Renaissance Global Limited (RGL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Renaissance Global Limited's Q4 FY26 Earnings Conference Call hosted by Dollard Capital. As a reminder, all vice versa lines will be in the listen-only mode, 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, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Akshay Patel from Dalit Capital. Thank you and over to you, Mr. Patel.

Thank you, Michelle. Good evening, everyone, and thank you for joining us on Reneging Global Q4 FI 26 and Fulier FI 26 running conference call. We have with us Mr. Sumit Shah, Chairman and Global CEO, Mr. Darshal Shah, Managing Director, and Mr. Jagrish Fandari, Management Strategy. We would like to begin the call with a brief opening remarks from the management, followed by a question-answer session. Now, I would like to invite Mr. Sumit Shah to make his opening remarks. Over to you, sir.

Thank you, Akshay. Good afternoon, everyone, and thank you for joining us today. On behalf of Renaissance Global, I'm pleased to welcome you to our Q4 and FY26 earnings call. FY26 has been a defining year for our company, marked by strong revenue growth, improving profitability, disciplined capital management, and continued progress in building a globally relevant, consumer-focused jewelry platform. During the year, our revenue grew by 29% year-over-year to 2,572 crores, while EBITDA increased by 22% to 204 crores. Profit after tax, before exceptional items, grew by 36%, 200 crores, reflecting the resilience of our business model, focused execution, and improving operating leverage across organization. One of the key highlights of the year has been our continued focus on operational excellence and cost optimization. Through disciplined initiatives across sourcing, manufacturing efficiencies, and organizational integration, we achieved approximately $40 crore in annual cost savings. Importantly, these efficiencies were realized while successfully integrating the Jean Ducé acquisition and expanding our retail presence in the United States with the launch of an additional Jean Ducé store in New York in November 2025. We also made meaningful progress in strengthening our balance sheet. During Q4, FI26 alone, we reduced our gross debt by approximately 123 crores through improved working capital management and prudent capital allocation and strong cash flow generation. Low leverage, reduced finance costs, and tighter working capital controls are helping us build a more agile and financially resilient business capable of supporting our long-term growth ambitions. Our strategic transformation towards a higher-margin, brand-led, B2C-focused business model continues to gain strong momentum. The response to Jean Dusset in the U.S. luxury market has been extremely encouraging. Following the successful launch of our second store in New York, we are now preparing for the next phase of retail expansion, We plan to open four additional stores across Key metropolitan luxury markets in the U.S. We believe this retail expansion will significantly strengthen the brand visibility, deepen consumer engagement, and accelerate our presence in the world's most attractive luxury jewelry market. Each existing Jean Busset store generates between 30 and 35 crores in annual sales, depending on the location. Demonstrating the strong scalability and revenue potential of the brand's retail model, the company expects similar positive performance trajectory from the additional stores planned in FY27. At the same time, our broader direct-to-consumer portfolio continues to demonstrate strong organic traction. Based on current momentum and market tailwinds, we expect our U.S. direct-to-consumer revenues to organically grow between 35% to 40% this year to 375 crores by end of FY27. As we continue scaling our direct-to-consumer business and improving operating efficiencies, we remain confident in our profitability outlook. We expect strong growth in profitability in the coming year in the range of 20-30%, supported by our increasing contribution from our direct-to-consumer segment and improving efficiencies. Looking ahead, we remain highly optimistic about the long-term opportunity in the branded luxury segment and direct-to-consumer. Our strategic priority is very clear to scale a direct-to-consumer business aggressively while improving profitability and return ratios. As part of our strategy, we continue to explore strategic opportunities. In the direct-to-consumer space to complement our current capabilities, our focus remains on identifying businesses and brands that can enhance consumer access. and deepen our brand positioning and accelerate growth in premium, higher-margin categories. We believe that a balanced approach, combining with strong organic growth, with carefully selected strategic acquisitions, will help us build a scaled, differentiated global jewellery platform over the coming years. Our ambition is to build a 1,000-crore direct-to-consumer brand by FI29, supported by continued expansion of Jean Brusset across And growth across our various other brands enhance digital capabilities and selective acquisitions that align with our long-term vision. We believe that the combination of stronger brands, a growing retail footprint, disciplined capital financial management, and sharp focus on the right channels positions renaissance for sustainable value creation in the years ahead. With that, I'll now hand over the call to Darshal to discuss operational and financial performance in greater detail. Thank you.

