International Gemmological Institute (India) Limited (IGI) is a premier global authority in diamond, gemstone, and jewelry certification. With a stated mission built on "A Legacy of Trust. A Future of Innovation," the company provides independent and expert grading services that are critical for transparency and confidence in the gem and jewelry trade. IGI's services span the entire value chain, from certifying loose Natural Diamonds (ND) and Lab-Grown Diamonds (LGD) to grading studded jewelry. The company has established itself as an indispensable partner for manufacturers, retailers, and consumers, ensuring quality and authenticity.

IGI's leadership structure combines deep industry experience with strategic oversight from major institutional investors. The company is led by Managing Director & CEO Tehmasp Nariman Printer, who has been with IGI for over 25 years. The board is chaired by Anoop Mehta, an industry veteran with over three decades of experience. The board also includes nominee directors from Blackstone, a major global investment firm and the company's promoter, alongside distinguished independent directors with backgrounds in finance and retail. This blend of operational expertise and strong governance underpins the company's strategic direction and financial performance. As a publicly traded entity, its shares are listed on the BSE Limited (Scrip Code: 544311) and the National Stock Exchange of India (Symbol: IGIL).

Official Website: http://www.igi.org/

• Full-Year 2025 Consolidated Performance:

• Revenue: Total revenue from operations grew 17% year-over-year (YoY) to INR 12,291 million in the 12 months (12M) of 2025. Certification revenue specifically increased by 18% YoY to INR 11,878 million.

• Volume: The company certified 12.81 million reports, a significant 21% YoY increase in volume.

• Profitability: EBITDA grew 23% YoY to INR 7,367 million, with the EBITDA margin expanding by 300 basis points to 59.9%. Profit After Tax (PAT) saw a 24% YoY growth, reaching INR 5,316 million, and the PAT margin improved by 270 basis points to 43.3%.

• Earnings Per Share (EPS): Basic EPS for 12M 2025 stood at INR 12.30, up from INR 10.74 in the previous year.

• Q4 2025 Consolidated Performance:

• Revenue: Revenue from operations for the fourth quarter (Q4) 2025 increased by 21% YoY to INR 3,197 million. Certification revenue grew 23% YoY to INR 3,049 million.

• Volume: Total reports certified in the quarter were 3.21 million, an 11% YoY increase.

• Profitability: EBITDA rose 26% YoY to INR 1,913 million, with the margin improving to 59.9% from 57.4%. PAT increased by 18% YoY to INR 1,346 million.

• Standalone Performance (India):

• The standalone Indian operations also demonstrated robust growth for 12M 2025, with revenue from operations up 22% YoY to INR 9,561 million.

• Standalone EBITDA grew 22% YoY to INR 6,999 million, maintaining a very high margin of 73.2%.

• Standalone PAT increased by 25% YoY to INR 5,472 million, with the PAT margin expanding to 57.2%.

• Balance Sheet and Cash Flow:

• The consolidated balance sheet remains strong, with total equity increasing to INR 14,097 million from INR 10,627 million.

• The company demonstrates excellent cash generation. For 12M 2025, Net Cash from Operating Activities was INR 5,019 million.

• The Free Cash Flow (FCF) to EBITDA conversion ratio was a healthy 60% for 12M 2025, indicating strong operational efficiency and cash discipline.

The company delivered strong, broad-based growth in revenue and profitability for the full year and fourth quarter, driven by higher certification volumes and significant margin expansion from operating leverage.

• Dominant Market Leadership: IGI holds a commanding market share across all key certification segments.

• LGD Loose Diamonds: 85-90% market share of the certified market.

• ND Loose Diamonds: 55-65% market share of the certified market.

• Studded Jewelry (LGD): 80-90% market share of the certified market.

• Studded Jewelry (ND): 75-85% market share of the certified market.

• Operating Leverage: The company's dominant position and scale allow it to capture a disproportionate share of industry growth with minimal incremental cost, leading to sustained pricing power and high operating leverage.

• Entrenched Relationships: IGI is highly integrated with key lab-grown diamond producers, including having in-factory grading setups. This ensures a predictable and growing volume of business as producers scale their operations.

IGI's primary uniqueness lies in its overwhelming market dominance across both natural and lab-grown diamond certification, which provides significant pricing power and operational scale advantages.

• Dual Market Growth: The overall diamond industry is benefiting from strong demand trends in both the Natural Diamond (ND) and Lab-Grown Diamond (LGD) segments.

• Natural Diamonds: The global market is sized at $85-95 billion, growing at 3-5% annually. Demand is driven by rising affluence, resilient demand for bridal occasions, and increasing online penetration.

• Lab-Grown Diamonds: The global market is sized at $7-8 billion and is growing at a much faster rate of 6-8% annually. The Indian LGD market is projected to grow even faster at 13-15% CAGR.

• LGD Market Maturation: The LGD industry is entering a "volume-scale phase." After a period of price adjustments, pricing has stabilized over the past 18 months. The focus is shifting from rapid growth to efficiency, quality, and certification.

• India as a Global Hub: India is emerging as the global manufacturing hub for LGDs, driven by technology, scale, and cost efficiencies. Polished LGD exports from India have grown exponentially, with volumes doubling in the last fiscal year.

• Increased Need for Certification: As the LGD market scales and retail becomes more formalized, the need for SKU-level certification is structurally increasing. This trend benefits independent certifiers like IGI.

The industry outlook is positive, with structural tailwinds from both the resilient natural diamond market and the rapidly expanding lab-grown diamond sector, where certification is becoming increasingly essential.

