Q1 2027 Renaissance Global Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Renaissance Global Limited discussion on the Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 1: Ladies and gentlemen, good day and welcome to the Renaissance Global Limited discussion on Q1 FY27 Earnings Conference Call. As a reminder, all participant 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta from Centrum Broking. Thank you and over to you.

Operator: Ladies and gentlemen, good day and welcome to the Renaissance Global Limited discussion on Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded.

Operator: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta from Centrum Broking. Thank you and over to you.

Speaker #1: I now hand the conference over to Ms. Shwetha from Centrum Broking. Thank you, and over to you.

Speaker #2: Thank you, Ananya. Good day, everyone, and thank you for joining us on the Renaissance Global Q1 FY27 earnings conference call. We have with us Mr. Sumit Shah, Chairman and Global CEO; Ms. Darshal Shah, Managing Director; and Mr. Jagdeesh Bhandari, Manager, Corporate Strategy.

[Analyst] (Centrum Broking): Thank you, Ananya. Good day, everyone, and thank you for joining us on the Renaissance Global Q1 FY27 earnings conference call. We have with us Mr. Sumit Shah, Chairman and Global CEO, Mr. Darshan Shah, Managing Director, and Mr. Jagdish Bhanderi, Manager of Corporate Strategy. We would like to begin the call with a brief opening remarks from the management, followed by a question and answer session. I would like to invite Mr. Sumit Shah to make his opening remarks. Over to you, sir.

Shweta Raidas: Thank you, Ananya. Good day, everyone, and thank you for joining us on the Renaissance Global Q1 FY27 earnings conference call. We have with us Mr. Sumit Shah, Chairman and Global CEO, Mr. Darshan Shah, Managing Director, and Mr. Jagdish Bhanderi, Manager of Corporate Strategy. We would like to begin the call with a brief opening remarks from the management, followed by a question and answer session. I would like to invite Mr. Sumit Shah to make his opening remarks. Over to you, sir.

Speaker #2: We would like to begin the call with brief opening remarks from the management, followed by a question-and-answer session. Now, I would like to invite Mr. Sumit Shah to make his opening remarks.

Speaker #2: Over to you, sir.

Speaker #3: Thank you very much. Good afternoon, everyone, and thank you for joining us for Renaissance Global's Q1 FY27 earnings call. I'm pleased to share that we have commenced FY27 with strong business momentum, supported by healthy revenue growth, improved profitability, and operating leverage.

Sumit Shah: Thank you very much. Good afternoon, everyone, and thank you for joining us for Renaissance Global's Q1 FY27 earnings call. I'm pleased to share that we have commenced FY27 with strong business momentum, supported by healthy revenue growth, improved profitability, and operating leverage. During the quarter, our revenue grew by 30% year over year to INR 690 crores, while EBITDA increased by 22% to INR 50 crores. Profit after tax grew sharply at 288% year over year to INR 26 crores. This performance reflects disciplined execution across the business and reinforces our confidence in the strategic transformation of Renaissance Global from a traditional jewelry manufacturer into a global high margin branded jewelry platform. Our portfolio of three differentiated direct-to-consumer brands, Jean Dousset, With Clarity, and Enchanted Disney Fine Jewelry, provides us with a strong platform to participate in the large and attractive US luxury direct-to-consumer market.

Speaker #3: During the quarter, our revenue grew by 30% year-over-year to ₹690 crores, while EBITDA increased by 22% to ₹50 crores. Profit after tax grew sharply, at 288% year-over-year, to ₹26 crores.

Speaker #3: This performance reflects disciplined execution across the business and reinforces our confidence in the strategic transformation of Renaissance Global from a traditional jewelry manufacturer into a global, high-margin, branded jewelry platform.

Sumit Shah: This performance reflects disciplined execution across the business and reinforces our confidence in the strategic transformation of Renaissance Global from a traditional jewelry manufacturer into a global high margin branded jewelry platform. Our portfolio of three differentiated direct-to-consumer brands, Jean Dousset, With Clarity, and Enchanted Disney Fine Jewelry, provides us with a strong platform to participate in the large and attractive US luxury direct-to-consumer market.

Speaker #3: Our portfolio of three differentiated direct-to-consumer brands—Jean Doucet, With Clarity, and Enchanted Disney Fine Jewelry—provides us with a strong platform to participate in the large and attractive U.S. market.

Speaker #3: Luxury direct-to-consumer market. Jean Doucet continues to be an important growth driver within our branded portfolio. Positioned at the luxury end of the lab-grown diamond jewelry market, we are scaling the brand through an integrated digital and physical retail strategy.

Sumit Shah: Jean Dousset continues to be an important growth driver within our branded portfolio. Positioned at the luxury end of the lab-grown diamond jewelry market, we are scaling the brand through an integrated digital and physical retail strategy. Following the encouraging response to our New York store and the opening of our San Francisco store location in July 2026, we currently operate three Jean Dousset retail stores. During FY27, we intend to add four more locations. We believe this measured retail expansion will deepen Jean Dousset's presence across important luxury markets in the US, enhance customer engagement, and over time, increase the contribution of our higher direct-to-consumer margin to revenues, profitability, and earnings. With Clarity, our digital-first fine jewelry brand also continues to demonstrate strong momentum. The brand is benefiting from its established online platform, expanding customer reach, and technology-led operating model.

Speaker #3: Following the encouraging response to our New York store and the opening of our San Francisco store location in July 2026, we currently operate three Jean Doucet retail stores and, during FY27, we intend to add four more locations.

Speaker #3: We believe this measured retail expansion will deepen Jean Doucet's presence across important luxury markets in the U.S., enhance customer engagement, and, over time, increase the contribution of our higher direct-to-consumer margin to revenues, profitability, and earnings.

Speaker #3: With Clarity, our digital-first fine jewelry brand, also continues to demonstrate strong momentum. The brand is benefiting from its established online platform, expanding customer reach, and technology-led operating model.

Speaker #3: Finally, our licensed brand, Enchanted Disney Fine Jewelry, is progressing well too, supported by a renewed strategic focus and healthy growth across key channels. Together, these three brands give us a differentiated value proposition across customer segments and provide multiple avenues for long-term growth.

Sumit Shah: Finally, our licensed brand, Enchanted Disney Fine Jewelry, is progressing well too, supported by a renewed strategic focus and healthy growth across key channels. Together, these three brands give us a differentiated value proposition across customer segments and provides multiple avenues for long-term growth. Alongside the expansion of our branded portfolio, working capital optimization and cash flow are key priorities for us in FY27. The initiatives currently underway are expected to deliver working capital improvements of approximately INR 250 crores in the current financial year and generate cash flow from operations of more than INR 300 crores during the year. We expect these measures to strengthen our balance sheet, improve capital efficiency, and drive meaningful improvement in our return ratios. Looking ahead, our strategic direction remains clear. We remain committed to achieving INR 1,000 crores of direct-to-consumer revenue by FY29 with an operating margin of at least 15% from this segment.

Speaker #3: Alongside the expansion of our branded portfolio, we are focused on working capital optimization and cash flow in FY27. The initiatives currently underway are expected to deliver working capital improvements of approximately ₹250 crore in the current financial year, and generate cash flow from operations of more than ₹300 crore during the year.

Speaker #3: We expect these measures to strengthen our balance sheet, improve capital efficiency, and drive meaningful improvement in our return ratios. Looking ahead, our strategic direction remains clear.

