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GJ sector sees 84.39% growth in FDI

India’s foreign direct investment (FDI) inflows have witnessed a remarkable 45.4% surge in the first half of FY24, reaching USD 29 billion.

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Even more dazzling is the performance of the gems and jewellery sector, which saw an 84.39% jump in FDI, signalling renewed investor confidence in this crucial industry.

India recorded a sharp 45.4% increase in overall Foreign Direct Investment (FDI) inflows during April-September 2024, reaching USD 29 billion (INR 2.49 lakh crore), compared to USD 20 billion (INR 1.68 lakh crore) in the same period a year earlier, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).

The gems and jewellery sector also witnessed an impressive surge in FDI inflows, rising by 84.39% to USD 45.7 million (INR 381.67 crore) during April-September 2024, compared to USD 24.8 million (INR 205.29 crore) in the corresponding period in 2023. This marks a significant recovery in investment inflows into the sector, which had seen a fluctuating trend in recent years.

According to DPIIT data, total FDI equity inflows into India have been on an upward trajectory, increasing from USD 40 billion in 2015-16 to USD 44.42 billion in 2023-24. The latest data indicates strong investor confidence in India’s economic policies and business environment, despite global uncertainties.

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National News

PNGS Reva Diamond Jewellery Limited Reports Strong Q3 FY26 Performance

Revenue up 40% QoQ to ₹144.18 Crores; PAT surges 82% QoQ to ₹23.11 Crores; Footfall grows 66% quarter-on-quarter

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PNGS Reva Diamond Jewellery Limited (“Reva Diamonds”), a leading diamond jewellery retail company operating under the trusted PNGS Group umbrella, announced its financial performance for Q3 FY26 (October–December 2025) and the nine months ended December 31, 2025.

Amit Modak, Whole Time Director and CEO, addressed the company’s first direct engagement with the investor community following its successful listing. Reva Diamonds was incorporated on December 20, 2024, as a separately carved-out entity from the PNGS Group — a legacy jewellery business with over 193 years of heritage, tracing its origins to Sangli in 1832. The Group separated its corporate structure in 2012, and Reva Diamonds was subsequently created to house and scale its diamond jewellery retail operations independently.

As of the reporting date, the company operates 35 points of sale — 33 stores under the FOCO (Franchisee Owned, Company Operated) model with PNGSL, one store under the FOFO (Franchisee Owned, Franchisee Operated) model, and one Company Owned Company Operated (COCO) store. With IPO proceeds of approximately ₹380 crore raised, the company has charted a clear growth roadmap: ₹287 crore earmarked to establish 15 new exclusive COCO stores over 24 months across two financial years (approximately 9 stores in FY27 and 6 in FY28), and ₹35 crore allocated toward targeted marketing and brand-building to support new store launches and deepen customer awareness. Planned expansion will be concentrated approximately 55–60% within Maharashtra, with the remainder focused on Tier 1 cities in North India, primarily through mall-based locations. Average capex per store is estimated at ₹19–20 crore, with inventory comprising approximately 70% of that investment. New stores within Maharashtra are expected to reach breakeven within 12–18 months, and stores outside Maharashtra within 18–24 months.

Financial Highlights

The jewellery business is inherently seasonal, with H1 contributing approximately 30–35% of annual revenues and H2 accounting for 65–70%, driven by key festive and gifting seasons including Navratri, Diwali, Christmas, and Valentine’s Day. The company also noted that December 2025 numbers are not directly comparable on a YoY basis, given that Reva Diamonds operated for just 12 days as a separate entity during the corresponding prior period. QoQ comparisons, therefore, provide a more meaningful and accurate picture of the business trajectory.

  • Q3 FY26 vs Q2 FY26 (Quarter-on-Quarter):
  • Revenue from Operations: Rs.144.18 Crores (Q2: Rs.102.97 Crores) — growth of 40.03%
  • EBITDA: Rs.33.71 Crores (Q2: Rs.19.32 Crores) — growth of 74.47%
  • PAT: Rs.23.11 Crores (Q2: Rs.12.70 Crores) — growth of 82.01%
  • 9MFY26 (April–December 2025):
  • Revenue from Operations: ₹300.90 Crores
  • EBITDA: Rs.64.90 Crores
  • PAT: Rs.43.23 Crores

In Q3 FY26, the company recorded a 66% increase in footfall over Q2, underscoring strengthening consumer demand. Geographically, 95% of revenue is currently derived from Maharashtra, with the remaining 5% coming from Gujarat and Karnataka — markets that are expected to receive greater attention as the COCO expansion gathers pace.  EBITDA margins have ranged from 19% to 23% across the first three quarters of FY26 (Q1: ~22%, Q2: ~19%, Q3: ~23%), with variability driven by the seasonal nature of the business and the fixed-cost leverage on a growing revenue base. During the 24–30-month expansion phase, margins may dip modestly by 100–300 basis points due to the Ind AS requirement to charge marketing and brand-building expenses directly to the P&L. Absolute profitability, however, is expected to continue growing. Once the COCO stores reach maturity, operating leverage is anticipated to support margin recovery and improvement.  The company also noted that its product mix — over 95% of which is small and melee diamonds used in design-led jewellery — insulates it from the growing pressure from lab-grown diamonds, which primarily affects the solitaire and pointer categories. Reva Diamonds’ offering spans nose pins priced at Rs.10,000 to bridal necklaces priced at Rs.12–15 lakh, catering to a broad consumer spectrum and differentiating itself from fast-fashion diamond retailers.

Management Commentary

Speaking at the earnings call, Amit Modak, Whole Time Director and CEO, said: “Our maiden earnings call is a milestone moment for the Reva Diamonds story — one that marks not just our debut as a listed entity, but our commitment to transparent, consistent dialogue with the investor community. The Q3 numbers reflect the inherent strength of the festive season tailwinds, and we are pleased with the quality of growth we have delivered. A 40% revenue jump and 82% surge in PAT over the previous quarter are encouraging indicators as we continue to scale.

The enthusiastic response to our IPO has given us the capital firepower to pursue our expansion strategy with confidence, and we remain focused on converting that capital into sustainable, profitable growth.”

Aditya Modak

Aditya Modak, Non-Executive Director, PNGS Reva Diamond Jewellery Limited, added: “These results affirm that we have built a business with strong operational discipline and real consumer resonance. A 66% jump in footfall this quarter is not a number we take lightly — it reflects growing brand trust and a deepening connection with our customers across Maharashtra. Our revenue mix of traditional buyers, Gen Z, and working women gives us a diversified demand base that positions us well for the next phase.

As we deploy IPO proceeds into 15 new COCO stores, we are doing so with clarity on unit economics and brand-building. Because scale without profitability is not a trade-off we are willing to make. The opportunity ahead is significant, and we are committed to delivering it responsibly.”

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