Renaissance Global Limited

Financial Performance Highlights

Full Year FY26 Performance:

  • Revenue grew 29% year-over-year to INR 2,572 crores
  • EBITDA increased 22% to INR 204 crores
  • Profit After Tax before exceptional items grew 36% to INR 100 crores
  • PBT before exceptional items grew 45% to INR 124 crores

Q4 FY26 Performance:

  • Revenue before bullion sales grew 33% year-on-year to INR 686 crores
  • EBITDA grew 40% to INR 57 crores
  • PBT before exceptional items grew 83% to INR 36.5 crores

Operational Highlights

US Direct-to-Consumer Business:

  • US D2C revenues grew 44% to INR 275 crores for FY26
  • EBITDA margins improved to 12.6% in FY26 from 11.3% in FY25
  • Each Jean Dousset store generates INR 30-35 crores in annual sales
  • Company expects US D2C revenues to grow 35-40% organically to INR 375 crores in FY27

Cost Optimization:

  • Achieved approximately INR 40 crores in annual cost savings through operational initiatives
  • Savings realized while integrating Jean Dousset acquisition and expanding retail presence

Working Capital Management:

  • Debtor days reduced from 124 days to 109 days
  • Inventory days reduced significantly from 169 days to 122 days
  • Improved working capital controls and supply chain efficiencies

Balance Sheet and Capital Management

Debt Reduction:

  • Reduced gross debt by approximately INR 123 crores in Q4 FY26 through improved working capital management
  • Current net debt position: INR 200 crores
  • Total debt: INR 450 crores
  • Cash and investments: INR 200 crores (INR 100 crores cash + INR 100 crores investments)
  • Net debt-to-equity ratio: 0.15-0.2%
  • Target to reach zero net debt position in next 12-24 months

Capital Allocation Priorities:

1. Investment in business growth (particularly Jean Dousset expansion)

2. Debt repayment

3. Dividend distribution only after reaching zero net debt position

Strategic Initiatives and Expansion Plans

Jean Dousset Expansion:

  • Currently 2 stores operational in US
  • Plan to open 4 additional stores in key metropolitan luxury markets in FY27
  • Target of 6 total Jean Dousset locations by end of FY27
  • Each store contributes INR 8-10 crores to bottom line
  • Average selling price: INR 8-9 lakhs per lab diamond engagement ring

Long-term Targets:

  • Build INR 1,000 crores direct-to-consumer brand by FY29
  • Achieve 20-30% annual profit growth in coming years
  • D2C business expected to deliver 15-20% EBITDA margins

M&A Strategy:

  • Continue exploring strategic opportunities in D2C space
  • Focus on undervalued assets that can be grown 3x-5x post-acquisition
  • Previous successful acquisitions: Jay Gems (Disney licensee), With Clarity (grown from INR 40 crores to INR 200 crores in 4 years), Jean Dousset

Other Business Updates

Asset Status:

  • Bhavnagar land not yet sold
  • Investments in Indian and US stock markets still held (INR 100 crores value)

Hedging Policy:

  • Inputs (gold, diamonds) purchased in US dollars providing natural hedge
  • INR exposure hedged through forward contracts with banks
  • Company maintains essentially complete currency hedge coverage

Licensed Brands Strategy:

  • Focus on omnichannel approach for Enchanted Disney Fine Jewelry business
  • Significant growth potential in licensing business through D2C channel

Management Commentary

Management emphasized focus on operational execution, profitability improvement, and balance sheet strength. The company is transitioning toward a higher-margin, brand-led, B2C-focused business model with particular strength in the US luxury market through the Jean Dousset brand.