Renaissance Global Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Renaissance Global reported strong Q3 and 9M FY26 results, driven by robust core revenue growth and significant D2C expansion. Profitability improved due to operating leverage and a strategic shift towards higher-margin D2C business. However, the company faces short-term challenges from metal price volatility and an increased cash conversion cycle, which it plans to address by exiting unprofitable B2B customers and discontinuing certain licensed brands.

Highlights

  • Q3 core revenue (ex-bullion) grew 16% YoY to ₹824 crores, demonstrating robust business growth.

  • 9M FY26 core revenue increased 28% to ₹1,886 crores, reflecting sustained growth momentum.

  • Q3 PBT increased 31% to ₹42 crores, showing improved operating leverage.

  • 9M FY26 Adjusted PAT grew 36% YoY to ₹69 crores, driven by disciplined execution and margin resilience.

  • 9M US D2C revenues expanded 50% to ₹220 crores, with D2C EBITDA growing 92% YoY and margins expanding to 11% from 8%.

Concerns

  • Short-term turbulence is anticipated due to fluctuations in metal prices and ongoing geopolitical uncertainties.

  • Gross margin compression was observed due to the inclusion of low-margin bullion sales in the numerator.

  • The cash conversion cycle has increased to over 300 days, impacted by tariffs and consignment-heavy customers.

  • Some licensed brands are undergoing re-evaluation and discontinuation, causing degrowth and margin compression in that segment.

  • Bullion sales, which facilitated manufacturing, will wind down after Q4 FY26, potentially impacting top-line growth in Q1 FY27.

Key financials

2 periods

Q3

  • Core Revenue
    ₹824 Cr
    YoY +16%
  • EBITDA
    ₹63 Cr
    YoY +19.6%
  • EBITDA Margin
    7.7%
  • PBT
    ₹42 Cr
    YoY +31%
  • PAT
    ₹33 Cr
    YoY +36.5%

9M

  • Core Revenue
    ₹1,886 Cr
    YoY +28%
  • EBITDA
    ₹247 Cr
    YoY +16.8%
  • EBITDA Margin
    7.8%
  • PBT
    ₹87 Cr
    YoY +33%
  • Adjusted PAT
    ₹69 Cr
    YoY +36.6%

What they filed

Q1 FY27: revenue up 47.2%, net profit up 271.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue412 710 514 530 546 +33%963 +36%773 +50%780 +47%
EBITDA34 51 38 36 41 +21%61 +20%58 +53%41 +14%
Net profit11 24 23 7 20 +82%33 +38%30 +30%26 +271%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • US D2C
    ₹89 Cr Revenue (Q3)₹220 Cr Revenue (9M)92% EBITDA Growth (9M)11% EBITDA Margin (9M)

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Jean Dousset store expansion (3 additional locations) ₹25 Cr
    Yes. So currently, we've signed up 3 additional locations for calendar year '26. And so the capital expenditure for those 3, including working capital would be around ₹25 crores.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · Medium confidence about 30%
    I think FY '26, our revenues are up about 30% or so. So we expect to close off the year strong.

    — Sumit Shah

Profitability

  • Operating Margins Profitability · 2-3 year period · Medium confidence double digits

    From approximately 8% today

    our goal would be over a 2- or 3-year time frame to get to double digits. We're currently at approximately 8% or so, and the goal would be to go to double digits over the next few years.

    — Sumit Shah

  • Licensed Brands Margin Profitability · long term · Medium confidence around 15%

    From 13.3% today

    So in the licensed brands, this year, we are at about 13.3% versus 14.8%. So I mean, we would expect that the business should -- it should stabilize around the 15% number.

    — Sumit Shah

D2C Expansion

  • Jean Dousset Store Count D2C Expansion · end of calendar year 2026 · High confidence 5 stores

    From 2 stores today

    We're executing on plans to expand from 2 to 5 stores by end of calendar year 2026.

    — Sumit Shah

  • D2C as % of Sales D2C Expansion · long-term · Medium confidence 20% to 25%
    Our long-term vision of improving Direct-to-Consumer business, doubling that and making that 20% to 25% of our sales remains, and we continue to work towards that objective.

    — Sumit Shah

Capital Efficiency

  • ROE and ROCE Capital Efficiency · 3 to 4 years · Medium confidence mid-20s levels
    improve ROE and ROCE towards mid-20s levels... I think the 20% aspiration is more a long-term aspiration over 3 to 4 years.