Thank you, Sumit, and good evening, everyone. Let me briefly walk you through the key financial and operational highlights for Q4, FY26, and for the 12-month FY26 period. I am pleased to share that FY26 has been a year of strong operational execution and strategic progress for Renaissance Global. Our focused approach towards building a more resilient, consumer-led business model continues to deliver encouraging results across growth, profitability, and balance sheet efficiency. During Q4 FY26, our revenue before bullion sales grew by 33% year-on-year to 686 crores, with EBITDA growing by 40% to 57 crores. PBT before exceptional items grew sharply by 83% in Q4 to reach 36.5 crores. For the full year FY26, revenues grew nearly 30% to 2572 crores, led by a healthy growth in the U.S. D2C and consumer brand segment. On the profitability front, we delivered healthy EBITDA growth despite ongoing investments in brand building and consumer acquisition. Full year EBITDA grew by 22.5% to reach 204 crores. PBT before exceptional items grew 45% for the full year to reach 124 crores, while adjusted PAT grew by 36% to reach 100 crores. These numbers underline the improving earnings quality and scalability of our business model. What is particularly encouraging is the continued momentum in our D2C business. Especially in the U.S. market, which remains a key growth driver for the company. Our U.S. D2C revenues grew by a strong 44% to reach 275 crores for the full year, with both John Luce and other brands growing aggressively. U.S. D2C EBITDA numbers improved in line with increasing revenues, reaching a very impressive 12.6% for F526 versus 11.3% for F525. The U.S. B2C market continues to be a significant opportunity for us with a promising pipeline of store rollouts and organic growth momentum across brands. Our working capital metrics also improved substantially. Debtor days reduced from 124 days to 109 days, while inventory days came down significantly from 169 days to 122 days. These improvements reflect stronger operational controls, better inventory planning, and increasing efficiencies across the supply chain. As we continue increasing the share of D2C within our overall business mix, we expect further optimization and capital utilization. With the D2C business operating on a structurally low working capital model, we believe we can sustain healthy revenue growth while maintaining disciplined working capital levels and enhancing return ratios over time. FY26 has been an important year in our transformation journey. We are building a stronger portfolio of D2C brands, deepening our digital capabilities, improving profitability and creating a more efficient balance sheet, all while positioning Renaissance Global for sustainable long-term value creation. Thank you, and we look forward to your continued support and trust.

So, should we open the floor for the Q&A?

Yes.

Yes, please. Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and 1 on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and 1 to ask questions. Anyone who wishes to ask questions, may please press star and 1 now. The first question is from the line of Ashish, an individual investor. Please go ahead. Sir, you can talk about the call. Please proceed.

Thank you for joining me. Do you have a question?

Yes sir.

I would like to know that Renaissance Global is a debit card. The debit card is a company. Yo, ask if that person would have concerns?

You talk about theft ир. Yes. So, So, we have now... So, our net debt to equity is... To 0.15 to 0.2%. तो अभी जो net debt number है, वो काफी कम है, और healthy है. तो अभी हर साल जो profit होगा, उससे हम लोग debt कम करते जाएंगे. मगर ऐसा कोई specific target zero debt का नहीं है, क्योंकि debt कमती का बहुत कम है.

Yes, I want to know that the land of Bounder is sold or not sold?

Yes, it is not sold.

And the investment of India and the US market is sold? What are you asking?

Thank you.

I'm asking if you have invested in the stock market in India and the US stock market, or have you sold it?

No, it's not.

Do you have sold it now? No. So you sold it from 120 crore books.

Yes, now our current investment is about 100 crore and cash is 100 crore. So, our investment and cash is 200 crore and total debt is 400 crore. So, the net debt is around 200 crore. That is the total net debt and equity.

Yes, I understand. So, it will be 200 crore because it is cash and it is an investment.

Yes, sir.

So, I would like to know that 1-2 years in the U.S. market and Europe is how much growth is there?

So, our business growth in this year will be very strong because our D2C business is very strong. So, our expectation is that this year's profit growth will be 20-30% of growth.

I understand. I want to know one thing, but why is it not going to share? The other company says that share is not going very much, Our company is very good in all parts. Debit is free, I mean, it's a little bit of debit. And it is also going to be very good at the money.

I'm sorry, I'm not able to answer that question. I mean, I think that it's, I have no comments.

