Renaissance Global Limited (RGL) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Renaissance Global Limited Q3 and 9M F526 Earnings Conference Call. As a reminder, all participant lines will be to listen only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now have the conference over to Mr. Palash Kavali. Thank you. And over to you, Mr. Kavali.

Thank you. Good afternoon, everyone. I welcome you all on behalf of Nuama Wealth and Merlin Capital. I thank the management of Renaissance Global Limited for the opportunity to host their Q3FI26 earnings call. We have with us today Mr. Sumit Shah, Chairman and Global CEO, and Mr. Darsil Shah, Managing Director. I will now hand over the call to Mr. Sumisha to take us through the quarter. Thank you all, and over to you, Sumisha.

Good afternoon, everyone, and thank you for joining us today. Q3 and nine months, FY26, represents a meaningful milestone in Renaissance Global's evolution into a brand-led, consumer-centric global jewelry platform. The transformation we embarked upon a few years ago is now clearly visible in our financial performance with stronger revenue growth and expanding profitability and improving capital efficiency. Let me begin with revenue momentum. In Q3, our core revenue, excluding bullion sales, grew 16% year-over-year to $824 crores for the first nine months of FY26. Core revenue increased 28% to $1886 crores. This sustained growth reflects robust business growth despite significant headwinds on account of tariff and metal price increases. Our direct-to-consumer business continues to outperform. In Q3, U.S. D2C revenues grew 50% year-over-year to 89 crores. For nine months, U.S. D2C expanded by 50% to 220 crores, placing us at an annualized run rate of approximately 300 crores. Importantly, this is not just volume-led growth. It's high-quality growth driven by premium positioning, owned brands, and deep consumer engagement. Encouragingly, revenue growth is translating into stronger profitability. In Q3, PBT increased 31% to 42 crores, demonstrating improved operating leverage. For nine months, PBT grew 33% to 87 crores. Adjusted pad increased 36% year-over-year to 69%. The performance reflects disciplined execution, margin resilience, and sharper capital allocation, even as we continue investing in long-term growth engines. Strategically, two structural drivers are reshaping Renaissance. First, the accelerated shift towards own brands. Owned brands have scaled multiple fold over the past three years. They are not only growth engines, but also structurally margin accretive, capital efficient, and strategically defensible. Second, premiumization of our D2C portfolio. Our investment in Jean Doucet adds a high-margin luxury player to our U.S. D2C platform. We are executing on plans to expand from two to five stores by end of calendar year 2026. This strengthens our positioning in bespoke craftsmanship and luxury lab diamonds, a category with strong structural tailwinds. As we look ahead, we anticipate some short-term turbulence. Driven by fluctuations in metal prices, affecting both pricing and demand, and ongoing geopolitical uncertainties. However, our long-term priorities remain clear. Strong revenue growth across own D2C brands, drive operating leverage through scale and cost optimization, accelerate D2C expansion, both organic and inorganic, improve ROE and ROCE towards Mid-20s levels, enhanced free cash flow generation, and balance sheet strength. The renaissance today is structurally different from the past. We are transitioning from a volume-led exporter to a premium brand-led consumer-focused jewelry platform. The runway ahead is visible, multi-year, and compelling. With that, I'll hand it over to Darshil to walk you through the financial performance in greater detail.

Thank you, Sumit, and good afternoon, everyone. I will briefly take you through the key financial highlights for Q3 and nine months of FY26. Starting with Q3, FY26 performance, revenue from operations, excluding bullion, grew 16% year-on-year to 824 crores, reflecting healthy underlying demand momentum. EBITDA for the quarter increased 19.6% to 63 crores. And margin stood at 7.7%, demonstrating operating leverage, despite continued investments in growth initiatives. PBT grew 31.4% to 42 crores, and PAT grew 36.5% to 33 crores, reflecting improved profitability, conversion, and discipline cost control. Moving to the 9-month performance, revenue from operations. Stood at 1886 crores, up 28% year-on-year. EBITDA increased to 147 crores, with margins at 7.8%, and the growth is 16.8% year-on-year. Adjusted PBT grew 33% to 87 crores, and adjusted PAT increased 36.6% to 70 crores. This growth reflects scalability of our operating model and strong execution across segments. From a segment perspective, our own brands, particularly D2C, delivered robust growth in improving profitability in the U.S. market. D2C revenue grew 39% year-on-year to 220 crores. D2C EBITDA grew 92% year-on-year, with margins expanding to 11% from 8% last year. Finance costs declined year-on-year for nine months FY26. Overall, the financial performance this quarter reflects strong and consistent revenue growth, improving operating leverage, better conversion of EBITDA to bottom-line profits, continued focus on disciplined capital allocation. We remain confident in sustaining this trajectory as we move into the final quarter of FY26 and beyond. Thank you.

