IGI upgrades FY27 growth guidance on festive demand and natural diamond recovery

MUMBAI: International Gemological Institute (IGI) has upgraded its financial guidance for the current fiscal year, projecting mid-20% revenue growth as natural diamond demand recovers and festive sales gain momentum. The diamond and gemstone certification body expects business momentum to remain robust through the festive season, supported by stable pricing in the lab-grown segment and expanding gemstone operations.

The revised outlook follows a strong first-half performance for the company, which certifies diamonds, coloured stones, and jewellery. Eashwar Iyer, Group CFO of IGI, noted that the company initially started the year with a 15% revenue and 20% EBITDA growth guidance. "We've upped our guidance... Given the H1 performance and the industry tailwinds, we expect that momentum to continue," Iyer said, indicating that full-year revenue growth could reach the mid-20s or higher.

During the recent quarter, IGI reported a 32% increase in revenue and a 39% growth in EBITDA, alongside a 26% rise in certification volumes, as reported by CNBC TV18. Growth was primarily led by the lab-grown diamond segment, with loose stone certifications rising 37% and jewellery certifications increasing 47%. Meanwhile, the natural diamonds segment, which grew 8% in the first half, is expected to hit double-digit growth by the end of the financial year. IGI shares were trading at ₹352.33 on the NSE, valuing the company at ₹15,227.15 crore.

Beyond diamonds, IGI is expanding its gemstone certification operations following the acquisition of AGL. The company is extending this business beyond New York to markets including India, Thailand, and Hong Kong. Tehmasp Printer, Managing Director and Global CEO of IGI, highlighted that while wholesale diamond prices have seen softness, the retail market remains strong, with lab-grown diamond prices holding steady over the last 18 months. Printer noted that the advent of lab-grown diamonds has transformed them into an affordable luxury, expanding the overall consumer base for diamond jewellery.

The upgraded guidance underscores a stabilising trend in the broader diamond market, where the initial disruption caused by lab-grown diamonds is now transitioning into a coexistence model. Iyer emphasised the company's neutral stance, stating, "We believe that both the segments are going to coexist because each of them satisfies a specific consumer need". This dual-track demand allows certification bodies like IGI to benefit from volume growth in lab-grown stones while riding the recovery in natural diamond jewellery sales during peak festive periods like Diwali.

Looking ahead, IGI expects stronger October trends and festive demand to sustain its performance beyond the upgraded guidance. As the company scales its on-site laboratories to improve turnaround times and expands its gemstone footprint globally, it remains well-positioned to capitalise on the evolving preferences of the modern diamond consumer.