IGI Reports Record Q2 FY27: PAT Jumps 43% to ₹185.8 Cr as LGD Demand Surges

Key numbers

PAT Growth YoY	43%Q2 FY27
Market Cap	₹13,855 CrMid-cap
EBITDA Margin	61.4%Record High
PE Ratio	22.73Sector PE 38.72

Key highlights

• Consolidated revenue grew 31% YoY to ₹398 crore in Q2 FY27
• Net profit (PAT) increased 43% YoY to ₹185.8 crore, marking record earnings
• EBITDA margins expanded by 340 basis points to reach 61.4% on premium report mix
• Lab-grown diamond (LGD) jewelry certification volumes surged 47% during the quarter
• Full-year FY27 revenue guidance raised from 15% to 27% plus based on H1 momentum
• Total report volumes reached 4.35 million, representing a 26% year-on-year increase

Explosive Demand for Lab-Grown Diamond Grading

International Gemological Institute reported a structural shift in its certification mix, with lab-grown diamonds (LGD) now driving the bulk of incremental growth. The LGD jewelry segment saw a 47% increase in certification volumes, while loose LGD stones grew by 37%. This surge is particularly evident in the US bridal market, where management notes that LGD penetration has now exceeded 50%.

In India, the festive season and increasing retail adoption by major jewelry chains have contributed to healthy volume traction. Despite natural diamond jewelry certification growing at a more modest 3%, the consolidated volume of 4.35 million reports indicates broad-based market leadership.

Operational Efficiency and Margin Expansion

• EBITDA for the quarter rose 39% to ₹244.5 crore, outpacing revenue growth
• Operating leverage and higher-margin LGD reports drove margins to 61.4%
• The company generated ₹415.7 crore in operating cash flow during the first half of FY27
• Investments in AI-based grading and machine learning are improving grading turnaround times
• Personnel and marketing costs as a percentage of revenue remained stable despite B2C initiatives

Guidance Revision and Global Footprint

Following the strong H1 performance, IGI management has revised its FY27 revenue guidance upward from 15% to approximately 27%. This follows an earlier reaffirmation of the lower 15% target in July 2026. The company is actively expanding its geographic footprint, recently launching operations in Italy and preparing for entries into Botswana and Saudi Arabia.

The acquisition of American Gemological Laboratories (AGL) is also being leveraged to scale up colored gemstone capabilities. These expansions are aimed at achieving a long-term revenue CAGR of 15-20% while maintaining PAT margins in the 40-45% range.

Strategic Focus on Technology and Branding

Our priorities continue to be focused on accelerating the natural diamond growth and gaining market share... AI-based work allocation and scheduling is now in use at our laboratories, allowing the same team to grade more stones efficiently.

What to watch next

• Trading window reopening for designated persons on October 23, 2026
• Expansion of operations into Saudi Arabia and Botswana scheduled for H2 FY27
• Integration of AGL methods across other laboratories for colored gemstone scaling
• Q3 FY27 results announcement expected in January 2027

“This has been the best quarter in IGI's history. Our volumes, our revenue, our EBITDA and our profits were all the highest we have ever reported.”

“Given the first half performance... with revenues growing 27% and EBITDA growing at 34%... we therefore expect to keep outperforming for the full year as well.”

International Gemological Institute · financial snapshot

Share price	₹320.6
Market capitalisation	₹13,855.04 Cr
Revenue (annual)	₹1,597.66 Cr
Net profit (annual)	₹711.20 Cr
Revenue (latest quarter)	₹370.78 Cr+0.60% vs previous quarter
Net profit (latest quarter)	₹165.74 Cr-7.72% vs previous quarter
P/E (TTM)	22.73×Sector 38.72×
Promoter holding	76.55%0.00% QoQ
FII holding	8.79%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.