    — Sumit Shah

Bullion Sales

  • Bullion Sales Cessation Bullion Sales · from Q1 onwards (FY27) · High confidence stop
    I think in the fourth quarter, we expect to have about a month, 1.5 months of bullion sales. So I would assume that it will be probably around 80, and then it will wind down from Q1 onwards because we were outsourcing our manufacturing for a few quarters. Our own manufacturing facility is now ready and operational. So around the 20th of February, bullion sales would stop.

    — Sumit Shah

What to watch in Q4 FY26

Bullion Sales Contribution

Q1 FY27
Current about a month, 1.5 months of bullion sales (around ₹80 crores) expected in Q4 FY26
Target wind down from Q1 onwards / stop

Why it matters

The cessation of bullion sales will impact reported revenue growth and margin calculations, as these sales are low-margin.

I think in the fourth quarter, we expect to have about a month, 1.5 months of bullion sales. So I would assume that it will be probably around 80, and then it will wind down from Q1 onwards because we were outsourcing our manufacturing for a few quarters. Our own manufacturing facility is now ready and operational. So around the 20th of February, bullion sales would stop.

Risks & concerns

  • Metal price fluctuations and geopolitical uncertainties

    high

    Short-term turbulence is anticipated due to fluctuations in metal prices affecting pricing and demand, and ongoing geopolitical uncertainties.

    Management acknowledged

  • Increased cash conversion cycle

    medium

    The cash conversion cycle has gone up (over 300 days) due to tariffs leading to longer manufacturing timelines and consignment-heavy B2B customers.

    Management acknowledged

  • Gross margin compression from bullion sales

    medium

    Bullion sales, used to facilitate manufacturing, are low-margin and have compressed overall gross margins.

    Management acknowledged

  • Degrowth and margin compression in licensed brands

    medium

    Re-evaluation and discontinuation of some fringe licenses are causing degrowth and margin compression in the licensed brands segment.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Impact of Tariffs on Margins and Manufacturing Strategy Direct
So I think that we've established a manufacturing facility in the Middle East. And this obviously means that there is an ongoing cost impacting margins currently on an ongoing and on an ongoing basis. We believe that this is the most efficient way for us to move forward. So the India tariffs going to 18% really do not have any bearing on our company because we've got a CBP approved process whereby our country of origin is UAE.

Clarifies how the company has mitigated the impact of India tariffs on its cost structure and margins by shifting manufacturing.

Asked by Riddhesh Gandhi

Gross and Net Debt Figures Evasive
I don't have the numbers in front of me, but I can have someone from the IR team come back to you with the number.

Management was unable to provide current gross and net debt figures, which are key indicators of financial health.

Asked by Riddhesh Gandhi

Sustainability of Growth and Future Guidance Partial
Yes. So I think that our growth effectively is about 15%, 16%, which we believe is sustainable. I think the headline number shows 35% revenue growth, and that includes onetime bullion sales, which will continue for one more quarter and they'll stop. Because of our UAE manufacturing and some amount of outsourcing there, there was some element of bullion sales.

Analyst questioned the high growth rate compared to peers; management clarified the core sustainable growth rate and the impact of bullion sales.

Asked by Riddhesh Gandhi

Shareholder Disappointment on Margin Improvement Direct
Yes. So I think if you take the 9 months expenses ex of advertising, you will see that the savings are 36 crores. So I think that just please go through the numbers carefully, and you will see that the expenses have gone down year-over-year. That's number one. ... So if you take a 16% increase in revenue, PBT margins have gone up by 31% on 16% revenue growth.

Analyst expressed disappointment that cost savings weren't reflecting in improved margins; management clarified by excluding bullion sales, margins did improve.

Asked by Sudhir Bheda

Working Capital and Inventory Days Direct
Yes, it will be in the range of around 45 days based on annualized. ... Yes. So I think that the debtor days, as we've maintained, are in and around 90 days or so, and they've been stable at that number.

Provides specific metrics on inventory and debtor days, crucial for assessing working capital efficiency.

Asked by Divhy Gosar

ROE/ROCE Targets and Drivers Direct
Yes. So I think the as the proportion of Direct-to-Consumer goes up, I think our Direct-to-Consumer business is actually -- extremely capital light. It involves -- it's a negative working capital cycle business. I think as that business goes towards the 20s, we would expect our ROES and ROCEs to inch up. And I think the 20% aspiration is more a long-term aspiration over 3 to 4 years.