Speaker #3: We remain committed to achieving ₹1,000 crore of direct-to-consumer revenue by FY29, with an operating margin of at least 15% from this segment. As the contribution from our higher-margin branded business increases, we expect to benefit from structural operating leverage.

Sumit Shah: As a contribution from our higher margin branded business increases, we expect the benefit from structural operating leverage. This should significantly expand our EBITDA and has the potential to drive multifold increase in the company's overall earnings over the coming years. We therefore enter the remainder of FY27 with confidence. Our growing portfolio of global brands, disciplined retail expansion strategy, focus on profitability, and continued emphasis on cash flow enhancement positions Renaissance Global well to deliver sustainable and profitable growth. Our objective remains to build a stronger, more valuable, and increasingly brand-led global jewelry business while creating long-term value for all our stakeholders. With that, I'll now hand over the call to Darshan to discuss operational and financial performance in greater detail. Thank you.

Speaker #3: This should significantly expand our EBITDA and has the potential to drive a multifold increase in the company's overall earnings over the coming years. We therefore enter the remainder of FY27 with confidence.

Speaker #3: Our growing portfolio of global brands, disciplined retail expansion strategy, focus on profitability, and continued emphasis on cash flows and enhancement position Renaissance Global well to deliver sustainable and profitable growth.

Speaker #3: Our objective remains to build a stronger, more valuable, and increasingly brand-led global jewelry business, while creating long-term value for all our stakeholders. With that, I'll now hand over the call to Darshal to discuss operational and financial performance in greater detail.

Speaker #3: Thank you.

Speaker #4: Thank you, Sumit, and good afternoon, everyone. I will take you through the key financial and operational highlights for the first quarter of FY27. We have started the year on a strong note, with healthy growth across the business, a sharp improvement in profitability, and continued progress on working capital efficiency.

Darshil Shah: Thank you, Sumeet, and good afternoon, everyone. I will take you through the key financial and operational highlights for Q1 of FY27. We have started the year on a strong note with healthy growth across the business, a sharp improvement in profitability, and continued progress on working capital efficiency. Starting with revenue, our revenue, excluding bullion sales, grew by 30% year-on-year to INR 690 crore compared with INR 530 crore in Q1 FY26. Importantly, the underlying growth was broad-based with healthy contributions from our brand and customer brand businesses. Coming specifically to our own brand, revenue increased by 29% year-on-year to reach INR 89 crore from INR 69 crore in the corresponding quarter last year. The continued growth of our owned brand is particularly encouraging as we progressively increase the contribution of our higher margin D2C business to the overall portfolio. Moving to EBITDA.

Speaker #4: Starting with revenue, our revenue excluding bullion sales grew by 30% year on year to ₹690 crore, compared with ₹530 crore in Q1 FY26. Importantly, the underlying growth was broad-based, with healthy contributions from our brand and customer brand businesses.

Speaker #4: Coming specifically to our own brand, revenue increased by 29% year on year, reaching ₹89 crores from ₹69 crores in the corresponding quarter last year.

Speaker #4: The continued growth of our owned brands is particularly encouraging as we progressively increase the contribution of our higher-margin direct-to-consumer business to the overall portfolio.

Speaker #4: Moving to EBITDA, EBITDA increased by 22% year on year to reach ₹50 crore, compared with ₹41 crore in Q1 FY26. EBITDA from owned brands grew to 11.5%, up from 10% in Q1 FY26.

Darshil Shah: EBITDA increased by 22% year-on-year to reach INR 50 crore compared with INR 41 crore in Q1 FY26. EBITDA from owned brands grew to 11.5% from 10% in Q1 FY26. PAT increased by approximately 280% year-on-year to reach INR 25.6 crore compared with INR 6.6 crore in Q1 FY26. While the previous year quarter had included a restructuring cost, the current quarter also demonstrates a meaningful improvement in the underlying profitability of the business. Profit before exceptional items grew by 40% year-on-year to INR 29.7 crore, reflecting the strength of the operating performance. Another important area of progress during the quarter has been working capital management. Our working capital efficiency improved meaningfully during the quarter, with working capital days reducing to 220 days from 253 days in Q1 FY26, representing an improvement of 33 days year-on-year.

Speaker #4: Profit after tax increased by approximately 280% year on year to reach ₹25.6 crore, compared with ₹6.6 crore in Q1 FY26. While the previous year quarter had included a restructuring cost, the current quarter also demonstrates a meaningful improvement in the underlying profitability of the business.

Speaker #4: Profit before exceptional items grew by 40% year on year, to $29.7 crore, reflecting the strength of the operating performance. Another important area of progress during the quarter has been working capital management.

Speaker #4: Our working capital efficiency improved meaningfully during the quarter, with working capital days reducing to 220 days from 253 days in Q1 FY26, representing an improvement of 33 days year on year.

Speaker #4: This is an important milestone for us and reflects the initiatives we've been undertaking across inventory, receivables, and overall capital efficiency. As Sumit mentioned, working capital optimization and operational cash flow generation remain key priorities for FY27, and we expect further progress through the course of the year.

Darshil Shah: This is an important milestone for us and reflects the initiatives we've been undertaking across inventory, receivables, and overall capital efficiency. As Sumit mentioned, working capital optimization and operational cash flow generation remain key priorities for FY27, and we expect further progress through the course of the year. Overall, Q1 FY27 reflects a healthy start to the year, with 30% revenue growth, strong growth in own brand, and 47% growth in own brand EBITDA, a sharp increase in PAT and EPS, and meaningful reduction in working capital days. We believe these strengths provide a strong foundation as we continue to scale our branded and D2C businesses while maintaining a disciplined focus on profitability, cash flow generation, and return ratios. With that, we can now move on to the question and answer session. Thank you.

Speaker #4: Overall, Q1 FY27 reflects a healthy start to the year, with 30% revenue growth, strong growth in owned brands, 47% growth in owned brands EBITDA, a sharp increase in PAT and UPS, and a meaningful reduction in working capital days.

Speaker #4: We believe these strengths provide a strong foundation as we continue to scale our branded and D2C businesses, while maintaining a disciplined focus on profitability, cash flow generation, and return ratios.

Speaker #4: With that, we can now move on to the question-and-answer session. Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone phone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, please press star and two. 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 is from the line of Ashok Shah from Eklavya Capital Advisors LLP. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, please press star and two. 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 is from the line of Ashok Shah from Eklavya Capital Advisors LLP. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, please press star and 2. Participants are requested to use handsets, etc., while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ashok Shah from Eklavya Invesco Family Office.

Speaker #1: Please go ahead.

Speaker #2: Thanks for taking my question. Sir, as first quarter was an excellent year, could we extrapolate and simulate or still growth will come more growth will come during the year?

Ashok Shah: Thanks for taking my question. Sir, as Q1 was excellent, could we extrapolate any similar or still growth will come or more growth will come during the year?

Speaker #3: Yeah. Thank you for your question. So, you know, we've begun the year with very strong revenue and bottom line momentum. We expect to continue this momentum to continue through the course of the year.

Sumit Shah: Yeah. Thank you for your question. We've begun the year with very strong revenue and bottom-line momentum. We expect to continue this momentum to continue through the course of the year. As previously communicated, we plan to exit certain business verticals and lines which are below cost of capital to optimize inventory. While revenue growth may not continue at this momentum, we expect bottom line to be equal to or greater than the current momentum that we've experienced after restructuring charges.

