Renaiss. Global

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.

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.

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.

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.

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.

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.