International Gemological Institute expects double-digit natural diamond certification growth by year-end. Group CFO Eashwar Iyer said, "We've grown some 8% in H1 this year, and we expect that to hit double digits as we close the year." Strong festive demand and recovery in jewellery sales helped the company raise guidance.
International Gemological Institute expects double-digit natural diamond certification growth by year-end, driven by festive demand and recovery. Following strong first-half results, IGI upgraded its financial guidance, supported by stable lab-grown diamond pricing and expanding gemstone certificati...
International Gemological Institute (IGI) has raised its growth guidance after a strong first-half performance. The company expects natural diamond certification growth to accelerate in the second half of the financial year 2026-27 (FY27) and reach double digits by the end of the year, supported by festive demand and a recovery in jewellery sales, Eashwar Iyer, Group CFO of IGI said.
The gemological organisation, which certifies diamonds, coloured stones and jewellery, has also raised its revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth guidance after reporting strong first-half performance.
"We've upped our guidance. We've started the year with a 15% revenue and a 20% EBITDA guidance. Given the H1 performance and the industry tailwinds, we expect that momentum to continue," Iyer said. He indicated that full-year revenue growth could reach the mid-20s or higher, saying, "Surely, absolutely. If not better."
IGI reported a 32% increase in revenue and 39% growth in EBITDA, while certification volumes rose 26% during the quarter. Growth was led by lab-grown diamonds, with loose stone certifications rising 37% and lab-grown jewellery certifications increasing 47%.
Iyer said the company expects the business momentum seen so far this year to continue into the second half, aided by stable lab-grown diamond pricing, expanding gemstone certification and stronger demand during the festive season.
Iyer said the natural diamonds segment has started to recover after a slow start to the year. "We've grown some 8% in H1 this year, and we expect that to hit double digits as we close the year."
He said demand for natural diamond jewellery is expected to improve during the Diwali season despite volatility in gold and silver prices.
The company has also upgraded its financial outlook after delivering stronger-than-expected first-half performance. "We've upped our guidance... Given the H1 performance and the industry tailwinds, we expect that momentum to continue."
Beyond its core diamond certification business, IGI is expanding its gemstone certification operations following the acquisition of AGL, which contributed to higher realisations during the quarter. The company is now extending the gemstone certification business beyond New York to markets including India, Thailand and Hong Kong.
Iyer said IGI remains neutral in terms of the debate between natural and lab-grown diamonds and expects both categories to coexist. "We believe that both the segments are going to coexist because each of them satisfies a specific consumer need."
He added that certification remains essential irrespective of whether a diamond is natural or lab-grown, with grading standards remaining consistent across both categories.