Speaker #3: As previously communicated, we plan to exit certain business verticals and lines that are below the cost of capital to optimize inventory. While revenue growth may not continue at this momentum, we expect the bottom line to be equal to or greater than the current momentum that we've experienced after restructuring charges.

Speaker #2: Sir, secondly, our major business in export is to the USA. So, did we get any tariff refund or something like that?

Ashok Shah: Sir, secondly, sir, our major business in export is to US. Did we get any tariff refund or something like that?

Speaker #3: Not yet. You know, we're in the process of applying for tariff refunds and, you know, we do expect to get some refunds. For tariffs, I think we will have to obviously share some of those refunds with our customers as well.

Sumit Shah: Not yet. We're in the process of applying for tariff refunds, and we do expect to get some refunds for tariffs. I think we will have to obviously share some of those refunds with our customers as well. I think we should know more in the coming quarter.

Speaker #3: So, we will—I think we should know more in the coming quarter.

Speaker #2: Sir, what could that be about? Any approximate ideas or a rough idea?

Ashok Shah: What could be that amount? Approximate idea, sir, or rough idea.

Speaker #3: We don't have that data yet. We're still in the process of getting the application together and putting it through, so we'll be able to provide more details in the coming quarters.

Sumit Shah: We don't have the data yet. We're still in the process of getting the application together and putting it through. We'll be able to provide more details in the coming quarters.

Speaker #2: Well, if I ask differently, how much tariff was paid during this tariff increase period?

Ashok Shah: If I ask differently, how much tariff was paid during this tariff increase period?

Speaker #3: So we're not ready to share the numbers yet. I would request that you wait for one more quarter before we're able to share these numbers.

Sumit Shah: We're not ready to share the numbers yet. I would request you to wait for 1 more quarter before we're able to share these numbers.

Speaker #2: Okay, thank you, and best wishes for our current year and the next three quarters. Thank you.

Ashok Shah: Okay. Thank you. Best wishes for current year, next 3 quarters. Thank you.

Speaker #3: Thank you.

Sumit Shah: Thank you.

Speaker #1: Thank you. The next question is from the line of Manpreet Arora from Arora Wealth Advisors. Please go ahead.

Operator 2: Thank you. The next question is from the line of Manpreet Arora from Arora Wealth Advisors. Please go ahead.

Operator: Thank you. The next question is from the line of Manpreet Arora from Arora Wealth Advisors. Please go ahead.

Speaker #5: Yeah, thank you, and good afternoon. Sir, first question is on the initiatives you talked about regarding reducing working capital by ₹250 crores. Now, if you can, you know, drill down a bit more on the initiatives—I think you mentioned exiting businesses and optimizing inventory.

Manpreet Arora: Yeah. Thank you and good afternoon. Sir, the first question is on the initiatives you talked about reducing working capital by INR 250 crores. If you can drill down a bit more on the initiatives. I think you mentioned about exiting businesses, optimizing inventory. If you can provide a little more details.

Speaker #5: If you can provide a little more detail, and...

Speaker #3: Yeah, yeah. So, I think the working capital initiatives are focused around two areas. One is inventory reduction, and, you know, sort of receivables as well.

Sumit Shah: Yeah. I think the working capital initiatives are focused around two areas. One is inventory reduction and receivables as well. I think that over the last 24 months, we've restructured the organization and reduced operating expenses by about INR 45 crores annually. With this reduction in manufacturing capacity, to align with the lab-grown diamond realities, we're now in a position to exit certain lines of businesses where consignment days are very high or receivable days are longer. We made a strategic decision to exit certain customers, which would actually lead to meaningful reduction in working capital. While doing that, we've ensured that this should not have any impact on our bottom line. These would be businesses where the cost of capital would be higher than the EBITDA generated.

Speaker #3: You know, I think that over the last 24 months, we've restructured the organization and reduced operating expenses by about ₹45 crores annually, with this reduction in manufacturing capacity to align with the lab-grown diamond realities.

Speaker #3: We're now in a position to exit certain lines of business where consignment days are very high or receivable days are longer. So we've made a strategic decision to exit certain customers, which would actually lead to a meaningful reduction in working capital.

Speaker #3: While doing that, we've sort of, you know, ensured that this should not have any impact on our bottom line. These would be businesses where the cost of capital would be higher than the EBITDA generated.

Speaker #3: So, these would be low-quality businesses which we plan to exit. And I think that would largely result in working capital reductions during the course of FY27.

Sumit Shah: These would be low-quality businesses which we plan to exit, I think that would largely result in working capital reductions during the course of FY27. We expect to fully realize these benefits by the end of the current financial year.

Speaker #3: We expect to fully realize these benefits by the end of the current financial year.

Speaker #5: Okay. Great. Great.

Manpreet Arora: Okay, great. Just to understand you right, we may not see a lot of revenue growth this year, we'll probably see margin expansion and better cash generation this year. Is that the right way to see it?

Speaker #3: So just to understand you,

Speaker #5: Oh, right. We may not see a lot of revenue growth this year, but we'll probably see margin expansion and better cash generation this year.

Speaker #5: Is that the right answer?

Speaker #3: Yes, yes, yes. Our expectation is that the bottom line should grow more than 30% for the year. Revenue growth may be muted because, as stated earlier, we are exiting certain unprofitable lines of business and, you know, on an annualized basis, this will result in an approximately ₹300 to ₹400 crore reduction in revenue.

Sumit Shah: Yes. Our expectation is too, that bottom line should grow more than 30% for the year. Revenue growth may be muted because, as stated earlier, we are exiting certain unprofitable lines of businesses and, on an annualized basis, this will result in an approximately INR 300 to 400 crore reduction in revenue. The customers that we are exiting would result in an INR 300 to 400 crore reduction in revenue. We don't expect this to have a meaningful impact on our bottom line. In fact, we're projecting greater than 30% growth for our bottom line for the current year.

Speaker #3: The customers that we're exiting would result in a ₹300 to ₹400 crore reduction in revenue. We don't expect this to have a meaningful impact on our bottom line.

Speaker #3: In fact, we're projecting greater than 30% growth for our bottom line for the current year.

Speaker #5: Great. So, which segment will this reduction happen in, sir? The customer brand?

Manpreet Arora: Great. Which segment will this reduction happen in, sir? The Customer Brands?

Speaker #3: It would be in the customer brands, absolutely. Yes, you know, the licensed brands and the owned brands are high-margin businesses. The customer brand segments have certain areas where the working capital requirement is very high.

Sumit Shah: It would be in the Customer Brands. Absolutely, yes. The Licensed Brands and the Owned Brands are high margin businesses. The Customer Brand segments have certain areas where the working capital requirement is very high. We focused on these specific customers where we would like to reduce exposure and reduce working capital involvement. I think it's a good time to sort of exit these businesses because raw material prices have gone up. The exit cost from inventory is also almost negligible or zero, as the value of the inventory would have gone up due to the fact that the price of gold and silver has gone up meaningfully.

Speaker #3: So we focused on these specific customers where we would like to reduce exposure and reduce working capital involvement. And I think it's a good time to sort of exit these businesses because raw material prices have gone up.

Speaker #3: So the exit cost from inventory is also almost negligible or zero, as the value of the inventory would have gone up due to the fact that the price of gold and silver has gone up meaningfully.

