that’s what the management’s endeavor is. Whether it’s 15%, 17%, we don’t know. But these are just broad guidelines in terms of what we see is happening within the business. So I think yeah, last year we obviously over delivered to whatever was the guidance. Let’s see how this year pans out is just the first quarter.
Sumeet Khaitan
Okay, and so last question from my side is that you talked about increased capacity in the LBD business. So with geography you’re seeing increased capacity addition. Is it more on the US side of A or the Indian side or do you say any other market? You know, increasingly, increasingly
Tehmasp Printer
The manufacturing capacity is in India. In Surat, you know the marketing requirement is Different. But you know, the increase in capacity is all done generally in Surat in India.
Operator
Thank you. The next question is from the line of Shweta from. I thought pms. Please go ahead.
Unidentified Participant
Hi sir, I just had one question regarding the LGD LOOSE certification. I just wanted to see if we are seeing any change in the format of the certificates that take place in the near term.
Tehmasp Printer
Shweta. We are committed to identify a gemstone or a diamond along with the four Cs. Ours is an independent certifying body and we will not deviate from the traditional 4C’s certification. So we are committed to keep our certification on lab grown as well as on natural diamonds according to the 4C that has been there for nearly a century.
Unidentified Participant
Okay, but sir, is there no pressure from retailers for a change in this or something like that?
Tehmasp Printer
In fact, the retailers enjoy this because, you know, everyone is so conversant with the 4Cs that any new nomenclature which doesn’t really support the 4C’s is confusing.
Unidentified Participant
Okay, okay, understood sir. And one more question is, do we have any long term contracts with any retailers or is it like an order basis?
Tehmasp Printer
No, we have contracts with the manufacturers, you know.
Unidentified Participant
So those
Tehmasp Printer
Are ongoing? Yeah, those are ongoing.
Unidentified Participant
And these are volume based?
Tehmasp Printer
These are. Yeah, these can be scaled on the volume. Yes, you. Right,
Unidentified Participant
Okay. So these are long term contracts.
Tehmasp Printer
Yes.
Unidentified Participant
Okay. Thank you so much all the time.
Operator
Thank you. If that was the last question for the day, I would now hand the conference over to the management for closing comments. Over to you, sir.
Eashwar Iyer
Okay, I think. Thanks everyone. This has been quite participative and in case for a shortage of time, et cetera, we’ve been unable to address any of your queries. Please reach out to us and we shall be happy to clarify on any other doubts, etc. That you may have. Thanks once again for everyone. We look forward to seeing you next quarter. Thanks.
Tehmasp Printer
Thank you very much for everyone.
Eashwar Iyer
On behalf
Operator
Of International Zoological Instit. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.