IGI Profits Soar 43% as Lab-Grown Diamonds Boom

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The International Gemological Institute (IGI) has reported impressive financial growth for the second quarter of fiscal year 2026–27, with profits surging 43% and revenue increasing 31%. Strong demand for lab-grown diamond certification, improving natural diamond activity and expanding colored gemstone services contributed to the company’s performance.

The results also sparked investor enthusiasm, sending IGI shares up 10% to INR 352.50 on India’s National Stock Exchange. According to this Gems News report, the company’s expanding certification business and improving profitability demonstrate how changing consumer preferences are creating fresh opportunities across the global diamond and gemstone industry.

Quarterly Revenue and Profits Surge

IGI reported consolidated quarterly revenue of INR 3.98 billion ($41.9 million), compared with INR 3.037 billion a year earlier.

Profit after tax jumped 43% to INR 1.858 billion ($19.6 million), while the profit margin reached 46.7%.

For the first half of FY27, revenue climbed 27% to INR 7.69 billion ($81 million), while profit after tax increased 37% to INR 3.52 billion ($37.1 million).

The company issued approximately 4.35 million certification reports during the September quarter, representing 26% year-over-year growth.

Lab-Grown Diamonds Lead Expansion

Lab-grown diamonds emerged as IGI’s strongest growth segment, reflecting increasing demand from jewelry manufacturers and retailers.

Certification activity involving loose laboratory-grown diamonds increased 37%, while lab-grown diamond jewelry recorded an impressive 47% expansion.

The growth highlights the rising popularity of synthetic diamonds, particularly among consumers seeking affordable alternatives to natural stones.

As lab-grown diamond production expands, independent certification remains essential for verifying quality, authenticity and diamond characteristics.

Natural Diamonds Show Encouraging Recovery

IGI’s natural diamond operations also recorded positive growth, with loose natural diamond certification increasing 8% and natural diamond jewelry rising 3%.

Chief Financial Officer Eashwar Iyer expects natural diamond certification growth to reach double digits by the end of FY27.

The anticipated recovery is supported by India’s festive shopping season and stronger jewelry demand during the United States holiday period.

Despite competition from lab-grown alternatives, IGI believes both diamond categories will coexist because they satisfy different consumer preferences.

Colored Gemstones Deliver Exceptional Growth

IGI’s colored gemstone business recorded a sevenfold increase, supported partly by its acquisition of American Gemological Laboratories (AGL).

The company is expanding gemstone certification services beyond New York into major trading centers, including India, Thailand and Hong Kong.

This diversification strengthens IGI’s position in international gemstone identification and grading.

Higher Growth Forecasts Signal Confidence

Following its strong first-half performance, IGI raised its financial growth expectations, with management indicating that annual revenue growth could reach the mid-20% range or higher.

CEO Tehmasp Printer expressed optimism about increasing festive and holiday demand, supported by IGI’s global operations and technology investments.

Strong Outlook for Gemstone Certification

IGI’s latest results highlight the growing importance of independent certification across natural diamonds, lab-grown stones and colored gemstones. While changing market conditions and precious metal prices remain potential challenges, expanding certification demand and international diversification could support continued growth. The company’s ability to serve multiple gemstone categories places it in a promising position as transparency and consumer confidence become increasingly important throughout the global jewelry industry.

For more on IGI, visit:

https://www.igi.org