Speaker #5: All right, sir. My next question—thank you for that. The next question is on the licensed brands. Now, you know, we have seen that over FY24, FY25, and FY26 the revenues have come down, and also our EBITDA. Similarly, on the margins: in FY24, we were at 15.5%, then it came down to 14.5%, and now 13% in FY26.

Manpreet Arora: Okay. Thank you for that. Sir, my next question is on the Licensed Brands. We have seen that over FY24, FY25, FY26, the revenues have come down, and also our EBITDA. Similarly on the margins. On FY24, we were 15.5%, then it came down to 14.5%, now 13% in FY26. In this quarter, we are now at 10.9%. What is really happening in the Licensed Brands vertical, if you can?

Speaker #5: And in this quarter, we are now at 10.9%. So, what is really happening in the license brands vertical, if you can?

Speaker #3: Yeah. So on the Licensed Brand segment, you know, we were operating a very wide portfolio of brands, and, you know, even within this portfolio, what we've done is we've rationalized some of the licenses. The focus going forward is going to be primarily on the Disney relationship and the Disney license.

Sumit Shah: Yeah. On the licensed brand segment, we were operating a very wide portfolio of brands. Even within this portfolio, what we've done is we've rationalized some of the licenses and the focus going forward is going to be primarily on the Disney relationship and the Disney license. There are obviously some exit costs here, which we've already taken about a year or so ago. From this point, we expect the revenue to grow because of the focus on Disney, which was our largest licensing partnership. We expect this business to grow from here, from this base, and also improve back in profitability back to the 14% and 15% that we were seeing earlier. I think there has been a process of elimination of unprofitable licenses that we no longer sell.

Speaker #3: So, there are obviously some exit costs here that we should have already taken about a year or so ago. From this point, we expect revenue to grow because of the focus on Disney, which was our largest licensing partnership.

Speaker #3: We expect this business to grow from here, from this space, and also improve back in profitability, returning to the 14–15% that we were seeing earlier.

Speaker #3: So I think there has been a process of elimination of unprofitable licenses that we no longer sell. I think, you know, as emphasized in my opening remarks, I think that, you know, while the company is growing, growing at a healthy pace, I think the focus now is also on profitable growth and improving the bottom line margins.

Sumit Shah: As emphasized in my opening remarks, I think that while the company's growing at a healthy pace, I think the focus now is also on profitable growth and improving the bottom line margin. As a conscious decision, we decided to exit certain licenses and focus really on a few key licenses, which has resulted in muted growth. However, we are seeing strong momentum now, and the sales should pick up in the licensed brand segment going forward.

Speaker #3: So, as a conscious decision, we decided to exit certain licenses and really focus on a few key licenses, which has resulted in muted growth.

Speaker #3: However, we're seeing strong momentum now, and sales should pick up in the licensed brand segment going forward.

Speaker #5: All right, great. Sir, so just to summarize that, you know, we had licenses from Disney, Marvel, NFL, etc., and now we are rationalizing that and primarily Disney will be our major license.

Manpreet Arora: All right, great. Sir, just to summarize that, we had licenses from Disney, Marvel, NFL, et cetera, but we are rationalizing that and primarily Disney will be the major license.

Speaker #3: Yeah. Yes. I mean, Disney sort of encompasses multiple licenses: Star Wars, and Disney. But we're no longer pursuing NFL, Netflix, Harry Potter, and all those licenses.

Sumit Shah: Yeah. Yes. Disney sort of encompasses multiple licenses, Star Wars and Disney. We are no longer pursuing NFL, Netflix, and Harry Potter and all those licenses. It's going to be primarily focused around the House of Disney and their brands.

Speaker #3: It's going to be primarily focused around, you know, the House of Disney and their brands.

Speaker #5: Okay. Great. And, sir, if you can call out on our D2C brands, our own brands, you know, we had in our previous older presentation, we had a lot of brands mentioned there, including with Clarity, Jewelry Lily, and then Hallmark, and then Rene, but some of these if I go to, for example, if I go to Hallmark, everything shows as sold out and, you know, Rene also most of that.

Manpreet Arora: Okay, great. Sir, if you can call out on our D2C brands, our own brands. In our older presentation, we had a lot of brands mentioned there, including With Clarity, Jewelili, Hallmark, and Renae. Some of these, for example, if I go to Hallmark, everything shows as sold out, and Renae also most of that. Which are the most active brands that we are pursuing?

Speaker #5: So, which are the most active brands that we are pursuing, if you can?

Speaker #3: So, Hallmark. Hallmark is not an owned brand. Hallmark was a licensing relationship, and, you know, it's one of the ones that we've rationalized.

Sumit Shah: Hallmark is not an owned brand. Hallmark was a license.

Manpreet Arora: Right.

Sumit Shah: Is a licensing relationship and it's one of the ones that we've rationalized. Even within the owned brands, we are focusing on two major brands, Jean Dousset and With Clarity, which comprise the bulk of our revenue. We still own Jewelili as well as Everyday Elegance, but they are much smaller. The two growth brands, I think, part of the efficiency drive that we've really focused on is zero in on the brands that are meaningful. As again highlighted in my opening remarks, three brands that will be most meaningful will be Jean Dousset, With Clarity, and in the licensing segment, Disney. These three and a renewed strategic focus on these brands will allow us to expand profitability and Grow profitability going forward. The focus really will be on these three power brands, which comprise a bulk of our revenue in any case.

Speaker #3: Even within the owned brands, we are focusing on two major brands, Jean Doucet and With Clarity, which comprise the bulk of our revenue. I mean, we still own, you know, Jewelry Lily, as well as Everyday Elegance, but they are much smaller.

Speaker #3: The two growth brands—I think, you know, part of the efficiency drive that we've really focused on is to zero in on the brands that are meaningful, and, as again highlighted in my opening remarks, the three brands that will be most meaningful will be Jean Dousset, With Clarity, and, in the licensing segment, Disney.

Speaker #3: And, you know, these three—and the renewed strategic focus on these brands—will allow us to expand profitability and, you know, grow profitability going forward.

Speaker #3: So the focus really will be on these three power brands, which comprise the bulk of our revenue in any case.

Speaker #5: Okay, true. Sir, and on the next question, it's on the Jean Doucet investment. I think we have a 38.7% stake. Now, in FY20, in one of our earlier presentations, we had mentioned that in FY24, you know, Jean Doucet had Rs 85 crore of revenue, while the flagship store, Hollywood, I think, had Rs 25 crore of revenue out of that.

Manpreet Arora: Okay. Thank you. Sir, on the next question is on the Jean Dousset investment. I think we have a 38.7% stake. Now, in one of our earlier presentations, we had mentioned that in FY24, Jean Dousset had INR 85 crores of revenue while the flagship store, Hollywood, I think, had INR 25 crores of revenue out of that. The assumption is the remaining was Jean Dousset's other revenue.

Speaker #5: So the assumption is the remaining was, you know, Jean Doucet's other revenue coming from other sources?

Speaker #3: Online.

Sumit Shah: Online.

Speaker #5: Online. Okay. And now, is it possible to share the number of their revenues, or the Jean Doucet revenues, for FY25 and 26?

Manpreet Arora: Online, okay.

Sumit Shah: E-commerce.

Manpreet Arora: Now, is it possible to share the number of the revenues or the Jean Dousset revenues for FY25 and FY26? How much?

