# 1. Financial Performance ## A. Key Figures * Revenue: ₹7,773.4 Mn 9M consolidated (+30%) · 18% Q3 growth * EBITDA: ₹90.8 Cr Q3 (+28.2%) · 26.7% margin · ₹185.3 Cr 9M (+32.7%) · 23.8% margin * PAT: ₹684M (₹68.4 Cr) Q3 (+37%) · ₹1333.6M (₹133.36 Cr) 9M (+42%) * Cash & Investments: ₹504.13 Cr (as of Dec 31, 2025) * **Dividend:** **₹2.75/share** interim dividend (137.50% on ₹2 face value) ## B. Revenue Growth * **Strong Volume-Driven Expansion:** Double-digit revenue growth supported by **7–8% volume increase** in jewelry units, reflecting sustained demand and production scalability. * **Pricing Dynamics:** Reported price increase in lab-grown segment driven by **higher average caratage**, not broad pricing power, indicating product mix shift. * **Growth Contextualized:** Q3 growth moderation versus prior +30–40% reflects **high base effect**, not weakening fundamentals, preserving confidence in underlying momentum. ## C. Profit Margins * **Earnings Outperformance Despite Margin Pressure:** PAT surged 37% in Q3 on strong other income and tax efficiency, even as EBITDA margin dipped to 7%, down from 8% in 9M average. * **Origem Drag:** Subsidiary **Origem posted ~₹5 Cr loss** in Q3, weighing on consolidated profitability. * **Gross Margin Resilience:** Current gross margins **slightly above 40%**, with management guiding for stable **38–42% range** amid cost discipline. ## D. Balance Sheet & Cash Flow * **Capital Returns Initiated:** Company declares **first-ever interim dividend** of ₹75/share, signaling confidence in cash flow generation and capital discipline. * **Other Income Tailwinds:** Sharp rise in other income fueled by **currency depreciation (dollar-rupee)** and **risk-free returns from QIP proceeds**, enhancing bottom-line growth. --- # 2. Order Book & Demand ## A. Key Figures * **Order Book:** **₹1,800 million** (as of Dec 31, 2025) including **₹800 million** in new export orders for studded lab-grown diamond jewelry * **Unit Volume Growth:** **7%** in Q3, driven by higher caratage diamonds ## B. Demand Dynamics & Market Position * **Strong Global Demand:** Surging appetite for lab-grown diamond jewelry across the **USA, Middle East, Australia, and India**, underpinning price stability and selective price increases. * **Premium Product Mix:** Disproportionate revenue growth in Q3 despite modest unit expansion, driven by seasonal demand for **2 to 5 carat diamonds**, indicating favorable shift toward high-value items. * **B2B Tailwinds:** Rising international demand for **18-carat gold** and high-quality natural and lab-grown diamond jewelry supports continued B2B momentum. ## C. Sales Strategy & Channel Expansion * **Consignment Model as USP:** Capital and inventory support to retailers enables co-marketing, strengthens partnerships, and drives **incremental revenue** with scalable economics. * **Core U.S. Direct Channel:** Sales to major U.S. retailers via **Goldiam USA Inc.** form the high-volume backbone of the business, with structured terms and growing wallet share at the **largest U.S. jewelry retailer**. * **Pipeline Expansion:** Active pursuit of **new major U.S. retail accounts** and entry into **Middle East, Europe, and Australia** supports management’s confidence in **doubling B2B business in 3–5 years**. --- # 3. Segment & Geography Mix ## A. Key Figures * Online Revenue: 31.6% of total revenue (Q3) * **B. S. Business Mix:** **90%** lab-grown diamond jewelry * **Client Wallet Share:** **~2%** with largest U.S. client (up from 1–5% last year) ## B. U.S. Export Business * **Digital Channel Gains Traction:** Online revenue now represents a meaningful share of total sales, signaling improved e-commerce performance. * **Lab-Grown Dominance Confirmed:** Overwhelming U.S. demand for lab-grown diamond jewelry persists, with major retailers validating consumer preference even in premium segments. * **Dual Casting Preserves Margin Advantage:** Despite trade disruptions, the U.S.-India hybrid production model remains intact, enabling **"Made in America"** labeling and **zero tariff** benefits. * **Geographic Diversification Underway:** B2B export growth fueled by expanded retailer relationships in the U.S. and entry into **Europe, Middle East, Israel, and Australia**. ## C. India B2C Expansion * **Strategic Store Rollout:** Origem extends beyond Mumbai, targeting high-visibility locations near competitors to capitalize on pricing differentiation and brand strength. * **B2C Potential Recognized:** Management sees strong long-term synergy between lab-grown diamond jewelry and India’s everyday fine jewelry consumption trends. ## D. New Markets * **International Expansion Accelerating:** Sales footprint now actively growing across **Israel, Australia, Middle East, and Europe**, reducing reliance on U.S. market. --- # 4. Product & Brand Performance ## A. Key Figures * **Origem Store Inventory:** **₹2.7–2.8 Cr** per store (aggressive level) · **₹40–45 Lakh** annual sales target for mature stores * Lab-Grown Exports: **90.5%** of total exports (Q3 FY26) vs. **80%** (Q3 FY25) ## B. Origem Store Metrics * **Premium Positioning:** Focus on high-ASP bridal and fashion jewelry with luxury-grade finishing, supported by advanced manufacturing and design expertise. * **Store Economics:** Mature stores targeted for strong inventory turnover and profitability, underpinned by **ready-to-sell inventory model** in premium locations. * **Sales & Marketing Strategy:** Digital-first, pin code-targeted campaigns complemented by local DTL activations to drive awareness and trial in new markets. * **Operational Model:** Job work manufacturing ensures cost and quality control; U.S. labeling transition fully resolved post-implementation delays. ## C. Lab-Grown Jewelry Mix * **Strategic Repositioning:** Sharp decline in lab-grown export mix reflects deliberate shift away from commoditized volume toward selective, value-added