International Gemological Institute Q2 FY27 Results Analysis: PAT Jumps 43%, EBITDA Margin Expands 343 bps (IGIL)

International Gemological Institute Limited reported Q2 FY27 numbers with revenue of Rs. 398.02 Cr (+31.04% YoY) and PAT growth of +43.18% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

IGIL grew revenue 31.04% YoY to Rs.398.02 Cr with EBITDA margin up 343 bps to 61.43% and PAT up 43.18% to Rs.185.84 Cr, placing H1 growth of 27.15% (revenue) and 33.92% (EBITDA) ahead of management's 15% and 20% FY27 guidance. The USD 13.2 Mn AGL acquisition turned subsidiary PAT from −Rs.9.33 Cr to +Rs.16.12 Cr YoY as outside-India revenue rose 49.12%, and H1 CFO of Rs.415.67 Cr (1.18× PAT) with zero borrowings underpins earnings quality. Standalone EBITDA margin of 69.46% remains 338 bps below the prior-year quarter on commission and brand spends but is improving toward the ~70% guide.

Key Investment Insights

Key Positives

• Consolidated revenue grew 31.04% YoY to Rs.398.02 Cr, crossing Rs.398 Cr in a single quarter for the first time; H1 growth of 27.15% is above the 15% FY27 guidance
• EBITDA (excl. other income) grew 38.79% YoY to Rs.244.51 Cr with margin up 343 bps YoY to 61.43%, the highest for any Q2 in the available series
• PAT grew 43.18% YoY to Rs.185.84 Cr with no one-time items; PAT margin of 46.69% versus the 40-45% band guided on the Q1 FY27 call
• Subsidiary PAT contribution swung from −Rs.9.33 Cr in Q2 FY26 to +Rs.16.12 Cr, with outside-India revenue up 49.12% YoY after the USD 13.2 Mn AGL acquisition
• H1 CFO of Rs.415.67 Cr (1.18× PAT) and free cash flow of Rs.367.79 Cr; trade receivables fell 16.75% from March 2026 while revenue grew
• Company is debt-free with cash and bank balances of Rs.560.35 Cr, up 105.43% from March 2026
• H2 FY27 revenue can decline 6.34% versus H2 FY26 and the company would still meet the 15% full-year revenue guidance
• Standalone EBITDA margin improved to 69.46% from 68.85% in Q1, approaching the ~70% guide

Risk Factors

• Standalone EBITDA margin of 69.46% remains 338 bps below Q2 FY26's 72.84%, attributed to inter-geography commission payouts and discretionary brand spends (IPL sponsorship, Women's World Cup advertising)
• Standalone PAT margin declined to 55.54% from 57.79% in Q2 FY26, with standalone PAT growth of 21.99% trailing consolidated PAT growth of 43.18%
• Depreciation and amortisation rose 41.71% YoY, ahead of revenue growth of 31.04%, reflecting the AGL consolidation and continued laboratory build-out