Speakers, shall we open the line for questions? Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ritesh Kanti with Discover Capital. Please go ahead.

I said, you know, just wanted to understand any potential implications which happened on margins because of the tariffs, and is the normalization of the tariffs going to help us? Are we neutral? Are we benefit? I just want to understand that first. Sure.

So, uh... I think that, you know, we've established a manufacturing facility in the Middle East, and, you know, this obviously means that there is an ongoing cost impacting margins currently on an ongoing and on an ongoing basis. You know, we believe that this is the most efficient way for us to move forward. So, you know, the India tariffs going to 18% really do not have any bearing on our company because we've got a, you know, CBP-approved process whereby our country of origin is UAE.

Got it. Understood. So, we don't have any, I mean, the existing run rate on the margin is reflective of the extra expenses or to buy from which we are running the operation now. That's right.

Got it, got it.

Sir, the other question was, you know, if you could highlight how much is the gross and the net right now and how much it was in the previous quarter?

You know, 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.

Okay, okay, okay, fine. Okay, and the other question was, just want to understand this growth which we've had is obviously extremely impressive. Just want to understand what's actually driving this growth, because obviously when we look at some of the industry players globally, they're not having these kind of growth. I just wanted to understand the... How we should be looking at it, and if there's any guidance you can give us with regards to growth for the year ahead.

Yes, so I think that, you know, our growth effectively is about, you know, 15-16%, which we believe is sustainable. You know, I think the headline number shows 35% revenue growth. And, you know, that includes, you know, one-time bullion sales, which will continue for one more quarter, and they'll stop, you know, because of our UAE manufacturing and some amount of outsourcing there. There was some element of bullion sales. So I think the revenue growth is 16%. And, you know, bottom line, obviously, is growing faster because of two reasons. One is we did a major, you know, cost saving initiative about a year ago, which we started that went into Q1 of this year, and the resulting cost savings, as well as the shift in margins to shift in business to D2C.

Got it. And the bullion sales which we did, how large were the profits from that?

Zero, zero, zero, zero, zero. I think it was essentially to facilitate manufacturing.

Got it. Okay. I'll just rejoin the queue for the other question.

Next question comes from the line of Sudhir Pera with Pera Family Office. Please go ahead.

Yeah, good afternoon, sir. See, as a shareholder, we are disappointed with the result which you have declared. Last three quarters, you have been saying that we have saved 40 crore, but nowhere it is seen where you have saved 40 crore, because margin has never improved. If you see, this year, even each quarter margin operating profit, which is just 7%, which is much less than what it was like two, three quarters back. So, from where you have saved 40 crore, I am not able to understand, number one. And then, second, your revenue has also, you have shown good growth in the revenue, which is very nice to see that kind of growth. But that operating leverage has not kicked up. And that is not, we cannot see on the bottom line that that is happening. And D2C brand, which also has grown well under your ABLE leadership. But then it is somehow not reflecting in the bottom line. So can you explain how it is happening and what is the future guidance can you give on the profitability front and a bit of rent?

Yeah. So, I think if you take the nine months expenses, X 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. Number two, you know, I think that... Setting up a manufacturing facility in the Middle East has involved some amount of expenses and which was essentially something that happened in the August, September, October period, and there were, you know, expenses that we had budgeted, setting up a factory in a short timeline involved expenses that could not have been foreseen a few quarters ago. So I think there are a few puts and takes. I think that the fact that... You know, the PBT margin has gone up from last year. I'm not sure, you know, how you're looking at it, because the right way to look at it is to exclude the bullion sales, because the bullion sales is increasing the top line. So if you take a 16% increase in revenue, you know, PBT margins have gone up by 31% on 16% revenue growth.

I was talking about the EBITDA margin, you know, operating profit margin. That has gone down.

The operating profit margin in this quarter is higher than it was one year ago.

No, but last two, three quarters, if you see, it has not improved. In fact, it has gone down, actually. If you really see the operating margin, then the pure screener may have seen that it has come down.

Yeah, because in the screener, the Boolean sales for the two quarters are included. So what I'm asking you to do is to look at the sales X of the Boolean, and once you do that, the margins have actually increased.

