International Gemological Institute Limited – Investor Presentation Summary

Key Operational Highlights

  • Operates 37 laboratories across 10 countries with global certification standards
  • Certified 8.3 million reports in 12M CY2023, 10.6 million in 12M CY2024, and 12.8 million in 12M CY2025
  • January 2026 acquisition of American Gemological Laboratories (AGL) to strengthen colored gemstone certification capabilities
  • Maintains 21 schools of gemology that train industry gemologists and supply talent
  • Implementing AI/ML interventions for process efficiency, automated work allocation, and performance dashboards

Key drivers of operational performance: Global expansion, technological process improvements, and category diversification through acquisitions

Segment-wise Performance

  • Natural Diamond Certification: Core historical business segment
  • Lab-Grown Diamond Certification: Growing volume segment driven by market expansion
  • Gemstone Certification: Expanded through AGL acquisition (January 2026)
  • Jewelry Certification: Category-agnostic approach across all jewelry types
  • Education Services: Through 21 global gemology schools

Explanation of significant changes in segment performance: Revenue diversification beyond diamonds through AGL acquisition aimed at increasing colored gemstone revenue share

Financial Highlights

Revenue: Rs. 12,291 Mn (12M CY2025)

EBITDA: Rs. 7,367 Mn (12M CY2025)

PAT: Rs. 4,447 Mn (12M CY2025)

EPS: Not Specified

Margins: EBITDA Margin 59.9%, PAT Margin 36.2% (12M CY2025)

YoY/QoQ comparison:

  • Q4FY25 PAT: Rs. 420 Mn at 46.2% margin
  • Q1FY26 PAT: Rs. 447 Mn at 48.7% margin
  • Q4FY26 PAT: Rs. 552 Mn at 55.2% margin
  • Q1FY27 PAT: Rs. 552 Mn at 55.2% margin
  • AGL contributed incremental 3% to revenue and 2% to EBITDA for Q1FY27

Drivers of financial performance: Volume growth in certifications, operational efficiencies, high-margin business model, and strategic acquisitions

Comparison to market estimates: Not Specified

Key Risks: Lab-grown price pressures, customer concentration, maintaining grading consistency while scaling, self-certification by large retailers, trade friction & demand cycles

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Operations span 10 countries including India, USA, China, Middle East & Africa, Belgium, Netherlands, Turkey

Balance Sheet Snapshot

Net Debt/Equity: Debt-free balance sheet (maintains net-cash position)

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Strong cash flow generation, high EBITDA to FCF conversion, maintains balance sheet strength for strategic opportunities

Capex & Cash Flow Health

Capital Expenditure: Not Specified (but described as "asset-light" with "little capital needed to grow")

Free Cash Flow: Strong conversion trend shown but specific values not provided

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified (maintains debt-free status)

Investment Rationale: Focus on new labs, new geographies, capacity expansion, technology and AI implementation

Strategic & R&D Initiatives

Investments in Innovation: Process reengineering, AI-led process efficiency, technological interventions for productivity, ongoing gemology research, AI/ML implementations

Expected impact on growth: Allows same team to certify more stones, faster, at lower operating cost without changing grading standards

Strategic Rationale: Expanding into high-growth markets (colored gemstones via AGL), reducing operational costs through technology, maintaining global certification standards

Industry Trends & Business Environment

Macro/Industry Trends:

  • Global jewelry market size: $340-350 Bn CY2025, expected $410-430 Bn by CY2030E (3-5% CAGR)
  • Global retail diamond jewelry consumption: $105-115 Bn CY2025, expected $135-145 Bn by CY2030E (4-6% CAGR)
  • Certification volumes: 33-38 Mn CY2025, expected 75-80 Mn by CY2030E (17-19% CAGR)
  • Certification penetration: 70-75% CY2025, expected 80-85% by CY2030E
  • Lab-grown diamond wholesale prices stabilized since 2025
  • Indian LGD brands raised over $90M in last 12 months
  • Polished LGD exports from Surat up ~50% YoY to ~$100M in June 2026

Impact on Company: Growing certification demand across all stone categories, expansion opportunities in emerging markets, increased need for trusted certification standards

Management Commentary & Growth Outlook

Strategic Outlook: "The Future is Certified" - every structural force shaping the industry points to increased certification demand

FY Guidance: Not Specified

Market Share Targets: Leading independent certification franchise with significant market share (estimates as of CY25 based on value)

Risks and Opportunities: Managing risks through diversification across formats, geographies, and customer types; creating consumer pull through marketing; maintaining grading consistency through technology and protocols

Additional Material Sections

Brand Development Initiatives:

  • Two-layer moat strategy: Trade trust authority → consumer trusted certification brand
  • B2B initiatives: D Show participation, co-branded certification, in-store VR experience
  • B2C initiatives: Digital campaigns, in-store experience, influencers
  • Sports sponsorships: ICC Women's World Cup (Star Sports, JioHotstar), IPL Gujarat Titans official certification partner

Consumer Insights:

  • 52% of diamonds acquired in India in 2025 are worn as everyday wear
  • 15% of Indian women now own natural diamond jewelry (4pp increase over last 3 years)
  • 80% of luxury sales are digitally influenced
  • 86% of diamond demand attributed to Gen Z & Millennials