Asian Star Struggles as Diamond Market Weakens

Gems and Jewelry Companies: Sales Slip Despite Global Reach

Indian diamond powerhouse Asian Star is feeling the pressure of a weakening global diamond market. For the first fiscal quarter ending June 30, consolidated revenue, including operations in the US, Dubai, and Hong Kong, dropped 5% year on year to INR 7.29 billion ($83.3 million). Compared with the previous quarter, this marked a deeper fall of 15%. Interestingly, the company still managed to secure an 11% increase in net profit, reaching INR 193.4 million ($2.2 million). This Gems and Jewelry Companies news report highlights the growing challenges that even major industry players are facing in uncertain times.

Indian diamond powerhouse Asian Star reports declining diamond sales and revenue
Image Credit: AI-Generated

Diamonds Lose Shine While Jewelry Shines Brighter

The company’s core business, loose diamonds, struggled significantly, with sales falling 13% to INR 5.47 billion ($62.9 million) year on year and plunging 18% compared to last quarter. In sharp contrast, jewelry revenue rose 19% to INR 2.01 billion ($23 million), showing consumer interest shifting away from raw stones to finished pieces. This shift is shaping how manufacturers will need to balance their offerings moving forward.

Global Pressures on Diamond Demand

Asian Star’s heavy reliance on diamond manufacturing has become a double-edged sword. Both of its largest markets, China and the US, are under strain. In China, consumer preference has leaned strongly toward gold jewelry for more than a year, sidelining diamonds. Meanwhile, in the US, uncertainties surrounding tariffs and trade policy have created hesitation in the market. The imbalance in supply and demand across certain diamond categories has added further complications, weakening overall performance.

The Outlook Ahead

The latest results suggest that Asian Star and other similar firms must rethink strategies to adapt to shifting consumer behaviors and external market pressures. The sustained favoring of gold over diamonds in China, alongside tariff uncertainties in the US, will likely continue to reshape demand in the near term. Unless the global diamond market finds stability and consumer interest rebounds, the company may need to expand further into jewelry and diversify beyond traditional reliance on loose stones. These developments underline the unpredictable nature of luxury markets and show that even established giants must innovate to stay competitive in changing economic landscapes.

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