Speaker #5: How much?

Speaker #3: So, for FY20 to FY26, I think the brand after acquisition grew about 30%. And, you know, I think we've sort of clearly laid out in our presentation that each store, as we add, should add between ₹25 and ₹35 crore of sales. Currently, we have three operational stores.

Sumit Shah: For FY26, I think the brand after acquisition grew about 30%. I think we've sort of clearly laid out in our presentation that each store, as we add, should add between INR 25 and INR 35 crores of sales. Currently, we have three operational stores. The last store opened in San Francisco at the end of July, and there is four more expected to be opened during the course of the year. As the stores ramp up, so will the revenue increase, and there is a corresponding impact of increase in e-commerce sales as stores open because as awareness and visibility increases in a certain geographic area, so does the sales.

Speaker #3: The last store opened in, you know, in San Francisco at the end of July, and there are four more expected to be opened during the course of the year.

Speaker #3: So you know, as the stores ramp up, so will the revenue increase, and there is a corresponding impact of an increase in e-commerce sales, as stores open. Because as awareness and visibility increase in a certain geographic area, so do the sales.

Speaker #5: Okay. Okay. Okay. So this ₹25 to ₹30 crore of store sales is the store-level economics, right? Our share of that will be 38.7%?

Manpreet Arora: Okay. This INR 25 to INR 30 crores per store sale because the store level economics, right? Our share of that will be 38.7.

Speaker #3: No, no. We currently own 65% of Jean Doucet. We had initially made an investment to buy 38%, and we had an option to increase it to 65%, which we exercised.

Sumit Shah: No. We currently own 65% of Jean Dousset. We had initially made an investment to buy 38%, and we had an option to increase it to 65%, which we exercised. Currently, we're consolidating the entire, since it's a sort of controlled subsidiary, the revenues are recognized in full and the share that we don't own is sort of passed through minority interest in the P&L.

Speaker #3: So currently, we're consolidating the entire—since it's a, you know, sort of controlled subsidiary. The revenues are recognized in full, and, you know, the share that we don't own is sort of passed to minority interest in the P&L.

Speaker #5: Okay, thank you for that clarification. I was under the incorrect impression about the stake. And on the brand side, sir, the Disney brand—are we the exclusive licensee for you?

Manpreet Arora: Thank you for that clarification. I was under the incorrect impression about the stake. On the brand side, sir, the Disney brand, are we the exclusive licensee for you? Or is that a shared-

Speaker #5: Is that the share?

Speaker #3: Or fine jewelry, yes. For fine jewelry.

Sumit Shah: For fine jewelry, yes. For fine jewelry.

Speaker #5: Okay, thanks a lot for answering my questions. I'll go back and look here, and at all the tests.

Manpreet Arora: Okay. Thanks a lot for answering my questions. I'll go back and look at it. All the best.

Speaker #3: Thank you.

Sumit Shah: Thank you.

Speaker #2: Thank you. The next question is from the line of Patricia from Vimavana Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Prichit Shah from Vimaana Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Prichit Shah from Vimaana Capital. Please go ahead.

Speaker #4: Sure, thanks for giving me this opportunity. I just had a couple of questions. So, the first is around the consolidated margins that we have. We've observed that there's a reduction in margins—gross profit margins and EBITDA margins.

Prichit Shah: Sure. Thanks for giving this opportunity. I just had a couple of questions. First is around the consolidated margins that we have. We've observed that there's a reduction in margins, gross profit margins, EBITDA margins. Is this on account of bullion sales? If yes, will this continue to go forward?

Pritsh Shah: Sure. Thanks for giving this opportunity. I just had a couple of questions. First is around the consolidated margins that we have. We've observed that there's a reduction in margins, gross profit margins, EBITDA margins. Is this on account of bullion sales? If yes, will this continue to go forward?

Speaker #4: Is this an account of bullion sales? And if yes, will this continue to go forward?

Speaker #3: Yes. So yes, I think that, you know, in the near future, the bullion sales will continue you know, I think because of the tariff mitigation strategies we're subcontracting some of our manufacturing in the US, and in the Middle East.

Sumit Shah: Yes, I think that in the near future, the bullion sales will continue. I think because of the tariff mitigation strategies, we're subcontracting some of our manufacturing in the US and in the Middle East. The bullion sales, once you exclude the bullion sales, the margins, once normalized, have seen a little bit of a dip. I think some of this is obviously attributed to a little bit of exit cost, as indicated in some of our businesses. I think there may be a minor dip during the year, but our margins year over year are down from 7.7% to 7.2%. I think this would be comparable and like for like, this reduction is on account of the strategic choices that we've made to exit certain businesses which we've communicated earlier.

Speaker #3: So the bullion sales, I mean, once you exclude the bullion sales, you know, the margins, once normalized, have seen a little bit of a dip.

Speaker #3: I think some of this is obviously attributed to a little bit of exit cost, as indicated in some of our businesses. So, you know, I think there may be a minor dip during the year, but our margins year over year are down from 7.7% to 7.2%.

Speaker #3: And I think this would be comparable. Like-for-like, this reduction is on account of the strategic choices that we've made to exit certain businesses, which, you know, we've communicated earlier.

Speaker #4: Got it, got it. And a second question is also related to that. So if I understand correctly, our strategy is to reduce the B2B business—that is, our customers' business—and increase more towards B2C.

Prichit Shah: Got it. The second question is also related to that. If I understand correctly, our strategy is to reduce the B2B business, that is our customers business, and increase more towards B2C. This year, if we look at FY26, there was an increase and even Q1, there is an increase of 34% YoY in this segment. Are we looking at reducing it from next quarter onwards, or where do we see this de-growth would start from?

Pritsh Shah: Got it. The second question is also related to that. If I understand correctly, our strategy is to reduce the B2B business, that is our customers business, and increase more towards B2C. This year, if we look at FY26, there was an increase and even Q1, there is an increase of 34% YoY in this segment. Are we looking at reducing it from next quarter onwards, or where do we see this de-growth would start from?

Speaker #4: Now, this year, if we look at FY26, there was an increase, and even in quarter one, there's an increase of 34% to IOI in this segment.

Speaker #4: So, do we, or are we looking at reducing it from next quarter onwards, or where do we see this degrowth would start from?

Speaker #3: Yeah, I think the degrowth should start. So, you know, on a sequential basis, the revenue should go down in Q2 as well. And it will continue to, sort of, you know, taper off in Q3 and Q4.

Sumit Shah: Yeah, I think the de-growth should start. On a sequential basis, the revenue should go down in Q2 as well, and it will continue to sort of taper off in Q3 and Q4. I think sequentially, there will be a reduction in the following quarter. I think difficult to sort of time the exit because the way we've chosen to exit some of these customers is since there is some amount of consignment involved is we're letting the inventory sell down. Difficult to time it exactly, but I would say that the best way to think about it is that the revenue run rate will be lower by INR 400 crores at the end of the current financial year. It will kind of go down sequentially during the course of the year.

Speaker #3: I think, sequentially, there will be a reduction in the following quarter. But I think, you know, it's difficult to sort of time the exit because, you know, the way we've chosen to exit some of these customers is, since there is some amount of consignment involved, we're letting the inventory sell down.

Speaker #3: It's difficult to time it exactly, but I would say that the best way to think about it is that the revenue run rate will be lower by ₹400 crore at the end of the current financial year.

