India’s Sparkling Shift to Lab-Grown Diamonds

Introduction

India’s diamond dominance is entering a new era. With rising demand and innovation, lab grown diamond stocks are now shining as the next frontier for investors.

Already the world’s largest exporter of cut and polished diamonds, India accounts for about 75% of global turnover by value. Now, it’s expanding that legacy into the fast-growing lab-grown diamond (LGD) sector—a market expected to soar from $264.5 million in 2022 to $1.19 billion by 2033, growing at a CAGR of 14.8%.

Globally, lab-grown diamonds are gaining ground fast, with the market projected to reach $74.45 billion by 2032, driven by demand for ethical, sustainable, and cost-effective luxury alternatives. And India isn’t sitting on the sidelines. The country now holds a 25% share in global lab-grown diamond production, making it a powerhouse in both manufacturing and innovation.

As this high-tech gem revolution gathers steam, savvy investors are turning their attention to a new opportunity: lab grown diamond stocks. From jewellery giants to certification specialists and retail newcomers, several Indian companies are aligning themselves with this shift—and their stock performance could reflect it.

In this blog, we explore what makes lab-grown diamonds different, why the market is booming, and which lab grown diamond stocks are worth watching for long-term gains.

Understanding Lab-Grown Diamonds: What They Are and Why They Matter

Lab-grown diamonds (LGDs) are not imitations or synthetic lookalikes—they are real diamonds, created in controlled laboratory conditions that replicate the natural diamond formation process beneath the earth’s surface.

There are two main technologies used to create them:

• High Pressure, High Temperature (HPHT): Mimics the intense heat and pressure found deep underground.
• Chemical Vapor Deposition (CVD): Uses a gas mixture to deposit carbon atoms onto a diamond seed, gradually forming a crystal.

The result? Diamonds that are chemically, physically, and optically identical to mined diamonds—but come at a fraction of the cost, and with significantly lower environmental impact.

In fact, lab-grown diamonds can be up to 90% more affordable than their natural counterparts, making them a popular choice for younger, sustainability-conscious consumers. These diamonds also eliminate the ethical issues tied to traditional mining—no environmental degradation, no exploitative labor, and no blood diamond concerns.

This growing demand for sustainable luxury is redefining global consumption patterns—and India is at the center of this transformation.

The rising popularity of lab-grown diamonds has also opened up exciting avenues for investment, especially in lab grown diamond stocks tied to production, retail, certification, and export.

India’s Rise in the Global Lab-Grown Diamond Ecosystem

India isn’t just participating in the lab-grown diamond boom—it’s leading it. The country has rapidly evolved from being a diamond polishing powerhouse to a central figure in lab-grown diamond production, innovation, and export.

India is currently the world’s largest exporter of cut and polished diamonds, contributing around 75% of global turnover by value. While traditionally focused on natural diamonds, the industry is now pivoting to lab-grown alternatives as demand surges globally.

In terms of production share, India holds a commanding 25% of the global lab-grown diamond output, thanks to technological advancements and expanding infrastructure. Key production hubs like Surat and Mumbai account for over 98% of India’s lab-grown diamond manufacturing, underscoring the country’s dominance.

Market Size and Growth Outlook

• In 2022, the Indian lab-grown diamond jewelry market was valued at $264.5 million.
• By 2023, this figure grew to $500 million, showing early momentum.
• The market is projected to reach $1.19 billion by 2033, growing at a compound annual growth rate (CAGR) of 14.8%, according to iNDEXTb.

The global lab-grown diamond market, meanwhile, was worth $22.79 billion in 2023 and is expected to hit $74.45 billion by 2032, with a CAGR of 14.11%. India plays a vital dual role here—as both a top producer and a fast-growing consumer.

This makes the country a hotspot not just for jewellery buyers, but also for investors tracking lab grown diamond stocks that benefit from both domestic consumption and global export growth.

Key Drivers Powering the Boom

Several factors are driving the exponential growth in this segment:

1. Consumer Shifts Toward Sustainability and Affordability

Modern consumers—especially millennials and Gen Z—prefer sustainable luxury. Lab-grown diamonds are real, ethical, and significantly cheaper—making them a compelling choice over mined diamonds.

2. Technological Advancements

With continuous improvements in HPHT and CVD methods, the production quality and scalability of lab-grown diamonds are better than ever. These advancements also lower manufacturing costs, improving margins for companies in the value chain.

3. Retail Expansion and Branding

Brands like Titan (via Clean Origin), Trent (with Pome), and Senco Gold (via Sennes) are now aggressively promoting LGD collections. This brand-backed push into retail is accelerating mainstream acceptance and driving volume growth—critical triggers for lab grown diamond stocks.

4. Government Support and R&D Push

In a landmark initiative, the Indian government allocated ₹2.4 billion to establish the India Centre for Lab Grown Diamond at IIT Madras. This move supports deep research and technology development, strengthening the domestic supply chain.

5. Export Opportunities and Global Reach

India accounted for 28.6% of global lab-grown diamond exports in 2023, showcasing its growing footprint. With stable pricing now returning post-2024’s correction, exporters are poised for consistent earnings.

