International Gemmological Institute (India) Ltd

Transcript of the Earnings Call held for the quarter and nine month ended September 30,  2025    Dear Sir/ Madam,    Pursuant to our letter dated October 30, 2025, intimating the Earnings Conference Call of International  Gemmological Institute (India) Limited for the quarter and nine month ended September 30, 2025,  which was held on November 5, 2025, we hereby enclose the transcript of the said conference call.    This intimation will be made available on the Company’s website at www.igi.org      This is for your information and record.     Thanking you,    Yours faithfully,  For International Gemmological Institute (India) Limited      Hardik Desai  Company Secretary and Compliance Officer  Membership No.: A35491    Encl: a/a  HARDIK JITENDRA DESAI Digitally signed by HARDIK JITENDRA DESAI Date: 2025.11.12 17:35:35 +05'30'

MR. TEHMASP PRINTER – MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER, INTERNATIONAL GEMMOLOGICAL INSTITUTE (INDIA) LTD. MR. EASHWAR IYER – CHIEF FINANCIAL OFFICER, INTERNATIONAL GEMMOLOGICAL INSTITUTE (INDIA) LTD. MODERATOR: MR. SUMEET KHAITAN – MUFG INTIME

Ladies and Gentlemen, Good Day and welcome to International Gemmological Institute (India) Limited Q3 & 9M CY25 Earnings Conference Call hosted by MUFG Intime. As a reminder, all participant line will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumeet Khaitan from MUFG Intime. Thank you and over to you sir. Sumeet Khaitan: Good evening, everyone. I welcome you all to the Earnings Conference Call to discuss Q3 & 9M CY25 Results of International Gemmological Institute (India) Limited. To discuss the Results, we have from the Management, Mr. Tehmasp Printer – M.D. and CEO and Mr. Eashwar Iyer – CFO. They will take you through the “Results” and the “Business Performance” after which we will proceed for Q&A session. Before we proceed with the call, I would like to mention that some of the statements made in the today’s call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and the other filings that can be found on the company’s website. With this, now I hand over the call to the management for their opening remarks. Thank you and over to you sir. Tehmasp Printer: Thank you Sumeet. Good evening, ladies and gentlemen. I would like to welcome you all to the Q3 9M CY25 Earnings Call. I trust that everyone has had a chance to review our Financials and Investor Presentations which have been made available on both the stock exchanges as well as on our company website. It is a pleasure to connect with you all and “Share Insights into our Business Strategy and Outlook.”

Okay. Harit, I think it is a very relevant question that you have asked. What we have seen during the quarter is a very high incidence of smaller carat size natural diamond and lab- grown jewelry coming in for certification. So, that is the reason why you see that despite a 29% increase in natural diamond and lab-grown diamond, you are seeing a slight decline in ASP, again, driven purely by a change in the carat size that we are currently receiving. Harit Kapoor: So, Eashwar there is nothing… Almost entirely.. Yes Eashwar Iyer: So, as we have been mentioning in the last couple of calls as well, I think there has been many changes to pricing. We have seen a lot of stability in pricing over the last three, four quarters. So, this is more in terms of segment mix and driven by within the segment, the product size mix. Harit Kapoor: Very, very clear. The second question was on the trends through the quarter. So, some of the checks that suggested that maybe pre-tariff, there would have been a very sharp pickup in growth especially of products going to the US as they wanted to kind of beat the tariff deadline and then post that, it would have been a bit slower. Just wanted your assessment of how it spanned out through this period of time. It has been fairly consistent, or it has been a bit lumpy, just wanted your thoughts on the growth? Eashwar Iyer: I think, Harit, our volumes over the last three quarters have been more or less consistent and I will just read out some numbers which is in public domain. Quarter 1, we did some 3.1 million reports. Quarter 2 was 3.03, and in this quarter is 3.45 million reports. So, from a volume standpoint, we have not seen any massive ups or lows as far as consistency of grading is concerned. Obviously, the tariffs kicked in during the latter half of the quarter, which also coincided with the Diwali period in India. So, we have seen some significant ramp up of demand driven by the Diwali quarter impact as well as far as jewelry is concerned, etc., But having said that, obviously, as we speak, the tariffs are on. So, we continue to evaluate for any supply chain changes that may be occurring. Obviously, with IGI having its presence in lot many geographies, it is possible that in case there is any shift from a supply chain standpoint, I think we are well positioned to leverage that in terms of ramping up capacity in some of the other locations, be it Dubai or Hong Kong or Turkey, etc., So, from that standpoint, we are keeping our eyes and ears open in case of there are any dynamic changes, we would be obviously ensuring that we are up to the task in terms of ramping up our capacities elsewhere.

