Lab-grown diamond demand rising fast in India; Limelight targets ₹500 crore revenue and 200 stores

India’s lab-grown diamond market is seeing faster-than-expected consumer adoption, prompting Limelight Lab Grown Diamonds to accelerate its expansion plans as it targets 200 stores by 2027 and aims to cross ₹500 crore in revenue this financial year.

Speaking to CNBC-TV18, Pooja Madhavan, Founder of Limelight Lab Grown Diamonds, said the company closed FY26 with a top line of ₹265 crore and is now aiming for “north of ₹500 crore” in revenue this year.

The company plans to take its retail footprint to more than 85 stores across the country. Madhavan said demand is coming not only from metros, but increasingly from tier-2 cities as well.

“Metros are where the confidence comes from. Consumers in the metros are building confidence for the category. But tier-2 cities are where we see the consumption, the spending power and the excitement to buy diamonds,” she said.

According to Madhavan, India remains a highly underpenetrated market for diamond jewellery, creating a significant opportunity for the lab-grown segment.

“Less than 4% of Indian women have actually adorned diamonds so far. So we are a market that has been extremely aspirational for diamonds,” she said, adding that lab-grown diamonds are helping consumers buy jewellery “for utility purposes and not for lockers”.

The company, which entered the category as an early mover, is also focusing heavily on consumer education as awareness around lab-grown diamonds continues to evolve.

Madhavan acknowledged that changing consumer perceptions has been challenging because the natural diamond industry has shaped buying behaviour for decades. However, she said digitally aware consumers are increasingly understanding the value proposition of lab-grown diamonds.

“The reality of the situation is that lab-grown diamonds are identical. They’re the same,” she said. “Lab-grown diamonds that are produced in India are actually superior in quality. They’re the best form of diamonds you can ever get.”

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She also dismissed concerns around continued pricing pressure in the segment, saying prices have largely stabilised over the last year.

“Prices have actually stabilised in the lab-grown diamond sector for over a year now. So it’s a myth that has been created by different lobbyists in the industry, but it is not factually correct,” Madhavan said.