International Gemological Institute shares surged to their upper price band following strong September-quarter earnings, supported by robust revenue growth, higher operating margins and broad-based demand across diamond and gemstone certification segments.

Shares of International Gemological Institute Limited (IGIL) rallied sharply on Thursday, October 22, 2026, after the company reported strong financial results for the second quarter of FY27. The stock hit its 10% upper circuit at ₹353.20 on the National Stock Exchange (NSE), attracting substantial trading activity as investors responded positively to the earnings announcement.

The company reported a 43% year-on-year increase in consolidated profit after tax (PAT) to ₹185.8 crore for the quarter ended September 2026. Revenue from operations increased 31% to ₹398 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 39% to ₹244.5 crore.

The strong quarterly performance was supported by growth across lab-grown diamonds, natural diamonds and coloured gemstones. Improved operating margins also contributed to the company's earnings momentum.

IGIL Share Price Today: Stock Hits ₹353.20 Upper Circuit

IGIL shares opened approximately 6% higher at ₹339 on the NSE, ending a two-session losing streak. The stock subsequently advanced to ₹353.20, its 10% upper price limit for the day.

Nearly 5 million shares changed hands before trading was halted at the circuit, highlighting strong investor participation following the results.

At 11:24 AM, the stock was quoted at ₹353.20, up ₹32.10 or 10% for the session. Its reported 52-week range stood between ₹287 and ₹388.30.

The rally reflects a favourable market response to the company's quarterly performance. However, a stock reaching its upper circuit does not guarantee further gains, and subsequent price movements will depend on earnings expectations, valuations, trading conditions and broader market sentiment.

IGIL Q2 FY27 Results: Revenue and Profitability Improve

International Gemological Institute delivered strong year-on-year growth across its key financial indicators in Q2 FY27.

Key results for the September quarter included:

• Consolidated profit after tax: ₹185.8 crore, up 43% from ₹129.8 crore a year earlier.

• Revenue from operations: ₹398 crore, compared with ₹303.7 crore in the corresponding quarter last year, an increase of 31%.

• EBITDA: ₹244.5 crore, up 39% year-on-year.

• EBITDA margin: 61.4%, compared with 58% in Q2 FY26, an expansion of 340 basis points.

The increase in EBITDA margin indicates that the company generated a higher operating profit relative to revenue than it did a year earlier. The combination of revenue expansion and margin improvement helped support the rise in net profit.

For investors, sustained revenue growth and profitability are important indicators of business performance. The extent to which IGIL can maintain these trends over subsequent quarters will remain a key factor in assessing its earnings outlook.

Lab-Grown Diamonds Lead Segment Growth

IGIL reported broad-based growth across several categories during the quarter, with lab-grown diamonds making a particularly strong contribution.

The company's reported segment growth included:

• Lab-grown diamond (LGD) loose stones: Up 37% year-on-year.

• Lab-grown diamond jewellery: Up 47%.

• Natural diamond loose stones: Up 8%.

• Natural diamond jewellery: Up 3%.

• Coloured gemstones: Increased sevenfold, including the contribution from AGL.

The performance suggests that demand for certification services remained strong across both lab-grown and natural diamond categories. Certification plays an important role in the gem and jewellery industry by helping establish the characteristics and authenticity of stones, supporting transparency and customer confidence.

The sharp growth in lab-grown diamond jewellery also highlights the increasing adoption of this category. At the same time, the expansion in natural diamond loose stones and jewellery indicates that demand is not limited to lab-grown products.

Growth in coloured gemstones, including AGL, provided another source of diversification during the quarter.

First-Half FY27 Performance Remains Strong

IGIL's financial performance was also positive for the first half of FY27, covering April to September 2026.

Revenue from operations increased 27% year-on-year to ₹768.8 crore, while profit after tax rose 37% to ₹351.6 crore.

The first-half figures indicate that the company's growth extended beyond the latest quarter. However, investors should continue to assess whether this momentum can be sustained as market demand, competitive conditions and the product mix evolve.

Consistent growth across multiple reporting periods would provide a stronger indication of the durability of the company's business performance than a single quarter's results.

Management Highlights Rising Adoption of Lab-Grown Diamonds

Tehmasp Printer, Managing Director and Chief Executive Officer of IGIL, said lab-grown diamonds had started witnessing higher adoption, while natural diamonds and gemstones continued to represent important growth opportunities.

The management also highlighted the company's global footprint, diversified certification portfolio and ongoing investments in technology, brand development and customer engagement.

These factors could support the company's ability to serve a broad customer base and respond to changes in the global diamond and jewellery market.

However, the long-term outlook will depend on the company's ability to maintain service quality, strengthen customer relationships and sustain demand across different product categories. The pace of adoption of lab-grown diamonds and developments in the natural diamond market will also influence the broader industry environment.

Technical Outlook: ₹345 Support, ₹369–₹393 Upside Levels

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said IGIL had registered a convincing breakout supported by strong trading volumes, indicating renewed buying interest.

According to his assessment, the stock could retain a positive bias as long as it remains above ₹345. The identified upside levels are ₹369, followed by a broader zone of ₹385–₹393.

On the downside, Shah indicated that a close below ₹325 would invalidate the bullish technical setup and warrant caution.

These levels represent the analyst's technical assessment, not guaranteed price targets. Following a sharp rally and an upper-circuit move, investors should also consider volatility, liquidity and the possibility of profit-booking.

Key Factors Investors Should Monitor

Investors tracking IGIL may focus on the following developments in the coming quarters:

• Revenue growth: Whether the company can maintain strong demand across lab-grown diamonds, natural diamonds and gemstones.

• Operating margins: Whether the EBITDA margin remains close to or above the latest reported 61.4%.

• Lab-grown diamond adoption: How demand for lab-grown diamond certification evolves as the market develops.

• Natural diamond demand: Whether the natural diamond and jewellery categories continue contributing to growth.

• International business: The company's ability to leverage its global presence and diversified customer base.

• Technology investments: Whether improvements in technology and customer engagement support business expansion and operating efficiency.

Monitoring these factors can help investors distinguish between short-term momentum following strong results and the company's longer-term earnings potential.

Market Outlook

IGIL's Q2 FY27 performance was supported by a 31% increase in revenue, 39% growth in EBITDA and a 43% rise in consolidated net profit. The expansion in EBITDA margin to 61.4% further strengthened the quarterly earnings picture.

The company's growth across lab-grown diamonds, natural diamonds and coloured gemstones provides evidence of demand across multiple certification categories. Its first-half results also indicate that the positive performance extended beyond the September quarter.

The immediate market response was strong, with the stock hitting its 10% upper circuit at ₹353.20. From a technical perspective, SBI Securities identified ₹345 as an important level for maintaining a positive bias, with potential upside levels at ₹369 and ₹385–₹393, while a close below ₹325 would weaken the setup.

Nevertheless, investors should avoid interpreting a strong earnings announcement or upper-circuit move as an assurance of future returns. The sustainability of revenue growth, margin performance, valuations and broader market conditions will be important in determining the stock's next direction.