International Gemmological Institute (India) Ltd. is the country’s leading independent gemological certification and accreditation services provider for gemstones. It plays a critical role in the global diamond and jewellery identification reports and value chain. As the first international laboratory with a dedicated focus on diamond grading, colored stones certification, and studded jewelry assessment, IGI (India) has emerged as a critical node in India's gemstone ecosystem. With its global network and a reputation for accuracy and credibility, IGI has become a trusted partner for manufacturers, retailers, and consumers. The company operates multiple laboratories and training institutes across India and benefits from the country’s status as the world’s largest hub for diamond cutting and polishing.
Business model and verticals
a) Diamond Grading
IGI provides grading services for both natural and laboratory-grown diamonds. Each report evaluates the four Cs: cut, colour, clarity, and carat weight, along with additional parameters such as fluorescence and symmetry. The company also undertakes screening and sorting services, which are particularly valuable for retailers and manufacturers managing large inventories.
b) Quality Evaluation of Coloured Stones
IGI assesses the quality and authenticity of a wide range of coloured gemstones, including rubies, sapphires, emeralds, and other precious and semi-precious stones. The jewelry identification reports outline the unique characteristics of each stone, giving buyers and sellers confidence in the transaction and supporting transparency in the marketplace.
c) Grading and Assessment of Jewellery
The company certifies finished jewellery pieces, evaluating not only the quality of diamonds but also the craftsmanship and overall design of the jewelry. Key factors such as mounting, symmetry, and finishing are reviewed, enabling retailers and exporters to demonstrate authenticity and value to end consumers.
d) Educational Programs
IGI offers a range of educational programs and professional courses through its Schools of Gemology, covering gemology, diamond grading, and jewelry design. These initiatives contribute to industry development by creating a skilled workforce, while also reinforcing IGI’s reputation as a standard-setter in the global jewellery ecosystem.
Advanced equipment used by IGI
IGI leverages modern technologies to ensure accuracy, trust, and efficiency in diamond certification. These advanced tools strengthen its credibility and support scalable growth in a niche global industry.
Client submission process for gemstone and diamond certification
Submission request
Client (jeweler, trader, exporter, or individual) submits the item by one of the following routes: walk-in, secure courier/shipment with a completed request form, or via an online pre-booking followed by physical submission.
Where applicable, the client indicates preferred contact details and any special handling or return instructions.
Certification request form
The client must complete a Certification Request Form, which includes the following details: client’s name, firm name, and contact; item description (number of stones, type, diamond / coloured stone /jewellery); and the specific service requested (identification, grading, origin analysis, advanced testing, etc.).
The Client is required to sign the lab’s standard disclaimer acknowledging that the laboratory report is limited to only gemological facts (not market value), and that items shipped are received in sealed condition and are sent at the client’s risk during transit.
Receipt and tracking
On intake, the lab issues a submission receipt / token number and assigns a unique ID to each submitted item.
The item’s chain of custody is logged to ensure secure handling, and the client is provided a reference for progress updates via phone/email. Where available, online tracking or a status portal is also provided for real-time progress updates.
Testing and certification
Laboratory examination is carried out using standard gemological methods and instruments (microscopy, spectrometers, UV/long-wave and short-wave lamps, etc.) to determine natural vs synthetic origin, detect treatments, and assess quality parameters.
The testing process is tailored to the client's requested service, such as diamond grading and coloured stone identification/ origin determination, or treatment analysis.
All findings are compiled into the appropriate output: A Gem Identification Report, Diamond Grading Certificate, or issue jewelry identification reports which documents the test methods, measured properties, observed treatments (if any), and the unique item ID for reference and traceability.
Delivery and return
Once certification is complete, the client collects the certificate and item in person, or the laboratory arranges secure return shipping as per the client’s instructions.
Items are returned with the certificate reference. Where applicable, the stone/item is sealed or affixed with the certificate number to preserve authenticity.
(Each step is logged in the lab record to ensure traceability and to support client queries.)
Also read: Our fundamental outlook on India’s port sector
Revenue breakup
Source: IGI investor presentation (Revenue figures in INR Mn)
The business remains largely India-centric, reflecting the dominance of India in global diamond processing. Loose diamond certification contributes the largest share of revenues, followed by jewellery grading and training services. In recent years, the growth of LGD certification has sharply increased its share of total volumes.
Management commentary highlights that lab-grown diamond reports have more than doubled year-on-year and now represent nearly half of loose stone certifications, a trend expected to accelerate further.
Financial performance
Source: IGI investor presentation (Figures in INR Mn)
In CY24, International Gemmological Institute (India) Ltd. reported strong operational momentum across its key metrics. The number of reports issued increased by 26% year-on-year, rising from 8.3 million in CY23 to 10.5 million in CY24, reflecting both higher certification volumes and the growing contribution from lab-grown diamonds. Revenue from operations advanced 17% to ₹1,053 crore compared with ₹898 crore in CY23, supported by steady growth across core certification segments.
