Smallcap Stock Hits 10% Upper Circuit After Reporting 43% YoY Profit Growth in Q2 FY27
The share of the company, which is one of the world's largest independent certification and accreditation services providers in the fields of diamond, gemstone, and jewellery, came into focus after posting strong Q2 numbers.
With a market capitalization of Rs 15,227 crore, International Gemological Institute Limited ’s share on Thursday made a day high of Rs 352.35 per share, hitting 10 percent upper circuit from its previous close of Rs 320.35 per share. The stock of the company gave a return of 2 percent over the last year.
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Q2 Result Overview
QoQ View : Revenue increased to Rs 398 crore in Q2 FY27 from Rs 371 crore in Q1 FY27, registering a 7 percent growth QoQ. EBITDA rose to Rs 245 crore in Q2 FY27 from Rs 224 crore in Q1 FY27, up 9 percent QoQ. Net profit increased to Rs 186 crore in Q2 FY27 from Rs 166 crore in Q1 FY27, up 12 percent QoQ. EPS increased to Rs 4.30 in Q2 FY27 from Rs 3.84 in Q1 FY27, up 12 percent QoQ. YoY View : Revenue increased to Rs 398 crore in Q2 FY27 from Rs 304 crore in Q2 FY26, registering a 31 percent growth YoY. EBITDA rose to Rs 245 crore in Q2 FY27 from Rs 176 crore in Q2 FY26, up 39 percent YoY. Net profit increased to Rs 186 crore in Q2 FY27 from Rs 130 crore in Q2 FY26, up 43 percent YoY. EPS increased to Rs 4.30 in Q2 FY27 from Rs 3.00 in Q2 FY26, up 43 percent YoY.
Revenue Mix: IGI’s certification revenue increased 32 percent year on year to Rs 387.5 crore in Q2 FY27, compared with Rs 294.1 crore in Q2 FY26. The company issued 4.35 million certification reports, up 26 percent from 3.45 million a year ago. Revenue from operations rose 31 percent to Rs 398 crore, while total revenue increased 32 percent to Rs 416.8 crore.
Lab-grown diamond (LGD) loose stone certification remained the largest revenue segment, contributing 54 percent of certification revenue in Q2 FY27, compared with 52 percent in the year ago quarter. Its revenue grew 37 percent to Rs 211.1 crore. Natural diamond (ND) certification revenue increased 8 percent to Rs 52.9 crore, but its share of the mix declined from 17 percent to 14 percent. Natural diamond jewellery certification revenue rose 3 percent to Rs 63.5 crore, while its revenue share fell from 21 percent to 16 percent.
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LGD jewellery certification revenue grew 47 percent to Rs 35.6 crore, increasing its share of certification revenue from 8 percent to 9 percent. Gemstones and other certification recorded the fastest growth, with revenue rising 331 percent to Rs 24.4 crore and its share increasing from 2 percent to 6 percent. Meanwhile, the average realised price per report rose 4 percent to Rs 891 from Rs 854, supporting overall revenue growth.
Q2 FY27 Key Highlight
IGI’s consolidated certification report volume grew 26 percent year on year to 4.35 million reports in Q2 FY27, compared with 3.45 million in Q2 FY26. Standalone India volumes increased 19 percent to 3.68 million reports. The consolidated average realised price per report also rose 4 percent to Rs 891 from Rs 854, while the standalone average realised price increased 7 percent to Rs 827 from Rs 773.
The company continued expanding its international presence, with operations in key markets such as Dubai and Turkey. It also entered Italy, a major European jewellery market, and outlined plans to expand into Saudi Arabia and other international markets. These initiatives are aimed at strengthening its global footprint and reaching more customers across key diamond and jewellery hubs.
IGI’s certification revenue from gemstones and other certification services increased 331 percent year on year to Rs 24.4 crore in Q2 FY27, compared with Rs 5.7 crore in Q2 FY26. The company also highlights its expansion into coloured gemstone testing following the acquisition of American Gemological Laboratories (AGL), broadening its certification capabilities beyond diamonds.
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About the C ompany
International Gemological Institute (IGI) is one of the world’s largest independent providers of diamond, gemstone and jewellery grading and certification services. Established in 1975, the company also offers gemology education, appraisals and accreditation services. It grades both natural and lab-grown diamonds and holds ISO 17025 accreditation for grading both categories. IGI also focuses on environmental, social and governance (ESG) initiatives to reduce its environmental impact and promote social responsibility.