• Volume-Led Growth: IGI's growth is fundamentally driven by an increase in the number of certifications. The company achieved a 21% YoY growth in total reports for 12M 2025, reaching 12.81 million reports.

• Strong Performance in Core Segments: Revenue growth was primarily driven by strong performance in high-value loose stone segments.

• Consolidated 12M 2025: LGD loose stone revenue grew 22% YoY, and ND loose stone revenue grew 20% YoY.

• Shift in Revenue Mix: A favorable shift in the product mix towards higher-value ND and LGD loose stones drove a 11% YoY increase in the Average Realized Price (ARP) per report in Q4 2025 to INR 951.

• LGD as a Key Driver: The rapid scaling of the LGD market provides clear visibility for future growth. As LGD growers expand capacity, IGI's volumes are expected to grow in tandem due to its entrenched position.

Growth is robust and powered by a significant increase in certification volumes, particularly from the fast-expanding lab-grown diamond segment and a favorable shift towards higher-value products.

• LGD Inflection Point: The maturation of the LGD market presents a multi-year opportunity. As grower margins become thinner, the need to differentiate products through independent, third-party certification increases, structurally benefiting IGI.

• Rising Certification Density: The increasing formalization of jewelry retail, especially for LGDs, is driving the need for certification at the individual stock-keeping unit (SKU) level. This expands IGI's addressable market within the jewelry segment.

• Untapped Potential in India: Jewelry penetration in India remains low at approximately 8%, compared to around 70% in the U.S. This indicates a long runway for growth as rising per capita income and formalization drive higher adoption of certified studded jewelry.

• Validation by Legacy Brands: The entry of established jewelry brands into the LGD space validates the segment and encourages wider adoption by other jewelers, further increasing the demand for certification.

The company is well-positioned to capitalize on the structural shift towards mandatory certification in the high-growth LGD market and the long-term potential of the under-penetrated Indian jewelry market.

• LGD Production Capacity Growth: LGD producers, particularly in India, are aggressively expanding capacity. The number of CVD reactors in India is projected to grow from 8-9k in 2024 to 13-14k by 2026. Growers are planning to double their production capacity over the next three years.

• Healthy Utilization: The LGD industry is operating at a healthy capacity utilization rate of 65-70% globally, indicating that new capacity is being added in response to real demand.

• Company Capex: IGI's consolidated balance sheet shows an increase in Capital Work-in-Progress from INR 361 million in 2024 to INR 588 million in 2025, signaling ongoing investments to support growth.

The significant planned capacity expansions in the LGD industry provide a clear pipeline for IGI's services, and the company is actively investing capital to meet this future demand.

• Significant Margin Expansion: IGI has consistently improved its profitability margins, driven by operating leverage.

• Consolidated 12M 2025: EBITDA margin expanded by 300 basis points to 59.9%, and PAT margin grew by 270 basis points to 43.3%.

• Standalone 12M 2025: The India operations generate even higher margins, with the EBITDA margin at 73.2% and the PAT margin at 57.2%.

• Drivers of Profitability: Margin improvement is a direct result of strong revenue growth outpacing the increase in expenses. For 12M 2025, consolidated revenue grew 17% while total expenses grew only 8%.

• Revenue Mix Protection: The company's focus on larger-carat, higher-value certifications helps insulate revenues and margins from the price volatility and commoditization risk associated with smaller-carat stones.

The company's business model translates strong top-line growth directly into industry-leading profitability, with consistent margin expansion driven by significant operating leverage.

• Clear Market Leader: IGI is the undisputed leader in its key markets, with market share figures that indicate a quasi-monopolistic position in several high-growth segments.

• Dominance in LGD: The company holds an 85-90% share of the certified LGD loose diamond market, making it the default choice for this rapidly expanding category.

• Stronghold in Jewelry: IGI also dominates the certification of studded jewelry, with a 75-85% share for ND jewelry and 80-90% for LGD jewelry.

• Significant Share in ND: Even in the more established Natural Diamond loose stone market, IGI maintains a leading share of 55-65%.

IGI operates from a position of immense competitive strength, with a dominant market share across all its primary business segments that creates high barriers to entry.

• Macroeconomic Headwinds: As with any consumer-facing industry, the company is exposed to risks related to the economic performance of India and key international markets, which could impact discretionary spending on jewelry.

• Competition: While IGI is the current market leader, the "Safe Harbor" statement acknowledges competition as a potential risk to its business and ability to implement its strategy.

• Price Volatility Mitigation: The company identifies price volatility and commoditization risk in small-carat diamonds as a potential threat. It actively mitigates this by maintaining a revenue mix with higher exposure to larger-carat, higher-value certifications.

While exposed to general economic risks, IGI's dominant market position and strategic focus on higher-value segments provide a buffer against industry-specific volatility.

• Strong Institutional Shareholding: The company is backed by prominent institutional investors. As of December 31, 2025, the promoter (Blackstone) holds a 76.55% stake. Foreign Institutional Investors (FIIs) hold 10.55% and Domestic Institutional Investors (DIIs) hold 5.15%.

• Key Investors: Notable institutional investors include the Government of Singapore, Abu Dhabi Investment Authority, and ICICI Prudential Asset Management.

• Superior Cash Flow Conversion: The company exhibits excellent financial health, highlighted by its ability to convert profits into cash. The Free Cash Flow to EBITDA conversion ratio stood at 60% in 12M 2025.

The company's strong institutional backing and excellent cash generation capabilities underscore its financial stability and the market's confidence in its business model.