So, what is your guidance going forward as your DTC sales is going to improve much more than your other verticals? So, what is the guidance of margin? Will it be double-digit kind of margin we will be able to see next year?

Yes, I think as we've maintained, you know, I think that as the direct-to-consumer proportion goes up, margins, you know, will increase. And our endeavor definitely is over a two-three-year period to get to double-digit margins. So, you know, that doesn't change. I think that, you know, with the introduction of the tariffs in August, there has been volatility in this quarter. And, you know, the... Profit numbers are slightly below our expectations, but I think given the circumstance and, you know, the short period in which we had to deliver the quarter, I think that our team did an exceptional job of delivering for our customers and improving margins along the way. Our long-term vision of improving direct-to-consumer business, doubling that, and making that, you know. 20-25% of our sales remains, and we continue to work towards that objective.

And, sir, my last question is about working capital. Our debtor days, can you throw some light on that? What it is as of December?

Yeah, 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.

Great. Thank you, sir. Thank you for the opportunity, and all the best.

Thank you. A reminder to all the participants that we may press star and want to ask a question. Once again, a reminder to all the participants that you map a star and want to ask a question. Next question comes on the line of TV Gosar, with Subcom Ventures, please go ahead.

Hi, sir. So, what would be our inventory days at the end of nine months?

Mr. Gosar, sorry for interrupting. We cannot hear you. Can we come in the range and talk? Hello. Am I audible? Yes, please go ahead.

Yeah, I wanted to ask what would be an inventory it is in the first, at the end of the first nine months?

Rarshal, would you have that number handy?

Yeah, it will be in the range of around 45 days.

Okay. Between the annual life. Okay, and sir, what would be the, the bullion chase, what would be the trajectory in the fourth quarter?

Yeah, so I think in the fourth quarter, we expect to have about a month, month and a half of bullion sales. So I would assume that it would be probably around 80, and then it will wind down from Q1 onwards, because, you know, 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.

Okay, thank you so much.

Thank you. A reminder to all the participants that you might be a star and want to ask a question. Next question comes from the line of Ritesh Gandhi with Discover Capital. Please go ahead.

Hi. You indicated you expected ROCs of about 20% or going ahead and we are sparring towards that. Just wanted to understand how we expect to achieve this and the drivers of that.

So I think, you know, the... As the proportion of direct-to-consumer goes up, I think our direct-to-consumer business is actually extremely capital-light. It's a negative working capital cycle business. I think as that business goes towards the 20s, we would expect our ROEs and ROCs to inch up, and I think the 20% aspiration is more a long-term aspiration over three to four years. I don't think we are getting from where we are today to that number in, you know, within a short time frame. So that's sort of a three-year goal, and, you know, meaningfully as we scale the D2C business,

Look at our, actually, the cash conversion cycle over the last few years. You know, it's gone up in the 24, from 23, it's gone up from 25 to 24. We don't have the related, well, balance sheeted numbers, but sort of despite our D2C, We're actually becoming a higher proportion, despite us actually exiting some of the low ROC businesses, right? We're still sort of having a cash conversion cycle of, you know, over 300 days. We're just waiting for 300 days.

Yeah, so I think, Ritesh, one of the challenges obviously has been due to, you know, the tariffs getting introduced, the inventory days has increased this year because the manufacturing timeline 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. Number two is as lab diamonds become larger, our sort of... You know, payable days has become shorter because, you know, we are not buying as many diamonds because lab diamonds are lower in value. So, there are multiple puts and takes here that are kind of affecting our cash conversion cycle. But your point is well taken. I think we are cognizant of the fact that there are, you know, some customers which…

Before, because I'm looking at your little 25 numbers, this is before any introduction of this tariff, right? Even there, we are seeing some amount of an increase in your cashed conversion versus what we would typically expect to see as a reduction as you know, as you know, yeah, as you know, as you know, lower ROC businesses.

Yes, I was just getting to that. There are a few customers which are consignment-heavy, and as our D2C business scales, you will see over the next couple of years or so us exiting those businesses because we're aware that there are certain department stores which are extremely consignment-heavy, and they become a drag on our inventory days. So, you know, there is a conscious effort that, you know, as we scale this business, you know, there is going to be on the B2B side certain... Low ROE, ROC customers where the cash conversion cycles are very poor, we may need to exit.

But are those historically reasonably high on profitability, so there's sort of ultimately the inventory, it pays maybe higher, but the EBITDA.

