Goldiam International - LGD Momentum builds; ORIGEM scaling | Company Update

We reiterate our BUY rating on Goldiam International with a target price of Rs. Rs.470. Despite near-term uncertainty around U.S. tariff implications, the company has delivered an exemplary performance driven by robust topline growth and increasing wallet share from existing clients, while successfully onboarding new ones in its key U.S. market. Although margins were temporarily impacted due to tariff-led customer support, Goldiam swiftly implemented a U.S.-origin casting model—casting raw gold in the U.S. and completing polishing and diamond setting in India—to establish a U.S. Product of Origin, thereby significantly mitigating tariff exposure and ensuring compliance while supporting U.S. employment. On the domestic front, its B2C brand ‘ORIGEM’ continues to scale rapidly, with 11 operational stores and 15–18 new locations identified across North and South India, targeting 20–25 stores by March 2026. Backed by a strong balance sheet (cash reserves of Rs. 4.6bn) after the recently concluded fundraise, Goldiam is well-positioned to capitalize on its expanding B2B order book, growing consumer acceptance of lab-grown diamond jewellery, and the emerging domestic retail opportunity—creating a diversified and resilient growth engine for the medium term.

Robust revenue growth:

Goldiam delivered a strong 41% YoY revenue growth to Rs.1,928mn, driven by sustained momentum in LGD jewellery. LGD exports now contribute ~90% of sales vs. 77% YoY, reflecting deeper wallet share gains with key U.S. retailers and healthy addition of new clients. On the B2C front, under its ORIGEM brand, the company generated Rs.28mn in sales during the quarter, supported by 11 operational stores, signalling a promising scale-up in the domestic retail initiate.

Margins impacted but well managed:

Gross margins moderated to 33.3% (vs 42.5% YoY) as the company extended short-term support to customers during the tariff transition; however, disciplined cost control, including an 18% YoY reduction in other expenses, limited the impact, resulting in only a 241bps YoY dip in EBITDA margin to 19.9%. EBITDA grew 25.6% YoY to Rs.383mn (-6.9% QoQ), while PAT stood at Rs.314mn (+41.7% YoY, -6.7% QoQ).

ORIGEM update

The company has now scaled ORIGEM to 11 operational stores, with clear visibility to open an additional 15–18 stores by March 2026. Post the recent fundraise, Goldiam also has capital in place to expand to ~55 COCO stores, providing strong medium-term visibility on its retail rollout. In our estimates, ORIGEM is set to become a meaningful growth driver, contributing ~13%/19% for FY27e/FY28E. We also factor in a near-term margin dip due to the COCO-led expansion strategy and higher brand-building spends. Over the medium term, however, ORIGEM is well-positioned to emerge as a leading pan-India LGD retail brand, with presence across West, North and South India, supported by a structurally integrated business model.

Valuation, view and risk:

Goldiam offers an attractive risk–reward profile backed by strong export momentum, rising LGD penetration, and early traction in its B2C venture, ORIGEM. The company’s robust balance sheet (net cash Rs. 4.6bn) provides ample capacity to fund COCO store expansion and support long-term growth. With improving diversification across B2B and B2C and strong order visibility, we reiterate our BUY rating with a Target Price of Rs.470 valuing the stock at 30x Q2FY28E eps of Rs.15.7. Key Risk- Slowdown in store expansion, uncertainty in key export markets.

Company website: https://www.goldiam.com/

*CMP is as per report published date

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Analyst:

• Rahul Dani - Research Analyst, Institutional Equities (NISM-201500034725)
• Vaidik Bafna- Research Associate, Institutional Equities (NISM-202100035711)

Frequently Asked Questions (FAQ)

Goldiam International is gaining investor attention due to rising LGD exports, resilient earnings execution, and rapid scaling of its ORIGEM retail platform. Below are key questions investors are asking.

Why is Goldiam International considered attractive at current levels?

The company is delivering strong revenue growth driven by LGD jewellery exports, improving wallet share with US clients, and early traction in its domestic B2C retail initiative, ORIGEM.

How has Goldiam addressed US tariff-related risks?

Goldiam implemented a US-origin casting model, allowing products to qualify as US-origin, significantly reducing tariff exposure while maintaining compliance and customer relationships.

What is the growth potential of the ORIGEM brand?

ORIGEM has scaled to 11 stores with visibility to reach 20–25 stores by March 2026. Over the medium term, it is expected to become a meaningful contributor to revenue and brand-led growth.

How strong is Goldiam’s balance sheet?

Goldiam maintains a robust net cash position of approximately Rs.4.6bn, giving it ample flexibility to fund retail expansion, absorb near-term margin pressure, and pursue long-term growth opportunities.

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