EBITDA grew by 21% year-on-year to ₹600 crore from ₹496 crore in CY23, with margins improving from 55.2% to 56.9%. This expansion underscores the scalability of IGI’s asset-light model and its ability to translate higher report volumes into improved profitability.
Source: IGI investor presentation (Figures in INR Mn)
In CY24, profit after tax rose 29% year-on-year to ₹427 crore, compared with ₹331 crore in CY23. The PAT margin strengthened to 40.6% from 36.8% in the previous year, reflecting both higher volumes and disciplined cost management.
Return on capital employed stood at 48% in CY24, down from 52% in CY23, primarily due to the equity issuance completed in December 2024. Similarly, return on equity also moderated slightly to 47% from 51% in the prior year, though it remained at robust levels by industry standards.
3-year financial performance
IGI financial performance (₹ crore)
| Year | Sales | OPM % | Net Profit |
|---|---|---|---|
| Dec 2022 | 491 | 68% | 242 |
| Dec 2023 | 639 | 71% | 325 |
| Dec 2024 | 1,053 | 57% | 427 |
| TTM | 1,121 | 60% | 491 |
International Gemmological Institute (India) Ltd. has demonstrated consistent top-line growth over the last three years. Sales increased from ₹491 crore in December 2022 to ₹1,053 crore in December 2024, representing more than a two-fold rise, and further reached ₹1,121 crore on a trailing twelve-month basis. Net profit followed a similar trajectory, expanding from ₹242 crore in December 2022 to ₹427 crore in December 2024 and further to ₹491 crore on a trailing basis, underscoring the scalability of the business.
While operating profit margins remained at elevated levels, there was some moderation from 71% in December 2023 to 57% in December 2024, before recovering to 60% in the trailing period. This reflects both the high inherent profitability of the asset-light certification model and the sensitivity of margins to business mix, particularly the growing contribution from jewellery and lab-grown diamond certifications.
Strategic initiatives
The company’s growth strategy is focused on consolidating its leadership in lab-grown diamond certification while strengthening its jewellery grading services. Investments are being made in advanced equipment and digitalisation to improve grading accuracy and consistency. IGI is also expanding its training initiatives to ensure a skilled workforce capable of handling rising certification volumes. The recent exit from smaller non-core operations and increased automation have enhanced efficiency, while partnerships with retailers are helping to build branded certification programs that encourage repeat demand and strengthen long-term relationships.
Industry outlook
The global gemological certification market is underpinned by structural tailwinds. Rising consumer demand for authenticity and transparency has made certification an integral step in diamond and jewellery sales. The sharp rise in lab-grown diamond penetration is expected to be the single biggest driver of volume growth in the coming years, and IGI is well placed to capitalise on this trend with its early leadership.
India’s role as the global hub for diamond processing ensures strong, ongoing demand for certification. Though the industry remains exposed to cyclical swings in global jewellery demand and discretionary spending, certification remains a mandatory step in the value chain. This makes IGI’s business more resilient even in challenging macro environments.
Curious about another high-growth space? Dive into our Indian Healthcare sector analysis.
Valuation and scenarios
At the current market capitalisation of ₹15,977 crore and a stock price of ₹370, IGI trades at 32.6x trailing earnings. While the asset-light model, high operating margins, and strong free cash flow generation justify a premium multiple, the sustainability of this valuation depends on earnings growth over the next two years. To assess this, three illustrative scenarios are considered for CY26.
| Scenario | Key Assumptions | Earnings CAGR (till CY26) | Forward P/E on CY26 earnings (approx.) |
|---|---|---|---|
| Bear Case | Slower lab-grown diamond (LGD) adoption, modest natural diamond growth |
~10% | ~27x |
| Base Case | Certification volumes expand 18–20% annually, healthy pricing, jewellery program traction |
~20% | ~23x |
| Bull Case | Accelerated LGD penetration, strong operating leverage |
~30% | ~19x |
Even under conservative assumptions, IGI sustains a premium valuation multiple relative to peers, reflecting the structural strength of its business model. In the base and bull cases, faster adoption of certification services and LGD penetration not only support robust earnings growth but also compress valuation multiples to more comfortable levels, offering long-term re-rating potential.
Final perspective
International Gemmological Institute (India) Ltd. occupies a unique niche as the only publicly listed company in India focused on diamond and jewellery certification. Its entrenched brand, high-margin asset-light model, and leadership in lab-grown diamond certification provide a structural advantage in a growing market. Current valuations reflect much of the growth potential, yet the company’s ability to scale certification volumes, preserve profitability, and deepen partnerships with retailers and manufacturers will be the key drivers of long-term value creation. With a debt-light balance sheet, strong free cash flow generation, and a differentiated positioning as a trusted certification franchise, IGI sustains its premium valuations even in conservative scenarios. Furthermore, accelerated growth could offer meaningful re-rating comfort.
Turn research into action and explore smarter investing opportunities with CubePlus.
Disclaimer: The information provided in our blogs is for informational purposes only and should not be construed as financial, investment, or trading advice. Trading and investing in the securities market carries risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Copyrighted and original content for your trading and investing needs.
© 2025 — Tradejini. All Rights Reserved.