And just to add to what Eashwar has said, this is Printer here. Our domestic market consumption is extremely strong and we are very predominant in the domestic sector. So, tariff has virtually no significant or no impact at all on the domestic sector. So, from that way, the domestic sector has really ramped up and especially during the Diwali season, we have done exceptionally as well, as you can see, in spite of the numerous headwinds that we have been facing and challenging conditions that we have been facing in the diamond industry. Harit Kapoor: Got it. And the last bit is, if you look at your guidance, you have hit your nine-month number is in line with your revenue kind of guidance and given that you have spoken about maintaining full year guidance, it implies that Q4 or the October to December quarter should also be reasonably okay. Is that a visibility that you have today, the early part of the quarter, which has gone by the first month, has not shown any significant difference and hence, broadly, you should be in line with that 15% revenue guidance for the full calendar year? Tehmasp Printer: Yes, Harit. That is for sure. Harit Kapoor: Great. I will get back in queue. Thank you very much. Moderator: Thank you. Next question is from Harish Advani from Axis Capital. Please go ahead. Harish Advani: Hi. Thank you for taking my question. So, my first question was on the international business. So, while we continue to see some stress out there with growth at about 6% in revenue terms, but within this, how should we look at it? How much of an impact are you seeing from tariffs in some of these geographies, and which are the markets which are doing better, and which are the markets which are seeing some stress if you could tell me about this in the first question? Eashwar Iyer: Okay. I think in line with what we have discussed in the previous two quarters, the trends in the Netherlands holding which has Dubai and China under it, they are continuing to perform extremely strong. Obviously, we have had headwinds in both the European market as well as US market. So, that has not changed significantly in Quarter 3. So, most of the performance in the subsidiaries is driven by some excellent performance in the Middle East and in the China market.

Okay. Just a follow up on that. So, when you say they are doing significantly better, can you kind of quantify to a certain extent like 1.5x or 2x more than what the overall reporting is for the international? Eashwar Iyer: No, see, the Netherlands business is growing at around 20% revenues. But we have seen softness in the Belgium and the US entity. So, that is the way it stands and it has remained more or less consistent with the earlier two quarters as well. Harish Advani: Okay, got it. And a similar question on India as the earlier participant. So, while we knew that tariff was going to be increased from a certain date, did we see anything on the LGD part of it in terms of our customers asking for any ASP-related cuts, or that continue to be at the current pricing as the current quarter or the last quarter? Eashwar Iyer: Yes, so in line with whatever we just mentioned to the earlier question, we are seeing stability in pricing, there has not been any significant change in this quarter. Tehmasp Printer: Yes, I mean, this LGD in fact has helped the diamond tier to keep their factories running. And on domestic demand is pretty evident as we have already related. And overall, the impact of tariff on certification is quite insignificant. So, we as you can see from our results, tariff really has not made any impact on our revenues. In fact, it has increased our revenues on the domestic and other markets. Harish Advani: Okay, perfect. So, then there would be typically those seasonal-related vagaries which happen but nothing from tariff? Okay, thank you. I will come back in the queue for follow ups. Thank you. Moderator: Next question is from Smith Gala from RSPN Ventures. Please go ahead. Smith Gala: Yes, so my question is realization per report have dropped more than 5% at consol level, with the mix more or less remaining the same. India, which is almost 75% of the business showed 2% increase in realization. Why has there been a significant fall in operations outside India and how do you see it going forward? Eashwar Iyer: Yes, I think that is more of related to a geographical mix. As I mentioned, normally, US and European markets have a higher realization and that has not been doing too well. So, the markets of Middle East, for example, is more jewelry-driven, and China again is a large element of our revenues come from lab-grown. So, I think it is more a geographical mix,

