Sarine, an Israeli technology company and a global leader in the development and production of digital, laser, and AI systems for the diamond industry, has announced its first-half 2026 results.
The company's revenue for this period decreased slightly by 6% to $14.4 million compared to the first half of 2025. As the company noted in its press release, geopolitical instability and laboratory-grown diamonds (LGDs) pose significant challenges for the sector.
Specifically, in the natural diamond mining industry, processing volumes continue to decline due to competition from LGDs. However, the report states that larger, higher-quality natural diamonds, from which the group derives a significant portion of its recurring revenue, remain less susceptible to the impact of LGDs. The group's gross profit remained stable, but a jump in operating expenses of approximately 25%, or approximately $2.2 million, resulted in a loss for the group in the first half of 2026. The weakening of the US dollar against the Israeli shekel accounted for nearly 50% of this increase, while other significant factors included the cessation of capitalization of development costs associated with LGD grading technology.
Competition from smaller, rough natural diamonds within LGD has driven the need for automation and other optimization solutions. Within LGD, price competition and pressure on margins have forced manufacturers and retailers to differentiate their LGD offerings from the mass market where possible.
The group also incurred a loss of $0.5 million from its associate, Kitov.ai. The group recorded an operating loss of $2.2 million and a net loss of $3.5 million in the first half of 2026, including tax-related expenses from prior years.
Assessing the future outlook, the company forecasts that business conditions in the diamond industry will remain challenging, but demand for natural diamonds in the retail market is expected to be stable.
"The significant expansion of our grading revenues during H1 2026 will continue to grow as we expect to capture a higher market share with GCAL’s reports," the company stated in a press release.
"Adding to GCAL’s existing diamond grading lab in Surat, India, we will be opening a new GCAL jewellery evaluation and documentation service centre in H2 2026 in Mumbai, to complement our grading services, address additional customer needs and support them in streamlining their supply chains."
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