Speaker #3: You know, it will kind of go down sequentially during the course of the year.

Speaker #4: Got it, got it. So, thanks for this, and that's all from us.

Prichit Shah: Got it. Thanks for this, and that's all from my end. Thank you.

Pritsh Shah: Got it. Thanks for this, and that's all from my end. Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you. Reminder for all participants: please press star and one to ask a question. Participants who would like to ask a question, please press star and one.

Operator 2: Thank you. Reminder for all participants, please press star and One to ask a question. Participants who would like to ask a question, please press star and One. The next question is from the line of Dhaval Pandya from 47 Alpha Capital. Please go ahead.

Operator: Thank you. Reminder for all participants, please press star and One to ask a question. Participants who would like to ask a question, please press star and One. The next question is from the line of Dhaval Pandya from 47 Alpha Capital. Please go ahead.

Speaker #2: The next question is from the line of Thawal Pandya from 47 Alpha Capital. Please go ahead.

Speaker #5: Hello. Good afternoon. Am I audible?

Dhaval Pandya: Hello. Good afternoon. Am I audible?

Speaker #4: Yes. Go ahead.

Sumit Shah: Yes, go ahead.

Speaker #2: Yes.

Operator 2: Yes.

Operator: Yes.

Speaker #5: Yeah. Congratulations on a good set of numbers. I had two or three questions. So, can you tell me, what is the breakeven period of Jean Doucet stores?

Dhaval Pandya: Yeah. Congratulations on good set of numbers. I have two or three questions. Can you tell me what is the break-even period of Jean Dousset stores store-wise?

Speaker #5: Like store-wise?

Speaker #3: Yeah, so I think, you know, currently we've seen extremely strong momentum once we've opened the store. So, you know, obviously it's—you know, we inherited the Los Angeles store.

Sumit Shah: Yeah. I think, currently we've seen extremely strong momentum once we've opened the store. Obviously, we inherited the Los Angeles store when we made the acquisition. The New York store was opened in November of last year. I think the store sort of became profitable January onwards. Again, short history, the dataset is quite limited. Currently, the way the San Francisco store is opened and the momentum that we're seeing, we expect the store to be profitable from month two or month three onwards. Currently, based on the unit economics, we see a payback of less than one year for the JD stores. We're very optimistic and obviously we're watching the numbers very carefully as we ramp up the store rollout of Jean Dousset meaningfully.

Speaker #3: You know, when we made the acquisition, the New York store was opened in November of last year. And I think the store sort of became profitable from January onwards.

Speaker #3: So you know, again, short history. The, you know, dataset is quite limited. And currently, the way the San Francisco store has opened and the momentum that we're seeing, we expect the store to be profitable from month two to month three onwards.

Speaker #3: And you know, currently, based on the unit economics, we see a payback of less than one year for the JD stores. So, you know, we're very optimistic and, you know, obviously we're watching the numbers very carefully as we ramp up the store rollout of Jean Doucet meaningfully.

Speaker #3: But currently, as we see it, based on the limited dataset, usually the store is profitable in the second or the third month. And currently, as we see it, the payback period is less than one year.

Sumit Shah: Currently, as we see it, based on limited dataset, usually the store is profitable in the second or third month. Currently, as we see it, the payback period is less than 1 year, which is excellent numbers from our perspective and which is why the entire company is kind of focused around the rollout of the Jean Dousset stores.

Speaker #3: Which is, you know, excellent numbers from our perspective, and you know, which is why the entire company is kind of focused around the rollout of the Jean Doucet stores.

Speaker #5: And any further acquisition for the brand branch? If you have any in mind.

Dhaval Pandya: Any further acquisition for the brands, if you have any in mind?

Speaker #3: Yes. So you know, we're currently, you know, constantly evaluating new brand acquisitions. I think it's a clear strategy for us to increase the branded space.

Sumit Shah: Yeah. We're currently constantly evaluating new brand acquisitions. I think since it's a clear strategy for us to increase the branded space. Nothing to report yet, but we're clearly since the past 6 or 7 years, we've done 3 acquisitions and all of our 3 major brands that our current focus is on have been added to the company via acquisitions. If something attractive comes along, we're open to acquisitions, especially in the current year, given the fact that we expect over INR 300 crores of cash flow from operations. This allows us some financial flexibility to acquire new brands. We're open. Nothing to report yet, but when there is something to report, we'll definitely announce it.

Speaker #3: You know, nothing to report yet, but you know, we're clearly, you know, since the past, you know, six or seven years, we've done three acquisitions, and all of our three major brands that our current focus is on have been added to the company via acquisition.

Speaker #3: So you know, if something attractive comes along, we're open to acquisitions, especially in the current year given the fact that we expect over ₹300 crore of cash flow from operations.

Speaker #3: This allows us some financial flexibility to acquire new brands. So, we're open. Nothing to report yet, but you know, when there is something to report, we'll definitely announce it.

Speaker #5: Okay, and one last question. So, as you said, you're expecting ₹300 crores of operating cash flow. How exactly are we targeting that ₹300 crores?

Dhaval Pandya: Okay. One last question. As you said that you are expecting INR 300 crores of operating cash flows. How exactly are we targeting that INR 300 crores?

Speaker #3: Yeah. So I think that, as I spelled out in our presentation, we plan to reduce working capital by about ₹250 crore, between reduction in inventory and reduction in receivables.

Sumit Shah: Yeah. I think that as is spelled out in our presentation, we plan to reduce working capital by about INR 250 crores between reduction in inventory and reduction in receivables. We've identified certain customers where the working capital involved is below the cost of capital, and we've strategically made a decision to improve the quality of the business and meaningfully exit certain customers and relationships where the margins are low and the working capital intensity is high. The decisions have already been sort of set in motion, and we expect to realize these working capital benefits during the course of FY27.

Speaker #3: We've identified certain customers that you know, are where the working capital involved is below the cost of capital. And we've strategically made a decision to improve the quality of the business and meaningfully exit certain customers and relationships where you know, the margins are low and the working capital intensity is high.

Speaker #3: So the decisions have already been sort of set in motion, and we expect to realize these working capital benefits during the course of FY27.

Speaker #5: Okay, that's it from my end for the JD5 question. I'll join back with you. Thank you very much.

Dhaval Pandya: Okay. That's it from my side. I have one question. I'll join back with you. Thank you very much.

Speaker #2: Thank you. The next question is from the line of Khushi Jen from Share India Securities Limited Institutional. Please go ahead.

Operator 2: Thank you. The next question is from the line of Khushi Jain from Share India Securities Limited Institutional. Please go ahead.

Operator: Thank you. The next question is from the line of Khushi Jain from Share India Securities Limited Institutional. Please go ahead.

Speaker #6: Yeah. Hi. Thank you for the opportunity, and congratulations on the great start to FY27. Just a question on the finance cost side. We see there has been a good improvement in the balance sheet.

Khushi Jain: Yeah. Hi. Thank you for the opportunity and congratulations on great start of FY27. Just a question on the finance cost side. We see there had been a good improvement in the balance sheet, but the Q1 finance costs remain broadly flat on year-on-year basis. Assuming the targeted working capital release is achieved, when should we start seeing a meaningful decline in the interest expense, and what could be the reasonable FY27 finance cost expectations?