Top Lab Grown Diamond Stocks in India: Who’s Benefiting?

As lab-grown diamonds become a mainstream luxury choice and an industrial necessity, several Indian-listed companies are emerging as early beneficiaries. These players operate across the retail, certification, manufacturing, and export segments—making them exciting options for investors interested in lab grown diamond stocks.

Here’s a look at the key companies tapping into this booming trend:

1. Titan Company Ltd

Segment: Retail | Brand: Tanishq, Zoya, and Clean Origin
Market Cap: ₹3.4 lakh crore (approx.)

Titan, a Tata Group company, has launched lab-grown diamond collections under its premium brands. Its US joint venture with Clean Origin is particularly important—it taps into the largest global LGD market with a strong ethical and value-for-money narrative.

Why it matters:
Titan is leveraging its massive retail presence and brand trust to popularize LGDs. With a strong balance sheet and brand recall, it’s a proxy play for LGD jewelry growth globally and in India.

2. Trent Ltd

Segment: Retail | Brand: Pome
Market Cap: ₹1.4 lakh crore (approx.)

Part of the Tata Group, Trent has quietly entered the LGD jewelry space with Pome, an in-house sustainable brand. With Zara, Westside, and other lifestyle stores under its belt, Trent has deep penetration among India’s urban young consumers.

Why it matters:
Its early entry into sustainable fashion and jewelry makes Trent a strategic player in the aspirational consumer segment—aligning perfectly with the LGD trend.

3. Senco Gold Ltd

Segment: Retail & Manufacturing | Brand: Everlite Lab-Grown Diamond Jewelry
Market Cap: ₹3,200 crore (approx.)

Senco Gold has launched “Everlite”, a dedicated LGD jewelry line targeting budget and mid-tier buyers. The company is aggressively expanding its store footprint in Tier I and II cities.

Why it matters:
Senco is combining affordability with aggressive expansion—a high-growth recipe. Being a pure-play listed jewelry brand, it offers direct exposure to India’s rising LGD demand.

4. International Gemological Institute (IGI Certification) [Indirect Exposure]

Segment: Diamond Grading and Certification
Note: Not listed directly in India

IGI is a global certifying authority that has seen a sharp rise in lab-grown diamond certification demand, especially in India. While it’s not directly investable via Indian markets, companies that use or partner with IGI (like Titan and Senco) gain trust and brand equity—boosting retail confidence.

These companies—while different in scale and focus—all offer a gateway into the lab-grown diamond boom. As global and Indian markets mature, lab grown diamond stocks could mirror the kind of long-term compounding we’ve seen in sectors like IT, specialty chemicals, and EVs.

5. Goldiam International Ltd (NSE: GOLDIAM)

Segment: Manufacturing & Export
Market Cap: ₹3,800 – ₹4,100 crore (small-cap)

Goldiam has become a front-runner in the LGD jewelry export space, especially in the US. In Q1 FY25, lab-grown diamond jewelry made up 68% of its total sales, up from just 33% in Q1 FY24. For the full FY24, LGDs contributed nearly half of Goldiam’s revenue—a massive shift in product mix.

It also made its retail debut in India by launching its first LGD store under the brand Origem in Mumbai in late 2024.

Why it matters:
With stellar financial performance (PAT up 54% YoY in Q3 FY25) and an export-heavy model, Goldiam is one of the most direct and aggressive plays on lab grown diamond stocks from India.

6. Sky Gold and Diamonds Ltd

Segment: Jewelry Manufacturing & Export
Market Cap: ₹4,500 – ₹5,600 crore (small-cap)

Although better known for gold craftsmanship, Sky Gold has increasingly embraced the diamond segment, including LGDs. It’s frequently featured in the top-performing jewelry and diamond stock lists.

Financially, it posted an eye-popping net profit jump to ₹36.54 crore in Q3 FY24 from ₹8.93 crore YoY, while maintaining a solid 5-year CAGR of nearly 100%.

Why it matters:
Sky Gold’s adaptability and impressive growth suggest it’s seizing the LGD momentum—especially in export markets and modern retail formats.

7. Dev Labtech Venture Ltd

Segment: LGD Manufacturing
Market Cap: ₹73 – ₹76 crore (micro-cap)

A true seed-to-finish LGD manufacturer, Dev Labtech is deeply involved in the end-to-end lab-grown diamond value chain. From cutting to clarity grading, it exports almost its entire production—92% in FY23, largely to US buyers.

With a growing order book (USD 1.1 million from US and ₹1 crore from Indian clients), it’s one of the rare pure-play LGD micro-cap stocks in India.

Why it matters:
Though small, Dev Labtech offers unmatched depth in LGD manufacturing and a high-margin export-driven model—making it a bold but focused pick.

8. Mini Diamonds (India) Ltd

Segment: Manufacturing, Retail & Export
Market Cap: ₹72 – ₹474 crore (micro-cap)

Mini Diamonds is explicitly focused on lab-grown diamond jewelry for B2B and B2C markets. With expansion into Dubai and Canada and the launch of its own LGD designer store in Mumbai, the company is chasing both domestic and global growth.