Thanks for the opportunity. So, I have a few questions. If you can just tell what has been the impact of US tariffs in your international business as in if the tariffs were not there, then how would the performance have been, to what extent it would have improved? Tehmasp Printer: See, tariff is a reality right now. So, we have to engage with that. But as I said earlier, tariff has not really played a significant impact on the certification business. You understand? So, this is where quite a lot of our turnover is from the Indian continent. So, we are very strong on the Indian continent and tariff plays no role or no impact on the domestic market. Rajesh Jain: Yes, but I was asking about the international market? Tehmasp Printer: Yes, so that is what I am saying. Tariff from the international market, like Eashwar just told you, it is 12% in the US and 12% in Europe. So, that has been a little affected, but not too much. From a certification point of view, tariff has really been quite insignificant even in the international market. Rajesh Jain: Okay. So, you are saying the tariff or not tariff, I mean, the US and Netherlands, maybe only a few bps or a few percentages here and there it would have got the impact? Tehmasp Printer: Yes, that is correct. Rajesh Jain: Okay. And so I just wanted to know, as far as India is concerned, is the business coming from mainly the large chain jewelry stores, or you are also getting the business from smaller jewelry stores? Because I spoke to three, four jewelry stores, and all of them were not so keen on getting certification for the LGD diamond. But you mentioned among the largest stores, nine out of 10 chain stores are your customers. So, is there a perception difference between the larger stores and the smaller stores? Tehmasp Printer: Not really. See, the thing is, the chain stores have a number of stores. Okay? So, they have a cumulative effect. But the independents and the stores across the country are playing as significant or in fact their role is even more significant on an overall basis. You understand? We supply, we cater to the entire supply chain in the gem and jewelry industry right from the manufacturer, to the wholesaler, to the trader, to the manufacturing of the jeweler, to the jewelers, to the retail shops, online, offline. So, we are holistically available for all the stakeholders in the gem and jewelry sector.

Okay. And my second and final question is, somewhere I heard in the earlier responses that we are now having more low-carat diamonds and that was the reason why realizations are also lower. Is it to do with natural diamonds or lab-grown diamonds where we are doing certification? Eashwar Iyer: Natural diamonds. Sheela Rathi: So, hitherto the mix was more than three carat diamonds was about 5% for us from a mix perspective. Now, how is that mix changed now? I mean, it is more moving towards a less than three-carat or how is it if you could just quantify that? Tehmasp Printer: It is not on the single solitaire basis. What we are speaking about is on the jewelry. Earlier, the jewelry piece used to carry say one and a half-carat diamonds. Now this average jewelry piece is carrying about a carat plus. You understand? So, the size of the jewelry piece where diamonds are concerned has somewhat been decreased, but the quantities have increased. So, that is the mix that you are talking about. It is not a lower caratage in the loose diamonds. That remains more or less the same. Sheela Rathi: Understood. Just one more question here. Tehmasp you also talked about we being a large part of our customer base is domestic as we cater to the domestic market. So, has the profile of our customer base changed in the last 12 months, I mean, have there been new customer additions because, there are a lot of B2C players getting into the LGD space, so if there is any change we have seen? Tehmasp Printer: No. So, what we see changes, I mean, going into the third and second and the Third-Tier cities, so we are gaining grounds there. We are going inroads into India. And also, I mean, the LGD jewelry space is also rapidly increasing even in India. So, these are the two aspects that we can see where our growth is coming from. Sheela Rathi: Understood. All right. Thank you, Eashwar. Thank you, Tehmasp. Tehmasp Printer: Thank you, Sheela. Moderator: Next question is from Rajesh Jain from RK Capital. Go ahead, please. Rajesh Jain: Yes, thanks. I had two more questions. So, one is that, how has been the trend so far in October and November compared to the previous quarter?

