💰 Financial Performance

Revenue Growth by Segment

Jewellery manufacturing contributed 97.30% of standalone turnover in FY25. Consolidated revenue for FY25 reached INR 800.6 Cr, a 29.54% increase from INR 616.8 Cr in FY24. H1 FY26 revenue grew 40.8% YoY to INR 437.6 Cr.

Geographic Revenue Split

The USA remains the prime export destination. B2B export revenue is the primary driver, with Lab-Grown Diamond (LGD) jewellery now accounting for 90% of Q2 FY26 export revenue, up from 77% in Q2 FY25.

Profitability Margins

PAT margins remained stable at 14.6% in FY25 and 14.8% in H1 FY26. Consolidated Profit Before Tax (PBT) for FY25 was INR 172.5 Cr, representing a 41.3% increase over the previous year's INR 122.1 Cr.

EBITDA Margin

EBITDA margin for FY25 was 22.4% (INR 179.2 Cr). H1 FY26 EBITDA margin stood at 21.6% (INR 94.5 Cr). Management provides a steady-state EBITDA guidance range of 18% to 22%.

Capital Expenditure

The company raised INR 202.05 Cr through a Qualified Institutional Placement (QIP) in late 2025 for growth. Domestic retail expansion via ORIGEM stores requires INR 3.5 Cr to INR 4 Cr per store in capital and inventory.

Credit Rating & Borrowing

The company utilizes Gold Metal Loans (GMLs) to defer gold payments by 6 months, optimizing working capital. Specific credit ratings and interest rate percentages were not disclosed in the documents.

⚙️ Operational Drivers

Raw Materials

Gold (representing 30% to 50% of the finished product cost), Lab-Grown Diamonds (LGD), and Natural Diamonds.

Import Sources

The company operates a US subsidiary for initial casting to establish 'US Product of Origin,' with finishing and diamond setting occurring in India (SEEPZ, Mumbai).

Capacity Expansion

The business model is designed for scalability without rebuilding systems. Domestic expansion involves opening ORIGEM stores with a target payback period of less than 3 years at INR 40 lakhs monthly sales.

Raw Material Costs

Gold price volatility is a major risk as it constitutes up to 50% of COGS. Inventory for a single ORIGEM store includes INR 1.2 Cr to INR 1.5 Cr in gold value alone.

Manufacturing Efficiency

Consolidated revenues increased 43% YoY in Q2 FY26 despite a 30-day operational disruption, indicating high throughput efficiency and strong demand absorption.

Logistics & Distribution

The company employs an omnichannel strategy including in-store and online sales. Online sales accounted for 20% of Q2 FY26 revenue.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by increasing wallet share with US corporate customers, transitioning the export mix to 90% Lab-Grown Diamonds which offer better margins, and scaling the domestic ORIGEM retail brand in India. The company is also targeting US 'mom-and-pop' stores through its 'Jewel Fleet' model.

Products & Services

Gold, silver, and diamond jewellery (Natural and Lab-Grown), and investment activity.

Brand Portfolio

ORIGEM (Lab-Grown Diamond retail), Jewel Fleet (B2B distribution).

New Products/Services

Aggressive push into Lab-Grown Diamond (LGD) jewellery, which grew from 77% to 90% of export value YoY in Q2.

Market Expansion

Expansion of the ORIGEM retail footprint in India and deepening penetration in the US corporate B2B jewellery market.

🌍 External Factors

Industry Trends

The industry is rapidly shifting toward Lab-Grown Diamonds (LGD). Goldiam has transitioned from a natural diamond company to a major LGD supplier, with LGD now 90% of export revenue.

Competitive Landscape

Large Indian jewellery players are entering the LGD segment, increasing competition in the domestic market.

Competitive Moat

The primary moat is the integrated supply chain and the 'US Product of Origin' ruling from US Customs, which provides a 15-25% cost advantage over competitors facing full tariffs. This is sustainable due to the company's established US subsidiary infrastructure.

Macro Economic Sensitivity

Projected India GDP growth of 6.4% in FY26 and easing food inflation are expected to boost discretionary consumption for jewellery.

Consumer Behavior

Shift toward LGD for better value-for-money and discretionary consumption, supported by tax incentives in the Union Budget 2025-26.

Geopolitical Risks

Global trade uncertainties and potential US tariff actions are cited as primary headwinds for the export-heavy business.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by US Customs rulings for 'Product of Origin' and SEEPZ export regulations in India. Compliance with SEBI (LODR) and Ind AS is maintained.

Environmental Compliance

The Risk Management Committee monitors ESG (Environmental, Social, and Governance) related risks as part of its formal mandate.

Taxation Policy Impact

The company follows a 14.6% to 14.8% effective PAT margin profile; specific tax rates were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Bullion risk (gold price volatility) and US trade policy changes are the most significant uncertainties, potentially impacting margins by 2-4% if not managed.

Geographic Concentration Risk

High geographic concentration in the USA, making the company vulnerable to US economic slowdowns or tariff hikes.

Third Party Dependencies

Dependence on US Customs rulings to maintain the tariff-mitigated 'Product of Origin' status for its jewellery.

Technology Obsolescence Risk

The company is mitigating technology risk by aggressively adopting LGD manufacturing technology, moving away from the stagnating natural diamond segment.