No, I think they are not. I think that, you know, it was a matter of sort of scale and spreading our operating overhead. I think that at the right opportune moment, you know, it would be not margin accretive after accounting for cost of capital. So we are cognizant of that and they are, you know, they are businesses that after exiting would be kind of an offset to cost of debt.

And, you know, while you turn up the exact numbers on your net debt, there obviously is a slight increase in your interest rate in your December quarter compared to your September quarter. Just want to understand that, you know, despite generating reasonably good EBITDA, right, despite effectively exiting... Some of our businesses which aren't particularly attractive, you know, is our net debt still isn't reducing, actually, so just want to understand what the reason is because we are, because our highest growth isn't coming in an area that's reasonably asset-like, right? So it isn't even that the growth is easing up our capital.

So Q2 to Q3 is another... Sort of not a valid comparison because, you know, of seasonality. And, you know, as I mentioned to you, what has happened is due to the shift in business to lab grown, our payable days has gone down meaningfully. So, you know, that's one source of funding, right? Working capital is funded through sort of... You know, either gold you buy in advance or diamonds are bottom-fledded. So payable days have gone down is kind of one reason. And I think year over year, they've remained sort of largely stable. I think nine months interest costs are lower. Q3 to Q2 is not a fair comparison in a sense because of seasonality. It would again go down in Q4 as compared to Q3 because a lot of our receivables are collected in January, February, and March.

So, if we were today looking at it, just looking at it, operating with free cash flow, right, in the 2024 and 2025 was extremely low, right? Just want to understand that as we look ahead, you know, is there a, is the EBITDA, like, when will we see a strong conversion from EBITDA to actually operating free cash flow?

So I think, you know, the attempt is, you know, as I just mentioned, You will see these as we kind of reduce exposure to customers where the cash conversion cycle is poor. I think some of these customers are not accretive in terms of returns over cost of capital. So, you know, we believe that as we scale these businesses, you will see us in the following year actually scale down business with some customers. And so I mean, if you look at it over a five year period, you know, there has been two challenging years, the three or four years prior to that, there was significant and positive cash conversion. So I think we acknowledge that there has been two years which have been challenging. But you know, I think as the D2C business is scaling nicely, you will see the cash conversion cycle improve meaningfully in the following financial year.

And these are customers which we have identified. Are these new customers or are they customers whose velocity of the transaction has reduced? Do you just want to understand the reason that we haven't? The action has already been taken, or is it about to be taken? How are we looking at that?

It's a work in progress. With some of them, we've already begun the process, and I think it will accelerate into next year.

I just wanted to also understand, as we've expanded our D2C business, have the unit economics changed in any way in terms of the cost of acquisition of clients, in terms of the margins we make, all that? I just wanted to understand how that is playing out as we're achieving scale.

Yeah, so I think if you see the operating profit, I mean, there is a meaningful improvement in the profitability, which is because of operating leverage that you're seeing, right? On 50% revenue growth, the operating profit has gone up by 90% in the D2C business. So that's clearly a reflection of operating leverage.

Got it. And the operating leverage is basically because of the more optimization and some amount of optimization with regards to the cost of acquisition of product customers and all that stuff.

So, I didn't hear your question fully, but I think the gist of it is that I think that it's a combination of marketing efficiencies as well as the overhead getting spread over a much larger base.

Got it. All right. And just overall, as we look at the NFS market in the U.S., are you seeing any kind of overall slowdown in the market as a whole? Obviously, we are okay, given how small we are in terms of the overall market, but just in fact, if you could share on how the growth of the industry is going.

Our sort of understanding or reading is that it's relatively stable, and U.S. consumer demand remains robust. We're not seeing any signs of weakness.

And in terms of lab-grown versus natural, you've obviously seen a large move, which has happened. Is the percentage now of a large versus a lab versus natural still increasing, or is it stabilizing now, the ratio between the two?

I think we continue to see a shift towards lab-grown diamonds. I think that the trend is very clear, and it will continue to accelerate.

Thank you. Mr. Gandhi, please rejoin the queue for more questions. Next question comes from the line of Sashank Jain with Delhi Family Office. Please go ahead.

Sir, thanks for the opportunity. So, sir, I wanted to ask that, you know, since you have been saying that we'll be getting in D2C business in the time being, so, sir, won't our inventory go down and even like the working capital dependency as we will be getting the most of the money in advance? Yes, sir, that's my first question.

Yeah, so I think, you know, on the D2C business currently, you know, it's about 13% of sales. As that goes, you know, to a larger number, you're absolutely right that the net working capital days will improve for the business.