Sorry, no problem. Take care. Thank you. I didn't know much about it. I'll give it to you.

Thank you. Anyone who wishes to ask questions, may please press star and one now. The next question is from the line of Samir Weiss from Premier Apps Ltd. Please go ahead.

Yeah, hi. This is related to one of the investments that I have done via preferential shares, probably 16 months ago. I was just wondering, are you planning to allot any dividends to the shareholders, or how is it? Because I just got the answers that you would not comment on the share prices, that's not going up since almost. I would just like to know whether you are going to, after this profit, are you going to give any dividends, a lot of the dividends to the shareholders?

Yeah, for the current year, sir, we've decided not to distribute a dividend because I think the current priority is investing in the growth of the business. We are seeing significant opportunities for the ramp-up of, you know, the Jean Gusset brand, and, you know, it requires capital expenditure to fund the retail store expansion. And the other priority is obviously debt repayment. As you saw in the last quarter, we've repaid 120 crores of debt, and we would continue to do so. So I think once we get to a zero net debt position, we would commence a dividend distribution for the share of us.

So just to understand, how do you comfort the investors, you know, who have been invested in your portfolios for the last few months or few quarters? And, you know, definitely we are in the negative returns right now, more than 50%, around 50%, 35%, 50%. So how are you thinking to comfort them or how to encourage them to still stay, hold the shares? And, you know, how is it? Like, how do you give them comfort zone?

Yeah, so, sir, our job as management of the company is to grow the business and, you know, increase profitability of the company. I mean, it's... And, you know, we understand and, you know, respect the fact that you've been holding the shares for about 16 months. And, you know, obviously, all market conditions are not under our control. What's under our control is to run the business well, run it efficiently, allocate capital well, and continue to grow the profits of the company, which we are later focused on doing. And I think that in the short run, while the market may be a popularity contest, in the long run, if you grow earnings and continue to deliver returns, I think that the market will catch on to the fact that this stock is undervalued and at some point realize the true potential. Hopefully, it happens sooner than later, but really, our job as management is to ensure that we continue to execute on our plans to grow the company and grow the profitability of the business. Okay.

I mean, yeah, just on that note, because, you know, you said the market conditions have not been favorable, but the peers have been growing much better, you know, and, you know, the market has been favorable for them. Is it some kind of, you know, Lose on faith, on kind of no investment is happening, no one is buying the stock, you know, what is it? Is the promoter themselves increasing the stake? How is it, I mean, in the future, how do you think is going to shape the, you know, investors' portfolio?

Sorry, I don't follow your question.

What is the question, sir? I mean, I can't comment. I mean, I mean, I mean, are promoters planning to buy back shares and increase the stake? Or how is it?

As I said, sir, the current priority is to continue to grow the company and become zero net debt, which we expect in the next 12 to 24 months we will get there. Our goal is to increase profitability by 25 to 30% each year for the next two to three years. We've outlined a plan to grow our direct-to-consumer business to about 1,000 crores, and as I've mentioned, the EBITDA margins on that are 15% to 20%. So there is a meaningful plan to grow the bottom line of the company, and obviously, based on capital allocation and when we get to zero net debt, the company may buy back shares of the company as well. But these are not decisions that I can take without the board's consent, and this is something that will be disclosed in due course of time.

This is the last question. You said about the zero debt. Do you forecast any period where you will be zero debt?

As of right now, we have around 200 to 250 crores of net debt. Our expectation would be that over the next two years or so, we should be at a zero net debt position.

Okay. Thank you so much.

Thank you. You may please press star and want to ask questions. The next question is from the line of Divyansh Thakur from Pinterest Capital. Please go ahead.

Sir, congratulations on a great side of numbers. So, as we have been focusing on the international market, so just I wanted to understand, you know, that how are we looking at joint dosage expansion that, you know, you have mentioned that we are going to open at six retail footprint increase to six boutique locations. If you can just provide some clarity on that and how are we looking at that market? Is it growing? Is it growing fast?