Speaker #6: But the Q1 finance costs remain broadly flat on your own basis. So, assuming the targeted working capital release is achieved, when should we start seeing a meaningful decline in the interest expense? And what could be the reasonable FY27 finance costs expectations?

Speaker #5: Yeah.

Speaker #3: So I think that you know, we expect to obviously you know, realize these working capital benefits through the course of this year. You know, I think so it would be difficult to pinpoint exactly you know, the cash conversion to these you know, what is sort of certain is that we definitely expect to realize these benefits by the end of the current financial year.

Sumit Shah: I think that we expect to obviously realize these working capital benefits through the course of this year. I think so it would be difficult to pinpoint exactly the cash conversion to these. What is sort of certain is that we definitely expect to realize these benefits by the end of the current financial year. I think you should structurally see a sort of improvement in operating cash flow sequentially during the course of this year. While we don't have exact numbers for finance costs quarter-on-quarter, but our expectation is that we will end the year with meaningfully lower net debt as compared to what we did one year ago.

Speaker #3: I think you should structurally see, you know, a sort of improvement in operating cash flow sequentially during the course of this year. So, while we don't have exact numbers for, you know, finance costs quarter on quarter, our expectation is that we will end the year with meaningfully lower net debt as compared to what we did one year ago.

Speaker #6: Okay, perfect. So, on the width clarity side, could you provide some more insight on width clarity’s profitability and revenue, per se?

Khushi Jain: Okay, perfect. On the With Clarity side, could you provide some more insight on With Clarity's profitability and revenue also?

Speaker #3: Yeah. So, I think, you know, Clarity is currently at a revenue run rate of about ₹220 crore, and, you know, it's growing at a healthy clip of about 20% or so.

Sumit Shah: I think With Clarity is currently at a revenue run rate of about INR 220 odd crores, and it's growing at a healthy clip of about 20% or so. It's sort of a digital-first brand, and the focus really is on growing this brand digitally. Currently, we are seeing 20% growth, and I think the profitability will be in line with sort of our segment average of about 12% to 13%. I think that with our own brand segment, we expect this profitability to increase meaningfully over time as we get operating leverage, because a lot of our fixed overhead has already been absorbed. The technology team, cataloging team, digital marketing team, there's a sort of obviously substantial team working on this. As the current margins are 11% to 13% for this brand, we expect that to scale as our operating costs scale.

Speaker #3: You know, it's sort of a digital first brand and you know, the focus really is on growing this brand digitally. Currently, we're seeing you know, 20% growth and I think the profitability will be in line with sort of our segment average of about 12 to 13%.

Speaker #3: You know, I think that with our own brand segment, we expect this, you know, profitability to increase meaningfully over time as we get operating leverage.

Speaker #3: Because a lot of our fixed overhead has already been absorbed—you know, the technology team, cataloging team, digital marketing team. There's obviously a substantial team working on this.

Speaker #3: So you know, as the current margins are, you know, 11% to 13% for this brand, we expect that to scale as our operating costs scale.

Speaker #3: Both with Clarity and Jean Doucet, you know, enjoy 60 to 65% gross margins. So I think, you know, as these gross margins flow through and, you know, growth occurs, we expect the profitability to increase over time for our direct-to-consumer segment.

Sumit Shah: Both With Clarity and Jean Dousset enjoy 60% to 65% gross margins. I think, as these gross margins flow through and growth occurs, we expect the profitability to increase over time for our direct-to-consumer segment.

Speaker #6: Perfect. Thank you so much for that, and all the best for the next quarter and the year. Thank you.

Khushi Jain: Perfect. Thank you so much for that, and all the best for the next quarter and the year. Thank you.

Speaker #3: Thank you.

Sumit Shah: Thank you.

Speaker #2: Thank you. The next question is from the line of Prateek Chaudhry from Samartya Investment Advisors, LLP. Please go ahead.

Operator 2: Thank you. The next question is from the line of Prateek Chaudhary from Samarth Investment Advisors LLP. Please go ahead.

Operator: Thank you. The next question is from the line of Prateek Chaudhary from Samarth Investment Advisors LLP. Please go ahead.

Speaker #5: Congratulations on a good set of numbers, sir. I have a few questions. First, there's a pretty big forex loss sitting in your P&L for the quarter, almost about ₹13 crores.

Prateek Chaudhary: Congrats on a good set of numbers, sir. I have a few set of questions. First one, there's a pretty big Forex loss sitting in your P&L for the quarter, almost about INR 13 crore. If you can share your thoughts on whether we can see a meaningful reduction in this number going ahead. Yeah.

Speaker #5: If you can, you know, share your thoughts on whether we can see a meaningful reduction in this number going ahead, and yeah.

Speaker #3: Yeah, Darshan, do you want to take that?

Sumit Shah: Darshil, you want to take that?

Speaker #4: Yeah. So I think the Forex loss is clearly due to the sort of the depreciation in the currency and you know, while we are hedged as far as our rupee expenditures are concerned, a large part of our sort of working capital is dollar denominated.

Darshil Shah: Yeah. I think the Forex loss is clearly due to the sort of the depreciation in the currency. While we are hedged as far as our INR expenditures are concerned, a large part of our working capital is dollar-denominated, which means that there's a natural hedge. I think it's sort of just on the accounting front, foreign exchange loss flowing through, both on the revenue as well as on the expense side. Hopefully, if the currency stabilizes around this level, we should see a meaningful reduction in the foreign exchange loss going forward.

Speaker #4: Which means that there's a natural hedge. So I think it's just, you know, on the accounting front, foreign exchange loss is flowing through both on the revenue as well as on the expense side.

Speaker #4: So I think, as I mean, hopefully if the currency stabilizes around this level, we should see a meaningful reduction in the foreign exchange loss going forward.

Speaker #5: Okay. And sir, going forward, in your presentation and remarks, you can maybe state EBITDA margins net of these forex losses.

Prateek Chaudhary: Okay. Sir, going forward in your presentation and remarks, you can maybe state EBITDA margins net of these Forex losses.

Speaker #4: Sure, we can explore that. We'll try to explore that.

Darshil Shah: Sure. We can explore that. We'll try to explore that.

Speaker #5: And for the other income, around the ₹8 or 9 crore number that was there for the quarter, were there any one-offs, or is this largely in the normal course of business, the other income we have earned this quarter?

Prateek Chaudhary: Yeah. For the other income, around an INR 8 or 9 crore number that was there for the quarter, were there any one-offs or this is largely in the normal course of business, the other income we have earned this quarter?

Speaker #4: No, there's nothing exceptional to be reported there. I think it is just in the normal course of business.

Darshil Shah: No, there's nothing exceptional to be reported there. I think it is just in the normal course of business.

Speaker #5: And any inventory losses we suffered during the quarter because of the gyration in the metal prices that we saw from Q4 end to Q1 end?

Prateek Chaudhary: Any inventory losses we suffered during the quarter because of the gyration in the metal prices that we saw from Q4 end to Q1 end?

Speaker #4: No, no. There was no inventory loss on our end. And as far as the metal price fluctuations are concerned, we are hedged on that front as well, as far as our long-term commitment to our customers is concerned.

Darshil Shah: No. There was no inventory loss on our end. As far as the metal price fluctuations are concerned, we are hedged on that front as well, as far as our long-term commitment to our customers is concerned. Even on that front, there's no major loss that flows through the balance sheet.

Speaker #4: So even on that front, there's no major loss that flows through the balance sheet.

Speaker #5: Yeah.

