Sarine reports FY2025 loss, cuts costs and moves manufacturing to India

Sarine Technologies reversed the brief recovery it recorded in FY2024, reporting FY2025 revenue of US$29.6 million and a net loss of roughly US$3.9 million, as restated in IDEX’s industry brief and Rapaport’s coverage. The decline follows Gjepc’s earlier account that Sarine had recovered to a US$1.1 million net profit on US$39.2 million of revenue in FY2024, a turnaround from a prior-year loss of US$2.8 million.

The regional fall-off was sharpest in Europe and India. Rapaport published a regional breakdown showing sales to India down 24% to US$14.8 million, Africa down 10% to US$4.5 million, the United States down 2.5% to US$4.9 million, and Europe down 35% to US$2.0 million. Rapaport placed those numbers in the market context: "Sarine Technologies' sales fell last year as the lab-grown diamond market in the US grew and consumer confidence in China dipped."

Management has reacted with explicit cost containment and operational shifts. Rapaport reports the company lowered costs by "moving the manufacturing and support operations to India," a relocation paired with broader efficiency measures that Gjepc described as cutting costs and improving margins in the prior fiscal year. Rapaport also links the earnings pressure to reduced polishing activity in India, which lowered demand for Sarine's capital equipment, while new facilities opening in African producing countries "partly offset" that decline.

Technology and transaction moves are being used to diversify the business beyond natural-diamond equipment and services. Gjepc reports Sarine signed a Letter of Intent to acquire a majority stake in Kitov.AI, describing Kitov.AI's systems as streamlining inspection "through AI-based automation, reducing implementation time and enhancing accuracy" and positioning Sarine to enter electronics, automotive and aerospace markets. Rapaport separately reports Sarine "acquired 33% of Kitov.ai in August" and says the company developed a QA/QC system that can help Sarine expand into fields beyond the diamond sector. The two accounts were reported side-by-side in source material but are not reconciled to a single transaction timeline in public summaries.

Accounting and product notes help explain year-on-year volatility. Gjepc states Sarine "capitalised on development costs related to LGD grading and benefitted from valuation adjustments in GCAL put/call options," moves that contributed to the FY2024 profit; Rapaport’s reporting referenced the company's DiaExpert data machine as part of its product suite but did not quantify product-level revenue contribution.

IDEX’s industry brief restated the FY2025 headline figures and outlined management’s immediate actions and strategic options; the IDEX excerpt in the supplied brief includes the fragment "Sarine expects roughly US$1.5M of a", a partial line that signals further detail is either confidential or omitted from the summary. As Sarine shifts manufacturing to India and pursues AI-driven QA/QC partnerships, the company is moving to trade volatility in natural-diamond equipment for recurring services and cross-industry technology revenue - a pivot that will determine whether the FY2025 loss is a pause or the start of a deeper restructuring.