And, sir, on the second question, sir, also, how is the demand looking like, you know, since the gold prices and silver prices have gone up substantially, and, like, most of our business comes from the U.S.?

Yeah, so I think that, you know, the impact of that will sort of be known only in the current quarter and going forward. I think a lot of retailers... We 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.

Yes, sir.

And, sir, what are our plans to grow the Indian store and business?

We see that Titan is also entering in this segment, which gives us a big validation, and

also, like, our peers have been growing. So, sir, yeah. And, sir, what would we, like, the site margins look for the next year, considering the change in the business mix?

Yeah. I think as of right now, our India business is wait and watch. We are not actively looking at growing it meaningfully. We are not happy with the unit economics of the business so far. In terms of fat margins, I don't have an exact number, but on the operating margins, clearly our goal would be over a two or three-year time frame to go 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.

Okay, thank you, sir. I'll join back in the queue for Mukush.

That's the point on the inventory days, it's 140 days.

Thank you. A reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Majid Ahmed with Pinpoint X Capital. Please go ahead.

My article, sir?

Yes, go ahead, please.

Yes, sir. My first question is this, please. I want to understand, sir, what is the reason of gross noise in comparison?

Yeah, so I think that, you know, again, gross margin has compressed due to the bullion sales, you know, being in the numerator. I think that X of that, they would not have compressed.

I mean, sir, if I see our licensed brands and customer brands, so, like, how are we looking for looking to sustain margins and influence?

Sorry, could you please repeat your question? I couldn't hear your question.

Sir, in the licensed brand segment and customer brand segment, you are seeing margin compression happening. Thank you very much.

Yeah, on the licensed brands, we're currently in the process of re-evaluating some of the licenses that we have. We had a lot of fringe licenses, which we're in the process of discontinuing to focus around the core of the Disney license that we have. So we did see some degrowth, and that caused some compression in margins on that business. So, you know, I think that, you know, as we reduce costs in line with the reduced margins, and there are some exit costs related to some of these licenses, the margins have compressed. I think over the long term, we do expect the margins to stabilize.

When can we expect the margins to come back to the in line with the numbers?

In the licensed brands specifically or overall?

Overall, both of them.

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

So, can you expect the FI27 from next quarter, can you think it improves?

I think it will be probably FI27 because there is some volume degrowth happening on the license brand segment right now due to the exit of some of the licenses. So, it will probably be in FI27.

So, finally, I just want to understand, like, how much KX are we planning for Gion?

Currently, we've signed up three additional locations for calendar year 26, and so the capital expenditure for those three, including working capital, would be around 25 crores.

So, finally, sir, what type of revenue growth are you looking for for FY27?

For FY26?

Yes, 26 and 27.

I think that this year, obviously, you've seen the growth. We've registered healthy growth this year. It's a bit soon to tell for FY27. Currently, the momentum does remain strong. The only variable here right now is the metal prices that have gone up and what impact it has on consumer demand. I think that we'll be able to get a slightly better view in a quarter or two. Right now, I don't have very clear visibility on FY27. I think FI-26... You know, our revenues are up about 30% or so, so we expect to close off the year strong. I think FY27 is a little early to say.

So, FY26, we can look around 7 to 8 percent, right?

Yeah, that's where we're currently at, yes.

Let's open it.

Thank you. Next question comes from the line of Shrut Payani with Adhiza Intia. Please go ahead.

Yes, hi, sir. Sir, so John Dusey operates at significantly higher ticket sizes. So, as we are going to expand to five boutiques by the end of 2056, can we expect blended margins of the D2C portfolio to like improve?

Yes, absolutely. I think that, you know, we're, even in this quarter, we've seen margins improve, and we will continue to see the direct-to-consumer margins go up as we expand, John, to say.

All right. So, with working capital discipline improving and these discontinued operations behind us, what is the timeline to achieve mid-20s ROCE?

I think I would say realistically three years is when we would get there.

Trios. All right. All right. Thank you.

Thank you. A reminder to all the participants that you may be a star and want to ask a question. Next question comes from the line of Pawan and intuition investor. Please go ahead.

Yeah. Hi, sir. So, so essentially, I mean, you know, in twofold, we are saying that demand is good, but in their advent, so how should we read it? So it should be better quarter to quarter. How should we read it?

So, quarter on quarter is not really a good way to see our business because, you know, Q3 is, in terms of sales volume, normally the highest quarter. I mean, year over year, we should see, you know, reasonable growth. I think that that would be the right way to do it. I think, you know, how demand sort of plays out going forward is yet unknown. Overall, the U.S. I think, as I mentioned, the variable is the metal prices going up, and what impact that has on consumer demand, albeit temporarily, is not fully certain.

