Goldiam International - B2B Cash cow, ORIGEM the next growth engine - Company Update

Goldiam International reported a strong Q4FY26 performance, with revenue and earnings ahead of our estimates, driven by healthy traction in its core B2B export business and continued scale-up in lab-grown diamond jewellery. The company continues to strengthen its position as a preferred partner for large global retailers, supported by strong design capabilities, reliable execution, increasing wallet share and a tariff-resilient supply-chain model. Goldiam’s US casting strategy has further enhanced its competitive positioning by ensuring supply continuity for customers and protecting margins in a volatile trade environment. ORIGEM is also scaling up as a credible domestic B2C growth engine, enabling Goldiam to participate directly in India’s fast-emerging branded LGD jewellery opportunity. With a healthy order book, cash-rich balance sheet, rising LGD jewellery contribution, e-commerce upside and rapid ORIGEM expansion, we believe Goldiam is well placed to deliver sustained profitable growth and emerge as one of the strongest listed plays on the global and domestic LGD jewellery opportunity. We continue to hold a positive view on the stock with BUY rating with a TP of Rs 560 (earlier Rs 515) as we revise our earnings estimate upwards.

B2B traction and ORIGEM scale-up drive topline growth

Goldiam International reported robust revenue growth of 18% YoY to Rs 2,346mn (MNCL Est- Rs 2,248mn), largely driven by healthy traction in its core B2B export business. The company continues to gain wallet share with existing US customers, while also benefiting from addition of new clients and increasing acceptance of lab-grown diamond jewellery. B2B growth was further supported by strong execution capabilities, e-commerce traction and the company’s ability to service large-format global retailers despite a volatile tariff environment. ORIGEM also continued to scale up steadily, with revenue of Rs 56mn in Q4FY26 and Rs 170mn in FY26 through its 24-store network, adding a promising domestic B2C growth lever to the overall revenue mix.

US casting strategy drives sharp margin expansion

Goldiam reported strong margin performance in Q4FY26, with gross margin expanding to 39.5% versus 34.7% YoY, aided by the company’s US raw gold casting strategy, which helped mitigate tariff impact and improve value addition. Despite higher gross margins and a 301bps YoY reduction in employee cost, OPM expansion was partly restricted by a 488bps YoY increase in other expenses, which we believe was largely driven by ORIGEM-led store expansion and related brand-building investments. Consequently, OPM expanded by 286bps YoY to 21.1%. EBITDA grew 36.6% YoY to Rs 495mn (MNCL Est- Rs 394mn), supported by higher revenue and improved gross profit, while PAT grew 60.6% YoY to Rs 372mn (MNCL Est- Rs 318mn), aided by better operating performance and higher other income.

Outlook

B2B cash cow; ORIGEM emerging as the next growth engine- Goldiam remains well placed to deliver sustained profitable growth, with its B2B export business now firmly established as a steady cash-generating franchise. The company continues to strengthen its positioning with large US retailers, supported by strong design capabilities, reliable execution, increasing wallet share, e-commerce traction and a tariff-resilient supply-chain model. We believe the US casting strategy has structurally improved Goldiam’s competitive positioning by ensuring supply continuity for customers while protecting margins in a volatile trade environment. While the B2B business should continue to remain the core cash cow.

ORIGEM is emerging as a promising B2C growth engine, with rapid store expansion, improving monthly run-rate and strong positioning in India’s nascent branded LGD jewellery market. Given Goldiam’s strong balance sheet, proven design/manufacturing capabilities, premium retail access and healthy order book, we believe the company is well positioned to build ORIGEM into a meaningful value-accretive business over the medium term, while continuing to generate healthy cash flows from its established export franchise.

Valuation, view and Risk:

Q4FY26 operating performance was ahead of our estimates, driven by strong traction in the B2B export business, sharp margin expansion led by the US casting strategy and steady scale-up in ORIGEM. Accordingly, we revise our earnings estimates upward by 4.0%/3.7% for FY27E/FY28E, respectively, given a better margin outlook. We now factor in Revenue/EBITDA/Adj. PAT CAGR of 26.6%/14.8%/11.2% over FY26–28E. While the B2B export business remains a steady cash-generating franchise, ORIGEM is emerging as a credible B2C growth engine, supported by rapid store expansion, improving store-level traction and rising consumer acceptance of lab-grown diamond jewellery in India. We value the stock at 30x FY28E EPS, arriving at a revised target price of Rs 560 (earlier Rs 515). Key risks include slower-than-expected growth in the US LGD jewellery market, adverse trade policy changes, slower ramp-up in ORIGEM stores and heightened competitive intensity in the domestic B2C LGD jewellery segment.

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)

Here are quick answers to common investor questions on the Goldiam International investment opportunity, including levels, outlook and risk factors.

1. What drove Goldiam International's strong Q4FY26 performance?

Growth was driven by strong traction in the B2B export business, increasing wallet share from global retailers, rising demand for lab-grown diamond jewellery, and steady expansion of the ORIGEM retail network.

2. What is ORIGEM and why is it important?

ORIGEM is Goldiam's branded lab-grown diamond jewellery retail business. It provides direct exposure to India's growing B2C jewellery market and represents a significant long-term growth opportunity.

3. How did the US casting strategy benefit Goldiam?

The US casting strategy improved supply chain resilience, reduced tariff-related challenges, enhanced value addition, and contributed to meaningful gross margin expansion during FY26.

4. What are the key growth drivers for Goldiam International?

Key growth drivers include expanding lab-grown diamond adoption, increasing exports, deeper relationships with global retailers, e-commerce growth, and rapid ORIGEM store expansion.

5. What are the major risks for the company?

Key risks include slower growth in the global lab-grown diamond market, changing trade policies, increased competition, and slower-than-expected scaling of the ORIGEM retail business.

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