Its Q1 FY25 results showed explosive growth: net profit soared to ₹1.84 crore from ₹0.14 crore YoY, and revenues surged nearly 4x.

Why it matters:
A rare Indian micro-cap stock fully committed to LGDs, Mini Diamonds is an aggressive, dedicated player showing real momentum across both product and geography.

Risks and Investment Considerations Before Buying Lab-Grown Diamond Stocks

While the lab grown diamond stocks space looks glittering with opportunity, investors must assess the hidden cracks before jumping in. Like any emerging theme, this sector comes with a mix of high-growth potential and sector-specific risks.

1. Global Price Pressure

The lab-grown diamond industry is inherently technology-driven, and prices tend to fall as production scales. In the past five years, the price of LGDs has dropped nearly 60–80%, especially in Western markets. Companies may face margin pressure unless they can continuously innovate or move up the value chain (e.g., branded jewelry).

Investor insight: Look for players with strong branding, retail presence, or export strength—these can shield margins better than pure manufacturers.

2. Commoditization Risk

Unlike natural diamonds with rarity, lab-grown diamonds are replicable, which creates commoditization risk. Many players offer similar products, and differentiation is hard unless companies have design IP, retail channels, or exclusive partnerships.

Investor insight: Prefer businesses with established B2C channels or unique product offerings like designer LGD jewelry or customization options.

3. Regulatory and Certification Concerns

The lack of uniform global standards for lab-grown diamonds can affect customer trust, particularly in international markets. Changes in regulations or import duties (especially in major markets like the U.S.) can impact earnings for export-heavy companies.

Investor insight: Evaluate how companies manage certifications and how diversified their customer base is across geographies.

4. High Volatility in Micro-Caps

Several lab-grown diamond stocks are small-cap or micro-cap in nature. These stocks can be highly volatile, illiquid, and subject to sharp price swings based on news, quarterly results, or investor sentiment.

Investor insight: Allocate capital wisely. Don’t go all-in on a single name; diversify across the value chain and consider company fundamentals like debt levels and cash flows.

5. Competition from Natural Diamonds and Hybrids

The traditional diamond industry, backed by major mining giants, isn’t sitting idle. Many are launching hybrid strategies—offering both natural and lab-grown options to consumers. Also, emotional value associated with natural diamonds still influences many purchase decisions.

Investor insight: Lab-grown will likely coexist with natural diamonds—but players that blend aspirational marketing with affordability will stand out.

Conclusion: India’s Lab-Grown Diamond Industry is a Sparkling Investment Theme

India isn’t just the world’s largest exporter of polished diamonds—it’s also rapidly becoming the epicenter of lab-grown diamond innovation and exports. With strong export figures, rising domestic retail interest, and policy tailwinds, the ecosystem is drawing serious investor attention.

As sustainability becomes a global standard, lab grown diamond stocks offer a glittering opportunity for investors looking to ride both ethical and economic growth waves.

Short-Term View: Demand-Driven Momentum

In the near term, several catalysts are driving positive sentiment in lab grown diamond stocks:

• Rising exports to the U.S. and other developed markets.
• Impressive YoY revenue and profit growth across several small-cap companies.
• Strong retail entry by players like Goldiam and Mini Diamonds.

Investors looking for momentum trades and quarterly earnings triggers may find value in this space.

Long-Term View: Structural Growth, Ethical Edge

From a long-term perspective, the appeal of lab grown diamond stocks rests on:

• The global transition to sustainable luxury and ethical sourcing.
• India’s 25% share in global LGD production and growing dominance in exports.
• Increasing consumer acceptance, particularly among millennials and Gen Z.

With high-growth potential and improving margins, long-term investors may consider this a promising emerging theme.

Lab-grown diamonds aren’t just transforming jewelry—they’re changing the investment landscape.
Open your Demat account with Angel One today, and get access to trending small-cap opportunities before they shine too bright.

FAQs

What are lab grown diamond stocks?

Lab grown diamond stocks refer to shares of companies involved in the production, processing, or sale of lab-created diamonds. These include firms engaged in manufacturing, retail, or export of lab-grown diamond (LGD) jewelry.

Why is India important in the lab grown diamond industry?

India holds a 25% global market share in lab-grown diamond production and is the world’s largest exporter of cut and polished diamonds, accounting for about 75% of global turnover by value.

Which small-cap companies are active in the lab grown diamond sector?

Some notable small-cap players include Goldiam International, Sky Gold and Diamonds, Dev Labtech Venture, and Mini Diamonds India Ltd. They have shown strong revenue growth and expanding LGD exports.

Is investing in lab grown diamond stocks risky?

Like all emerging sectors, investing in lab grown diamond stocks involves market risks. Many of these companies are small-caps or micro-caps, so due diligence is essential before investing.

How are lab grown diamonds different from natural ones?

Lab grown diamonds are created in controlled environments using advanced technology. They are chemically and physically identical to natural diamonds but are produced faster and at a lower cost.

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