Alrosa Swings to $110 Million H1 Loss as Weak Diamond Market and Strong Rouble Hit Earnings
Russian diamond producer Alrosa has reported a net loss of 9.5-billion roubles ($110.1-million) for the first half of 2026, compared with a profit of 40.6-billion roubles in the same period last year.
The world’s largest diamond producer said its performance was affected by weak market conditions, a stronger rouble, relatively high interest rates and inflation in Russia.
Revenue, including subsidies, fell 33% year-on-year to 91.7-billion roubles as the prolonged downturn in the diamond market continued to weigh on sales.
Alrosa, which accounts for about 30% of global diamond production, reduced output by 10% to 29.8-million carats in 2025.
The company expects production to fall further to between 25-million and 26-million carats in 2026 before recovering to 29 million to 30-million carats once market conditions improve.
By the end of June, Alrosa’s diamond inventories had risen to 150.8-billion roubles. The company has also temporarily suspended operations at some low-margin assets amid challenging market conditions.
Despite the downturn, Alrosa said there were signs of recovery, including inventory normalisation in India’s diamond-cutting sector and rising polished-diamond prices across size categories.
The company also pointed to stable demand for diamonds larger than two carats and continued strong high-value jewellery demand in key markets such as the US, India and China.
Alrosa expects these trends to support a gradual improvement in the global diamond market balance over the medium term.