I think, Rajesh, these are early days and we would not want to give you something forward looking, etc., specifically for the quarter. As we have indicated, we are confident of delivering the 15% revenue growth and 20% EBITDA growth which was our guidance at the beginning of the year. So, we are not seeing any difference in business as we speak. Rajesh Jain: Okay. And on a long-term basis also, do you think this same 15% revenue and 20% EBITDA is sustainable beyond this financial year? Eashwar Iyer: See, again, the industry is obviously going through a major shift with the introduction of lab-grown diamonds, and it has played out over the last eight, nine quarters in terms of lab- grown actually propelling the industry forward, and again, we believe that this is just the beginning of the trend, and this lab-grown evolution is just starting on. So, I do not think there should be anything that should be a bottleneck over the next three to four years as far as this industry for lab-grown is concerned. So, that long-term outlook for us is pretty positive in terms of what we will, therefore, I think, ride the industry growth, so to say, over the next three to four years. Rajesh Jain: Okay. My other question is, can you give a sense of the Netherlands market? So, while answering the previous question, you spoke of the US market and your presence and strategy there. Can you tell something about Netherlands market and your subsidiary operations there? Eashwar Iyer: In Netherlands, we have five, six businesses which roll up under the Netherlands holding company. We have markets of Hong Kong, Thailand, Middle East, China, and Turkey, which is a part of this group. So, for example, Dubai and Middle East is more a jewelry market, China is more lab-grown, Hong Kong and Thailand is more natural diamond jewelry. So, each geography has its own strengths in terms of which segment they play in. I presume I have answered your question. Rajesh Jain: So, are you also doing any expansion in terms of your lab presence in other fast-growing markets next to China or other countries? Eashwar Iyer: We have two labs in China. We have a couple of labs in Dubai. We expanded with an additional lab in Dubai this year. So, we continue to scout the market and as and when we see that there are opportunities, nothing will prevent us from expanding in existing geographies as well.

Okay. Thank you. Moderator: Next question is from Smith Gala from RSPN Ventures. Please go ahead. Smith Gala: Thank you for the follow-up. My next question was like, we have a lot of cash reserves, approximately INR 400 crores in the balance sheet and we are going to generate roughly INR 500 crores of PAT. So, any plans to utilize that? Eashwar Iyer: Okay. At the moment, I think the company is sitting on a very strong cash position. And as we have articulated in the past, some of this will get paid as dividends. But obviously, we are also keeping our eyes open in terms of opportunities for acquisitions, etc., So, we will see how that pans out. At the moment, we have no specific information to share with the broader group. Smith Gala: Sure. That was all from my side. Tehmasp Printer: Thank you, Smith. Moderator: Next question is from Rahul Picha from Multi-Act PMS. Please go ahead. Rahul Picha: Yes, thanks for the opportunity. My question is on the guidance of 15% revenue growth and EBITDA growth of 20%. So, when you look at nine months’ number, we have delivered 15% revenue growth and EBITDA growth of around 22% odd, and when we look at the initial commentary on the advertisement spend that we have done in Women’s World Cup. So, do we expect Q4 margins to be lower because of that versus our nine- month average? Eashwar Iyer: Rahul, I think, obviously, we are delivering much better than what it is. So, what we are saying is there is no change to the guidance that we have given at the beginning of the year, we are confident of meeting it, or probably surpassing it by a few percentage points. Tehmasp Printer: And we are also living up to our brand building exercise. And this was a great opportunity. And do not forget that our women won the World Cup, which is a tremendous achievement for the country as well as for IGI having sponsored the Women’s Cup. Rahul Picha: Okay, thanks. That is it from my end.

Next question is from Sameer Ray, an investor. Please go ahead. Sameer Ray: Thank you for the opportunity and congratulations to the management for nice result. I just wanted to know, see the picture in your last quarter, how the things are going as in regards to the tariff that has been imposed on India? And if this tariff remains there, how do we look into the exports from India to USA in Quarter 1 and Quarter 2 next year? Eashwar Iyer: Hi, Sameer, I think we have answered that question earlier on the call. We have not seen any significant disruptions from the tariff announcements. So, we are keeping our fingers crossed in terms of how that pans out. Obviously, there is a lot of discussion that is going on within the two governments and we are hoping that things fall in place over the next month or so. And as I mentioned, with our cross geographical presence, IGI is at least well positioned to leverage on some of the benefits that may therefore accrue because certain countries that are at a lower tariff regime. We will see how that pans out. But at the moment, we are not seeing any disruptions to our business. Sameer Ray: Okay, thank you. Moderator: Next question is from Angad from Sameeksha Capital. Please go ahead. Angad: Hi, thank you for the opportunity and congratulations for the good set of results. One small clarification. In December, our parent company had created a pledge in the promoter entity. Just wanted to understand, is it still there, have we -? Eashwar Iyer: I think that has been clarified. You can look at our latest clarification that we have given both to BSE as well as NSE. There is absolutely no pledge on IGI shares by the parent entity. Angad: Got it. Thank you so much. Moderator: Next question is from Jayesh Shah from OHM Portfolio. Please go ahead. Jayesh Shah: Hi, thanks for the opportunity. Just a clarification. This World Cup sponsor expenses, are they already in the P&L in the nine months or you would expect something to come in even in the following quarters?