IGIL - International Ge

📊 NSE: IGIL 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 8:24

💰 Financial Performance

Revenue Growth by Segment

Consolidated certification revenue grew 20% YoY in Q3 CY25 to INR 2,941 Mn. Segment growth for 9M CY25 shows LGD Jewelry leading at 32% YoY, followed by LGD at 18%, Natural Diamonds (ND) at 14%, and ND Jewelry at 12%. Gemstones and others declined by 18% YoY.

Geographic Revenue Split

A large portion of revenue is concentrated in the regions of Gujarat and Maharashtra, making the business vulnerable to regional economic downturns. The company also maintains sales and marketing arms in the US and Europe to influence manufacturers to seek IGI certificates.

Profitability Margins

Consolidated PAT margin for 9M CY25 improved to 43.7% from 39.8% YoY, a 390 bps increase. Standalone PAT margin for Q3 CY25 stood at 57.8% compared to 57.0% in Q3 CY24, driven by operating leverage and efficiency gains.

EBITDA Margin

Consolidated EBITDA margin for 9M CY25 was 60.0%, up 320 bps from 56.8% YoY. Standalone EBITDA margin for Q3 CY25 was 72.8%, a slight decrease from 74.7% in Q3 CY24 due to increased fixed assets and depreciation/amortization costs.

Capital Expenditure

The company is expanding capacity, resulting in increased fixed assets. Depreciation and amortization (D&A) expenses rose to INR 11 Cr in recent periods. The company holds cash reserves of approximately INR 400 Cr for potential acquisitions and dividends.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company maintains a very strong cash position of INR 400 Cr and generates roughly INR 500 Cr in annual PAT, suggesting minimal reliance on external debt.

⚙️ Operational Drivers

Raw Materials

As a service-based certification provider, primary inputs are specialized gemmological equipment (fixed assets) and skilled labor (employee benefits). Employee benefit expenses for Standalone Q3 CY25 were INR 304 Mn, representing 12.6% of revenue.

Import Sources

Not specifically disclosed, but operations are centered in India (Gujarat and Maharashtra) with international certification hubs in Belgium, Netherlands, and Turkey.

Key Suppliers

Not disclosed in available documents; the business model relies on manufacturers and retailers submitting diamonds for certification rather than traditional raw material suppliers.

Capacity Expansion

Current capacity allowed for the issuance of 9.6 million reports in 9M CY25, a 25% increase from 7.7 million reports in 9M CY24. Expansion is ongoing through the addition of fixed assets to support double-digit volume growth.

Raw Material Costs

Not applicable as a service provider; however, 'Other Expenses + Purchase & Stock in trade' for Standalone Q3 CY25 stood at INR 350 Mn, up 51% YoY, reflecting increased operational scale.

Manufacturing Efficiency

Volume growth (26% YoY in Q3 CY25) outpaced revenue growth (21% YoY), indicating high throughput. Average Realized Price (ARP) for Standalone Q3 CY25 was INR 773, up 2% YoY.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is driven by the 'Lab-Grown Diamond (LGD) evolution' which is seen as a long-term trend. The company is investing in brand building (e.g., sponsoring the Women's World Cup) and leadership interventions in the US market. They are also evaluating acquisition opportunities using their INR 400 Cr cash reserve.

Products & Services

Certification reports for Natural Diamonds, Lab-Grown Diamonds, Natural Diamond Jewelry, Lab-Grown Diamond Jewelry, and Gemstones.

Brand Portfolio

IGI (International Gemmological Institute).

New Products/Services

Expansion into LGD Jewelry certification, which grew 32% YoY in 9M CY25, now contributing 8.2% of Q3 CY25 certification revenue.

Market Expansion

Significant leadership investments and interventions are being made in the US market to influence manufacturers and increase market share.

Market Share & Ranking

Described as a market leader in the gem and jewelry certification industry, particularly in the LGD segment.

Strategic Alliances

The company is backed by Blackstone, with several Blackstone MDs and Principals serving on the Board of Directors.

🌍 External Factors

Industry Trends

The industry is undergoing a major shift with the introduction of Lab-Grown Diamonds (LGD), which has propelled growth for the last 8-9 quarters. IGI views this as the beginning of a 3-4 year trend with no immediate bottlenecks.

Competitive Landscape

Key competitors are not named, but the company competes with other global gemmological laboratories for certification volume.

Competitive Moat

Moat is built on brand recognition and a 'pedigreed' independently-led board. The sales and marketing arms in Europe and the US act as a moat by influencing manufacturers to choose IGI certification over competitors.

Macro Economic Sensitivity

Highly sensitive to economic fluctuations and geopolitical instability which impact luxury goods demand and the jewelry market.

Consumer Behavior

Rising consumer demand for Lab-Grown Diamonds is a primary driver, with LGD now representing 52.3% of Q3 CY25 certification revenue.

Geopolitical Risks

Geopolitical instability is cited as a risk that could impact market demand and regulatory environments across its international operations in Belgium, Turkey, and the Netherlands.

⚖️ Regulatory & Governance

Industry Regulations

Subject to regulatory changes in the gem and jewelry industry and international trade standards for diamond grading and certification.

Taxation Policy Impact

Effective tax rate is implied by the difference between PBT (INR 1,824 Mn) and PAT (INR 1,391 Mn) for Standalone Q3 CY25, approximately 23.7%.

⚠️ Risk Analysis

Key Uncertainties

The stabilization level of PAT margins following capacity expansion and the long-term sustainability of the 15% revenue growth guidance as the LGD market matures.

Geographic Concentration Risk

High concentration in Gujarat and Maharashtra, India, which are the primary hubs for diamond processing.

Third Party Dependencies

Dependent on manufacturers' preference for IGI certification; if major manufacturers shift to other labs, volumes would drop significantly.

Technology Obsolescence Risk

The company must continuously invest in fixed assets and gem-testing technology to maintain its certification authority against synthetic diamond advancements.