offerings. * **Full-Stack Expansion:** Dual-tier product rollout planned—**9KT fashion line** for entry-level segment and **VVS/EF premium collections** for bridal—with lifetime exchange to reinforce trust. ## D. Design Differentiation --- # 5. Cost & Pricing Trends ## A. Key Figures * **Import Duty on Loose Gems (US):** **0%** (effective immediately) * **US Jewelry Import Tariff:** Reduced from **50% to 18%**, **Goldiam exempt** due to US casting (0% effective rate) ## B. Input Cost Pressures * **Structural Cost Advantage:** Origem benefits from **in-house diamond sourcing/growth** via Goldiam’s export procurement team, avoiding third-party suppliers and securing lower cost of goods. * **Mixed Cost Drivers:** Lab-grown diamond production costs have declined due to **technology-driven output scaling**, but **rising labor costs for cutting/polishing** are now pressuring prices, especially for small stones. * **Tariff-Driven Margin Support:** US-India tariff reduction to 18% improved sentiment and delivered **modest margin expansion**, though dual casting maintains a lower effective cost structure. ## C. Price Stability * **Market Stabilization:** Lab-grown diamond prices have reversed prior declines, showing **stability or double-digit percentage increases** over the past 3–4 months, signaling reduced inventory risk and a maturing market. * **Pricing Power vs. Positioning:** Despite strong cost advantages and potential for higher margins, Origem maintains **competitive pricing** to align with customer expectations versus peers like Aukera or Limelight. * **Labor-Driven Price Floor:** Current price stability is underpinned by **labor-intensive finishing processes**, which now constitute a major portion of total cost, limiting further downside. ## D. Margin Guidance * **Growth with Discipline:** Company targets **sustained margin health and efficient working capital** while scaling B2B exports (US and global) and accelerating nascent B2C operations. --- # 6. Risks & Market Competition ## A. Key Figures * **beYon Price Range:** **₹22,000–28,000** per carat * Origem Price Range: ₹22,000–28,000 per carat * **VC-Funded Brand Pricing:** **₹65,000–80,000** per carat (VVS quality) * **Goldiam U.S. Market Share:** **25%–30%** in bridal at select department stores · **<2%** at largest U.S. jewelry retailer * **Vendor Count:** Largest U.S. retailer uses **>40 vendors** · Smaller national brands use **5–15 vendors** ## B. New Entrant Threat * **Direct Competition Emerges:** Titan’s entry via beYon creates price-based pressure in the Indian lab-grown diamond market, though Origem maintains confidence in its **multi-tiered product strategy** and **differentiated value proposition**. * **Structural Advantage:** Onboarding of **retail-experienced professionals** from major jewelers provides operational edge and reduces execution risk against new entrants. * **Consolidation Trend:** Despite fragmented vendor landscape, top suppliers are gaining share post-COVID, suggesting long-term **barriers to scale for small players**. ## C. Pricing Pressure * **Divergent Business Models:** beYon’s lower pricing is enabled by **in-house certification, no buyback policy, and lower diamond quality**, contrasting with Origem’s trust-centric approach. * **Market Segmentation Evident:** Coexistence of low-, mid-, and high-priced brands (including VC-funded players) reflects a **highly segmented demand landscape** across quality and service tiers. ## D. Consumer Shifts * **Channel Strategy Discipline:** Goldiam avoids direct sales to independent jewelers due to **service complexity and credit risk**, instead leveraging bulk-focused wholesale distributors in the U.S. * **Growth Context:** Lab-grown diamond adoption has historically come at the **expense of natural diamonds**, indicating substitution dynamics rather than pure market expansion. * **Macroeconomic Tailwinds:** Strengthened U.S.-India ties and rising political confidence are **bolstering customer trust** and supporting long-term demand stability. * **Pricing as Moat:** Management views **right-pricing**—balancing value and quality—as a sustainable competitive lever, especially in expansion markets across South and North India. --- # 7. Guidance & Outlook ## A. Key Figures * **Store Count:** **13** operational Origem stores · **20** LOIs signed for new stores * **Store Expansion Target:** **15** new stores planned in H1 FY27 * Per-Store Investment: ₹1 Cr infrastructure cost · ₹3.7–3.8 Cr total all-in investment (incl. inventory) ## B. Revenue Growth View * **Positive Growth Trajectory:** Strong QoQ and YoY revenue growth expected across both B2B and B2C segments, supported by robust demand and **20%-25% annualized growth from dot-com channels**. * **Market Expansion Mindset:** Management welcomes competition, viewing it as a catalyst to expand the nascent Indian lab-grown diamond market. ## C. Store Expansion Plan * **Aggressive Domestic Rollout:** Origem is scaling rapidly with 15 new stores targeted in H1 FY27, aiming to **double store fleet within 5 months while maintaining fleet-level breakeven**. * **International Growth Momentum:** Expanding retail presence and partnerships in the U.S., Israel, and Middle East, with strong growth anticipated in FY26–27. * **Franchise Strategy on Hold:** Franchising evaluation set for end of calendar year, contingent on stabilization of operations and rollout of **gold exchange and payment schemes**. * **Digital-First Marketing:** Marketing strategy will remain primarily digital to support scalable, nationwide store expansion. ## D. Profitability Targets * **Breakeven Fleet Performance:** Current store fleet at breakeven, with older stores becoming more profitable and newer units showing improving trends. * **Record FY Ahead:** Management expresses confidence in delivering a record year for **revenue, EBITDA, and PAT**, underpinned by execution momentum.