Intl Gemological Inst Q2 FY27 results: net profit up 43.2% to ₹185.84 crore, revenue up 31.0%

How did Intl Gemological Inst perform in Q2 FY27?

International Gemological Institute Limited reported consolidated revenue of ₹398.02 crore in Q2 FY27, up 31.0% from ₹303.74 crore in Q2 FY26. Total income rose 31.8% to ₹416.83 crore, while EBITDA increased 38.8% to ₹244.51 crore. The EBITDA margin was 61.4%, up 3.4 percentage points from 58.0%.

Profit before tax rose 40.0% to ₹245.62 crore and net profit increased 43.2% to ₹185.84 crore. Basic EPS was ₹4.30, compared with ₹3.00 in Q2 FY26. Against Q1 FY27, revenue rose 7.3%, EBITDA increased 9.3%, and net profit rose 12.1%; the EBITDA margin increased 1.0 percentage point to 61.4%.

On the standalone basis, revenue was ₹305.6 crore, up 26.9%, while profit after tax was ₹169.72 crore against profit before tax of ₹139.13 crore. The quarterly results cover July–September 2026.

What changed in Intl Gemological Inst's costs and profit?

Total expenses rose 21.7% from ₹140.72 crore in Q2 FY26 to ₹171.22 crore in Q2 FY27. Employee cost increased ₹15.87 crore to ₹87.05 crore, depreciation rose ₹4.59 crore to ₹15.60 crore, and other expenses increased ₹8.48 crore to ₹62.88 crore. Finance costs declined ₹0.04 crore to ₹2.11 crore, while there was no exceptional item.

Other income rose by ₹6.34 crore to ₹18.81 crore from ₹12.47 crore in the year-ago quarter. Profit before tax increased by ₹70.13 crore to ₹245.62 crore, and tax expense rose by ₹14.08 crore to ₹59.77 crore. Net profit consequently increased by ₹56.05 crore to ₹185.84 crore.

The company’s investor presentation said certification revenue growth was primarily driven by 47% year-on-year growth in lab-grown diamond jewelry certification, 37% in lab-grown loose stone certification, and 8% in natural-diamond loose stone certification. Report volume increased 26% to 4.35 million, while average realised price rose 4% to INR 891.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹768.8 crore, down 15.5% from ₹909.43 crore in H1 FY26. Total income fell 14.9% to ₹803.45 crore, while profit before tax declined 13.6% to ₹468.42 crore and net profit fell 11.5% to ₹351.58 crore. Basic EPS was ₹8.14, compared with ₹9.19.

The consolidated financial results cover the first half ended 30 September 2026. The filing stated that H1 FY27 certification volumes were 7.91 million reports, up 22% from 6.48 million, while certification revenue rose 27% to INR 7,474 million from INR 5,862 million.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2165.07 crore, compared with ₹1857.84 crore at 31 March 2026, while total equity was ₹1750.99 crore against ₹1488.0 crore. The company had no borrowings at either balance-sheet date. Cash increased to ₹130.29 crore from ₹81.63 crore.

Trade receivables declined to ₹240.2 crore from ₹288.52 crore, while inventories were ₹1.03 crore compared with ₹1.25 crore. Trade payables were ₹48.19 crore, against ₹52.43 crore at 31 March 2026. For H1 FY27, operating cash flow was ₹415.67 crore, investing cash flow was negative ₹257.43 crore and financing cash flow was negative ₹129.69 crore; capital expenditure was ₹40.98 crore. No comparable prior-year cash-flow figures were provided.

How has Intl Gemological Inst done over the last 8 quarters?

Revenue rose for each of the last four quarters and reached ₹398.02 crore in Q2 FY27, the highest point in the reported series. The lowest quarterly revenue in the series was ₹265.0 crore in Q3 FY25, while the EBITDA margin bottomed at 57.4% in that quarter.

Net profit increased from ₹113.78 crore in Q3 FY25 to ₹185.84 crore in Q2 FY27, which was the highest level shown. The EBITDA margin reached its series high of 64.2% in Q4 FY25 and was 61.4% in the latest quarter, higher than 60.4% in Q1 FY27. Revenue and profit have each risen year on year for four consecutive quarters.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 21 October 2026. The company also filed its Q2 and H1 FY27 investor presentation on the same day. The reviewed filing did not announce a dividend, fund raise or appointment.

What did Intl Gemological Inst's management say?

Management said FY27 revenue-growth guidance was raised from 15% and EBITDA-growth guidance from 20%, without formalising a new range. The company expects full-year performance broadly similar to H1 revenue growth of 27% and EBITDA growth of 34%, and expects operating leverage to continue, with EBITDA growth normally outpacing revenue growth.

Management said natural-diamond certification grew 8% in Q2, with 5% sequential growth, and expects that momentum to continue over the next two quarters. It does not anticipate a slowdown in the lab-grown business as added grower capacity reaches IGI laboratories. Management also said AGL contributed 3% to Q2 revenue growth, while overseas certification revenue rose 31% excluding AGL.

Management identified high and volatile gold prices, festive stocking shifting from September to October, investment in people, marketing and commission expense in India, and the subjectivity of three of four grading attributes as risks. Chief Executive Officer Tehmasp Printer said: “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.”

How did Intl Gemological Inst shares react?

The stock rose 4.2% within five minutes of the filing, 3.8% after 15 minutes and 4.2% after 30 minutes. It closed the reaction day 9.7% higher from its pre-results close of ₹322.00. By the next day’s close, the stock was up 16.6% from that close, and by five sessions it was up 26.1%.

The Diversified Commercial Services industry median was unchanged on the reaction day, down 3.6% by the next day’s close and down 1.1% by five sessions. IGIL’s reaction-day move was therefore 9.7 percentage points above the industry median; by five sessions, the excess move was 27.2 percentage points. Earlier reaction-day moves were negative 3.0% on 23 July 2026, positive 5.3% on 20 May 2026 and positive 9.1% on 27 January 2026.

How did other Diversified Commercial Services companies do?

Twenty-four other Diversified Commercial Services companies had filed for the quarter by 4 November 2026. Their median revenue growth was 15.6%. Of the peers with revenue-growth comparisons, 15 grew slower than Intl Gemological Inst and 9 grew faster than it.

Eighteen of 30 peers reported higher profit. These figures place Intl Gemological Inst’s reported revenue growth and profit increase alongside the companies that had filed in the same quarter; they do not include the company itself.