Yeah, yeah. So, you know, thank you. And essentially, I think, you know, our direct-to-consumer business, which we started three years ago, has grown meaningfully. And, you know, going forward, I want to say it's going to be a very important and meaningful part of our growth strategy. You know, we have two stores currently, and each of them contribute about 30 crores in revenue. And it's an extremely lucrative and profitable business model. Each store contributes about 8 to 10 crores to the bottom line. And the plan really is to open four stores in the current year in four major metropolitan areas. So, at the end of FY27, we should be at six locations, and, you know, these Jean Doucet locations should add meaningfully to the bottom line of the company. Jean Doucet, you know, as a reminder, is a great grandson of Louis Cartier, and he runs. We run the most premium luxury lab diamond brand in the world, selling lab diamond engagement rings for an average price of about 8 to 9 lakh rupees. The unit economics of this business are extremely positive, and we're very optimistic about growing the business of John Gusey and our direct-to-consumer business over the next three years to a much more meaningful number from where we are today.

Okay, sir, that's really great to hear. Sir, also, I want to understand that, you know, how does our, sorry, I am new to the company, but, you know, how does this hedging policy works? Because, you know, we have seen that there's a great fluctuations in the currencies. So, like, how does it work? How do we hedge it as our revenue is mostly based out of the country?

Yeah, Darshan, you want to answer that question?

Yeah, yeah. So on the currency front, a lot of our sort of inputs such as gold as well as diamonds are also sort of purchased in US dollars itself. So, you know, that is sort of a compensating hedge that we have against our revenues. And for the INR part, we take forward contracts with banks to the extent of our INR exposure. So, at any given point of time, we are more or less completely hedged as far as our exposure to currency markets is concerned. Okay.

Sir, also, I wanted to ask that, so, you know, we have seen that you are also looking at inorganic growth opportunities in the T2C segment. So, have we identified something? Is this something that management is evaluating? And what are the metrics that we look at when we are searching for that company? What are the things that do we need as a company, you know, so that the integration becomes much more important, I assume, like?

Yeah. So, you know, we've actually, over the last... Five to six years, built our company through inorganic acquisitions. It began really with the acquisition of JGEMS, which was the Disney licensee, and then with the acquisition of BitClarity in 2022 and John Gusset in 2025. I think we essentially look for an undervalued asset that we can grow meaningfully. We've successfully grown each of the three acquisitions that we've done between three and five times over the preceding four to five years after acquiring the brands. So we look for companies which have a brand. We're looking for inorganic opportunities only in the direct-to-consumer-slash-branded space. Look for reasonable valuation and in areas where we can... Add value and grow the business meaningfully so as to be accredited to shareholders. So these are the few metrics that we look at. And, you know, we've looked at brands that have been underperforming relative to their potential where we've been able to add value and grow the brands meaningfully. To give you an example, when we acquired WithClarity, WithClarity was doing around 40 crores of sales four years ago. We've since then grown the brand to almost 200 crores, which is about 5x in a four-year period. So we look for underperforming brands that we are able to add value to and grow those businesses and turn them to profitability.

Okay, so this is a last question from my answer. So, you know, you have also mentioned that in fiscal year 27, we have some strategic priorities, and in that there is a point that, you know, there is a huge potential of fully capitalizing on the potential of licensed grants by our omni-channel approach, if you can just, you know, elaborate that point.

Yeah, so, you know, as you know, we are sort of the exclusive fine jewelry licensee for Disney, which has been a meaningful growth driver for us in the past years. And, you know, I think that the focus primarily on the licensed brands wasn't the... We're selling through retail channel partners, and over the last few months, we've been focusing on the direct-to-consumer channel for our licensed brands. The website is called Enchanted Disney Fine Jewelry. And because of this focus, we've been seeing 30 to 40% organic growth in this channel. And, you know, we feel that as part of our licensing business, the enchanted Disney Fine Jewelry business can grow meaningfully from here. And, you know, in addition to the two brands, two major brands that we own, the licensing business also has significant potential to grow on the direct-to-consumer channel.

Yes, sir. Okay, I will join back the queue, and thank you so much for answering, and all the rest for all your future. Thank you, sir.

Thank you. Thank you. Before we take the next question, a reminder to all the participants, Satchima, please press star and want to ask questions. The next question is from the line of Dhaval Pandya from Adhiza, India. Please go ahead.

You have already answered my question.

Thank you very much.

Thank you. You may please press star and want to ask questions at this time. Paraspins who wishes to ask questions may please press star and want now. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you and over to yourself.

Thank you. I hope we've been able to answer all your questions. If 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 once again for your continued support.

Thank you, members of the management. On behalf of Dalit Capital, that concludes this conference. We thank you for joining us and you may now disconnect your line. Thank you.