IGI shares hit 10% upper circuit as Q2 profit rises 43%

International Gemological Institute (IGI) shares rose 10% to Rs 352.50, reaching their upper circuit on the NSE during trading on Thursday, October 22, after the company reported a 43% year-on-year increase in September-quarter profit, according to Economic Times Markets.

For Q2 FY27, ended September 30, 2026, consolidated profit after tax reached Rs 185.8 crore, compared with Rs 129.8 crore a year earlier. Revenue from operations increased 31% to Rs 398 crore from Rs 303.7 crore. The share price is a reported trading snapshot, not a closing price or live quote.

Margins strengthen as certification volumes rise

EBITDA increased 39% year on year to Rs 244.5 crore from Rs 176.3 crore. The EBITDA margin widened by 340 basis points to 61.4%, against 58% in the corresponding quarter, while the profit-after-tax margin stood at 46.7%.

IGI issued 43.5 lakh grading and certification reports during the quarter, an increase of 26% from a year earlier. The company reported higher demand across lab-grown diamonds, natural diamonds, jewellery and coloured gemstones.

Lab-grown diamonds lead category growth

The lab-grown diamond business posted faster growth than natural diamonds: loose stones grew 37% year on year, while lab-grown diamond jewellery increased 47%. Natural diamond loose stones grew 8%, and natural diamond jewellery rose 3%.

Coloured gemstones registered a sevenfold increase, including contributions from AGL. That reported figure includes AGL's contribution and should not be read as a measure of growth excluding it.

First-half profit reaches Rs 351.6 crore

For the half-year ended September 30, revenue from operations rose 27% year on year to Rs 768.8 crore. EBITDA increased 34% to Rs 468.3 crore, with its margin improving to 60.9% from 57.8%.

First-half profit after tax grew 37% to Rs 351.6 crore, yielding a PAT margin of 45.7%. Report volumes reached 79.1 lakh, up 22% from the corresponding period.

Management points to festive and holiday demand

Managing Director and CEO Tehmasp Printer attributed the quarter's performance to healthy demand and operational execution. He described IGI's approach as category-neutral, with certification spanning natural and lab-grown diamonds, jewellery and coloured gemstones to offer independent assurance to buyers and sellers.

Printer said lab-grown diamonds were gaining wider acceptance, while natural diamonds and gemstones continued to present opportunities. He also said retailers and manufacturers were preparing for stronger demand around India's festive season and the US holiday ordering cycle. These comments reflect management's outlook, rather than realised sales for those periods.

He identified IGI's international network, range of certification services and investment in technology, brand-building and customer engagement as factors supporting its longer-term growth plans.