Explains the strategy to improve capital efficiency (ROE/ROCE) through D2C growth and sets a long-term timeline for achieving the target.

Asked by Riddhesh Gandhi

Cash Conversion Cycle Increase and Mitigation Direct
Yes. So I think, Riddhesh, one of the challenges, obviously, has been due to the tariffs getting introduced, the inventory days has increased this year because the manufacturing time line itself has become significantly longer, right? I mean we are first buying metal in Dubai, buying the metal, then bringing it into India. So the working capital cycle has become longer due to this fact. ... So there is a conscious effort that as we scale this business, there is going to be on the B2B side, certain low ROE, ROCE customers where the cash conversion cycles are very poor, we may need to exit.

Addresses the concern about the increased cash conversion cycle, attributing it to tariffs and outlining a plan to exit unprofitable B2B customers.

Asked by Riddhesh Gandhi

Impact of Rising Metal Prices on Demand Partial
Yes. So I think that the impact of that will sort of be known only in the current quarter and going forward. I think a lot of retailers took price increases for tariffs, but not due to metal because some of them have quarterly locks and a lot of them would have inventory. As of right now, we are not seeing significant impact, but time will tell. It's something that one needs to watch carefully because it has been a very meaningful increase in the raw material.

Highlights the uncertainty regarding the impact of recent significant metal price increases on consumer demand, especially for the B2B segment.

Asked by Shashank Jain

2 min read 6 chapters

Detailed narrative

Strong Core Business Growth and Strategic Shift

Renaissance Global reported robust core business growth in Q3 and 9M FY26. Q3 core revenue (excluding bullion sales) grew 16% year-over-year to ₹824 crores, while 9M FY26 core revenue increased 28% to ₹1,886 crores. This growth was achieved despite headwinds from tariffs and metal price increases. The company is strategically transitioning from a volume-led exporter to a premium, brand-led, consumer-focused jewelry platform, with a long-term vision to make D2C 20-25% of its sales.

D2C Business Outperformance and Expansion

The Direct-to-Consumer (D2C) business continues to be a significant growth driver. US D2C revenues grew 50% year-over-year to ₹89 crores in Q3 and expanded 50% to ₹220 crores for 9M FY26. D2C EBITDA for 9M FY26 grew 92% year-over-year, with margins expanding from 8% to 11%. The company plans to expand its Jean Dousset stores from 2 to 5 by the end of calendar year 2026, with a capital expenditure of approximately ₹25 crores for three new locations slated for July, September, and November 2026.

Improved Profitability and Operating Leverage

Profitability showed significant improvement, with Q3 PBT increasing 31% to ₹42 crores and 9M FY26 PBT growing 33% to ₹87 crores. Adjusted PAT for 9M FY26 increased 36% year-over-year to ₹69 crores. This performance reflects disciplined execution, margin resilience, and operating leverage, partly due to a major cost-saving initiative implemented a year ago and the shift towards higher-margin D2C business.

Working Capital and Cash Conversion Cycle Challenges

The company's cash conversion cycle has increased to over 300 days. This is attributed to tariffs, which have led to longer manufacturing timelines in UAE, and the presence of consignment-heavy B2B customers. Inventory days are currently around 140, down from 166 in September. Management plans to improve the cash conversion cycle meaningfully in the following financial year by exiting certain low ROE/ROCE B2B customers.

Impact of Metal Prices and Licensed Brands Re-evaluation

Rising metal prices are a source of short-term turbulence, with the full impact on consumer demand yet to be determined, especially for the B2B segment. The D2C business has implemented calibrated price increases to manage this. In the licensed brands segment, re-evaluation and discontinuation of some fringe licenses have caused degrowth and margin compression, with margins currently at 13.3% (down from 14.8%). Management expects these margins to stabilize around 15% in the long term.

Phasing Out of Bullion Sales

Bullion sales, which were used to facilitate manufacturing during periods of outsourcing, are expected to wind down after Q4 FY26. Approximately ₹80 crores in bullion sales are anticipated in Q4. These sales will cease from Q1 FY27 as the company's own manufacturing facility is now fully operational, ensuring self-sufficiency and eliminating the need for bullion-related transactions.

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