IGI's margin rebounds sequentially as Q4 profit rises 27.62% YoY
Revenue rose 20.93% YoY, but expenses grew 21.61%, leaving the margin 0.2 percentage points lower; other income and a lower tax rate supported net profit.
Filed 20 May 2026, 16:57 IST · after market close · International Gemological Institute Limited (IGIL)
Key takeaways
- Consolidated Q4FY26 net profit rose 27.62% YoY to Rs 179.6 cr, helped by a lower tax rate and higher other income.
- Operating margin improved 4.15 percentage points QoQ as revenue grew 15.29% while expenses rose 3.37%.
- The stock gained +6.51% on the first session after results, versus a median post-results move of 2.51% across its last four results.
Price around the results
Q4FY26 growth accelerated sequentially
Consolidated revenue grew 20.93% YoY and 15.29% QoQ, while operating profit increased 20.55% YoY and 23.29% QoQ. The sequential acceleration was sharper at the operating-profit level than at revenue, reflecting the margin recovery in the quarter. Net profit growth reached 27.62% YoY and 33.48% QoQ.
Cost control drove the sequential margin recovery
QoQ revenue growth of 15.29% outpaced expense growth of 3.37%, lifting operating margin by 4.15 percentage points. YoY, however, expenses grew 21.61% against revenue growth of 20.93%, so the margin narrowed by 0.2 percentage points. Other income rose 116.25% YoY and contributed 7.64% of pre-tax profit, while the tax rate fell 1.79 percentage points to support reported earnings.
Margin recovered for a third straight quarter
Operating margin rose from 57.66% in Q1FY26 to 58.00% in Q2FY26, 59.86% in Q3FY26 and 64.01% in Q4FY26. IGI's margin was 32.86 percentage points above the 31.15% median for the 12 Services-sector peers that had reported the quarter.
Management highlighted LGD capacity and in-factory grading
Management said the lab-grown diamond market has significant planned capacity scale-up in 2026 and that IGI sees a clear line of sight to growth in FY26. The company said it has established in-factory grading with key LGD growers. The presentation also said the top five to six players account for 65–70% of the LGD grower market.
The market reaction was unusually positive for IGI
The stock gained +6.51% on the first session after the results, with volume at 14.48x its reference level, and remained up +5.54% after five sessions. This was well above the 2.51% median absolute move across the last four results, all of which were followed by gains. The return moderated to +1.02% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹369 cr | ₹320 cr | +15.29% | +20.93% |
| Other income | ₹18 cr | ₹11 cr | +60.19% | +116.25% |
| Expenses | ₹133 cr | ₹128 cr | +3.37% | +21.61% |
| Operating profit | ₹236 cr | ₹191 cr | +23.29% | +20.55% |
| Operating margin (%) | 64.01% | 59.86% | — | — |
| Interest | ₹3 cr | ₹2 cr | +6.02% | -0.75% |
| Depreciation | ₹13 cr | ₹12 cr | +8.17% | +29.80% |
| Profit before tax | ₹239 cr | ₹188 cr | +26.72% | +24.58% |
| Tax | ₹59 cr | ₹54 cr | +9.78% | +16.14% |
| Net profit | ₹180 cr | ₹135 cr | +33.48% | +27.62% |
| EPS (₹) | ₹4.16 | ₹3.11 | +33.76% | +27.61% |
Operating margin of 64.01% compares with a Services sector median of 31.15% across 12 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.51% | +6.53% |
| Next session | +5.86% | — |
| 5 sessions | +5.54% | +6.01% |
| 15 sessions | +4.10% | — |
| 30 sessions | +1.02% | — |
Volume on the results session was 14.48× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The LGD market has significant planned capacity scale-up in 2026.
- IGI sees a clear line of sight to robust growth in FY26.
New initiatives
- IGI has established in-factory grading with key LGD growers.
Competition
- The top five to six players hold 65–70% of the LGD grower market.
What to watch
- Whether operating margin holds above 64.01% after the Q4FY26 recovery.
- Whether expenses continue to grow slower than revenue after the YoY gap of 21.61% versus 20.93%.
- Whether other income remains near its 7.64% share of pre-tax profit.