Sir, it's been about 20-30 days already since metal prices have been up. What are the cues to take for last, say, one month?

The time for our customers to pass on the price increase is a little bit longer than that because a lot of them have quarterly gold locks, and we usually have hedging positions where we protect ourselves for the quarterly gold locks. And they normally have inventory at older costs. So it takes a while for the price increases to show up at the retail consumer. So I would say 30 to 40 days is a little too soon to gauge impact on demand.

That's surprising actually because, I mean, at least in India, I mean, if I go to purchase at a retail counter, it is the gold is at today's price. There is no lag in India. Yeah, yeah.

So, you know, in the US, jewelry is not sold as a component basis. It's kind of an MRP-based product, similar to what apparel and footwear would be. So, it's typical in India, and in our Eraswa business, we change prices every day along with gold. That's not how it's done in the US, UK, and Canada.

And in terms of the composition of inventory, generally, how much is metal, I mean, gold, and how much is, say, stone for us?

So, I would say 50-50 would be a reasonable ratio between metal and stones.

So, when you say 140 days, I mean, at the end of the financial year, FY25, it was actually substantially higher than 140 days. So, should we end the year with similar 140 days or how should we think about it?

Yeah, that's right. We are currently at 140 days. We were at 166 days as of September. So, inventory has meaningfully gone down. And our net working capital days has also gone down compared to the previous years, and so has the debtors. As I explained earlier, we're in the process of exiting from unprofitable customers. So our net working capital days, receivables, as well as inventory days, has gone down meaningfully quarter over quarter and year over year.

In terms of join, do you say, what are the timelines to open new stores?

So, currently, we have one store opening on July 1, another one on September, and another one in November. So, there are three slated for calendar year 26.

Do you want to presume that in your journey, do you say the bolt component is very less because the stone itself is price very high? Yes.

So, on the direct-to-consumer business, we have not seen an impact. Because we work on our zero inventory model, we obviously have to take prices in real time. So, just to clarify, on our direct-to-consumer business, we have not seen a significant impact on demand due to metal. However, All of the metal price increases. We are doing it in a thoughtful and calibrated manner. The impact on margin is 1% or 2%, and the gross margins are 65%. So it is not a meaningful impact on our margins. And on the D2C business, as I mentioned, we have been taking calibrated price increases, and we have not seen a very meaningful impact on demand. What I was referring to was on the B2B side, which is kind of the larger business. A lot of retailers who have inventory have not yet taken price fully, and we don't know what the impact of demand will be from our retail partners. On the B2B business.

And lastly, sir, during the course of this quarter, there have been some shares sold by the promoters. Can you clarify why was that done and should you reinstate your shareholding now?

You know, I'll have to get back to you. I think it was a very small number, if there was. I will have my IR come back to you with what the quantum was.

Okay, okay. Now, I think, but, you know, I mean, the stock hasn't, I mean, after the fundraise, the stock hasn't done much. And, I mean, if the promoters were to increase this thing, that would actually, you know, provide confidence to minority investors. Sure, yes. And we're looking forward to interacting with you more often. I think we've not been, despite the investors, we've not been able to meet you very often. Sure, sure. Look forward to it. Yeah, so I have put in the request. I mean, please, looking forward to meeting you. Sure.

Thank you. A reminder to all the participants, please first star and one to ask a question. Next question comes to the line of Shashank Jain, Delhi Family Office. Please go ahead.

Sir, thanks for the opportunity again. Sir, so as we are focusing on more on the D2C side, so like we have brands, so is there any other brand that we are looking for or will be growing from this side by these brands?

You know, we're constantly sort of on the lookout and evaluating opportunities. I think that, you know, clearly the ambition is to transition from a B2B company to a company that generates a large majority of their profits from direct-to-consumer. I think currently there is enough runway for organic growth with the brands that we have. Having said that, I think if the right opportunity comes by, we are open to evaluating further acquisition opportunities.

Sir, is there any opportunities right now?

Nothing specific that I can report. Okay. Thank you so much, sir, and all the best.

Thank you.

Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and ask session. I would now like to hand the conference over to the management for closing comments.

Thank you, everyone. I hope we have been able to answer all your questions. Should you need any further clarifications or if you would like to know more about the company, please feel free to contact our investor relations team.

Thank you. On behalf of Renaissance Global Limited, it concludes this conference. Thank you for joining us. You may now finish your line.