Sarine Technologies has demonstrated resilience in the face of persistent market turbulence, reporting revenues of US $15.3 million for the first half of FY2025. While this figure marks an 11% drop compared to the previous half-year and a 30% decline from the same period in FY2024, the results indicate operational stabilisation, backed by a 90% rise in EBITDA from H2 FY2024 to US $1.6 million.
The downturn reflects continued pressure on the natural diamond market from lab-grown diamond (LGD) competition in the United States and muted consumer confidence in China—two of the industry’s largest markets. Retail and wholesale LGD prices slid further in H1 2025, squeezing profitability for US jewellers and prompting a reassessment of LGD’s long-term viability.
New recurring revenue services launched in 2024, including the expanded Most Valuable Plan™ (MVP) rough diamond optimisation platform, have gained broader adoption, now covering larger stone sizes with higher returns per unit. Sarine’s extension into LGD grading—via its GCAL labs in India and New York—has also added to its service portfolio.
Alongside these developments, the relocation of manufacturing to Sarine’s wholly owned Indian subsidiary has reduced operating costs and placed the company closer to its primary customer base. These efficiencies helped limit H1 losses to just US $0.2 million, while maintaining positive cashflow.
Sarine expects natural diamond demand to remain stable at current subdued levels, with the US market facing uncertainty from potential tariff impacts on Indian exports. A sharp and ongoing decline in LGD retail prices could reshape retailer strategies, possibly creating openings for natural diamonds.
Key growth drivers in H2 include:
Uptake of the MVP platform across additional stone sizes.
Rising demand for AI-powered, cost-effective LGD grading following GIA’s exit from traditional 4Cs grading for lab-grown stones.
Expanding adoption of Sarine’s traceability solutions, such as AutoScan™ Plus and Sarine Diamond Journey™, supported by partnerships with major US retailers.
In February 2025, Sarine announced talks to acquire a 33% stake in Kitov.ai, an AI-driven visual inspection solutions provider catering to industries from aerospace to consumer goods. The deal, worth an initial US $4.1 million plus a US $2.6 million convertible loan, could lift Sarine’s stake to 51% by 2028. This move signals Sarine’s intent to diversify beyond the diamond sector while maintaining its technological core.