Speaker #3: Yeah. So I think while you know, there is while there is no loss on the metal front, you know, there is a slight bit of margin dip due to exiting certain customer lines.

Sumit Shah: Yeah. I think while there is no loss on the metal front, there is a slight bit of margin dip due to exiting certain customer lines. As we attempt to reduce our inventory and receivable during the course of the year, slight dip in margin can also be attributed to some of the exit costs as we're attempting to reduce our inventory and receivable during the course of the year. While there is no loss due to metal price increases, there is a little bit of working capital loss flowing through the P&L as we sort of reduce our working capital.

Speaker #3: You know, as we attempt to, you know, reduce our inventory and receivables during the course of the year, you know, a slight dip in margin can also be attributed to some of the exit costs as we are, you know, attempting to reduce our inventory and receivables during the course of the year.

Speaker #3: So, while there is no loss due to metal price increases, there is a little bit of working capital loss flowing through the P&L as we sort of reduce our working capital.

Speaker #5: Great. And sir, final question on your Jean Doucet venture. What are your store expansion plans for FY28? And also, would you look at, or is there an optionality to increase your shareholding above 65% in the next few years?

Prateek Chaudhary: Right. Sir, final question on your Jean Dousset venture. What are your store expansion plans for FY28? Also, will you look to or is there an optionality to increase your shareholding above 65% in the next few years?

Speaker #3: Yeah. So I think, you know, currently, our business plan is to get to seven stores by the end of the current financial year. And then, the plan would be to add six more stores in the following year.

Sumit Shah: Yeah. I think currently, our business plan is to get to seven stores by the end of the current financial year, then the plan would be to add six more stores in the following year. Currently, that's the plan for 2027 and 2028. The option to increase our share of Jean Dousset would exist if the company needed more investment. It's something that we would obviously have to explore. Currently, that's not something that has been discussed at the board level.

Speaker #3: Currently, that's the plan for '27 and '28. And, you know, the option to increase our share of Jean Doucet would exist if the company needed more investment.

Speaker #3: So, you know, it's something that we would obviously have to explore. Currently, that's not something that has been discussed at the board level.

Speaker #5: So for so maybe for your store expansion plans in FY28, you might I mean, that investment might become due, you know, for so is it possible that that is when these things could get discussed or.

Prateek Chaudhary: Maybe for your store expansion plans in FY28, that investment might become due. Is it possible that is when these things could get discussed?

Speaker #3: Yes, yes, yes. So, I think once we—once, you know, we did an initial investment of $6.5 million. And I think that, you know, as the fund utilization and retained earnings of this is discussed by the board, I mean, if there's additional need of funds, we would obviously be willing to invest more and increase the stake.

Sumit Shah: Yes.

Prateek Chaudhary: Okay.

Sumit Shah: I think we did an initial investment of $6.5 million. I think that as the fund utilization and retained earnings of this is discussed by the board, if there's additional need of funds, we would obviously be willing to invest more and increase the stake. Again, it's not something that has been discussed with the board of Jean Dousset and having sort of a third-party investor, that's something we have to discuss with the board of the company.

Speaker #3: But again, you know, it's not something that has been discussed with the board of Jean Doucet. And, you know, having sort of a third-party investor, that's something we would have to discuss with the board of the company.

Speaker #5: Great, sir. Great numbers, sir. And all the best for your future. Thank you.

Prateek Chaudhary: Great, sir. Great numbers, sir. All the best for your future. Thank you.

Speaker #3: Thank you.

Sumit Shah: Thank you.

Speaker #2: Thank you. A reminder for all participants: please press star, then one, to ask a question. Participants who would like to ask a question may press star, then one.

Operator 2: Thank you. Reminder for all participants, please press star and one to ask a question. Participants who would like to ask a question may press star and one. The next question is from the line of Manpreet Arora from Arora Wealth Advisors, a follow-up question. Please go ahead.

Operator: Thank you. Reminder for all participants, please press star and one to ask a question. Participants who would like to ask a question may press star and one. The next question is from the line of Manpreet Arora from Arora Wealth Advisors, a follow-up question. Please go ahead.

Speaker #2: The next question is from Mona Aurora from Aurora Wealth Advisors, a follow-up question. Please go ahead.

Speaker #5: Yeah, thank you for the follow-up. Sir, you highlighted the goal of reaching ₹1,000 crores from D2C by FY29. Now, just to understand: we have our own brands, which are D2C, and then we have licensed brands, which are B2B and D2C.

Manpreet Arora: Yeah. Thank you for the follow-up. Sir, you highlighted the goal of reaching INR 1,000 crore from D2C by FY29. Just to understand, we have our own brands which are D2C, and then we have licensed brands which are B2B and D2C.

Speaker #5: So, when we say D2C revenues, we're referring to D2C from our own brands and D2C of licensed brands. Are these the two segments that you're combining together to call it 1,000 crores from D2C?

Sumit Shah: Yes.

Manpreet Arora: When we say D2C revenues, we are saying D2C from our own brands and D2C of licensed brands. Are these the two that we're clubbing together to say INR 1,000 crore from D2C?

Speaker #3: Yeah. So currently, our direct-to-consumer revenues are forecast to be about ₹375 crore from our own brands, and about ₹125 crore from the licensed brands.

Sumit Shah: Yeah. Currently, our direct-to-consumer revenues are forecast to be about INR 375 crore from our own brands and about INR 125 crore from the licensed brands. The base today is around INR 500 crore for the current year. Our expectation, because the licensing business has a direct-to-consumer as well as a B2B angle, our plan is that the direct-to-consumer revenue, which would be around INR 500 crore this year, for that number, our goal is to get to INR 1,000 crore by FY29.

Speaker #3: So, the base today is around ₹500 crore for the current year. And our expectation, because the licensing business has both a direct-to-consumer as well as a B2B angle...

Speaker #3: So, our plan is that the direct-to-consumer revenue, which would be around ₹500 crore this year—for that number, our goal is to get to ₹1,000 crore by FY29.

Speaker #5: Okay. And sir, on a going forward, you know, so the customer segments that we are present is on the luxury and accessible side. And we want to grow primarily on the luxury side.

Manpreet Arora: Okay. Sir, going forward, the customer segment that we are present is on the luxury and accessible side, and we want to grow primarily on the luxury side. Is that how we should see, or we are planning to target both the customer segments? Also if you can talk a bit about the competitive dynamics of this space.

Speaker #5: Is that how we should see it, or are we planning to target both customer segments? And also, if you can, you know, talk a bit about the competitive dynamics of this space.

Speaker #3: Yeah, so sorry, I didn't really follow your question. If you could just elaborate on the first part of your question.

Sumit Shah: Sorry, I didn't really follow your question. If you could just elaborate on the first part of your questions.

Speaker #5: Yeah. So, going forward, will our focus be more on the luxury side of the customer segment? You know, will we be present across both luxury and accessible daily?

Manpreet Arora: Yeah. Going forward, will our focus be more on the luxury side of the customer segment, or we're present across both luxury and accessible-

Sumit Shah: Okay

Manpreet Arora: daily wear and-

Speaker #3: So I think, you know, we are primarily in the fine jewelry space. Having said that, we do sell a lot of silver jewelry as well.

Sumit Shah: I think, we're primarily in the fine jewelry space. Having said that, we do sell a lot of silver jewelry as well. Primarily studded with diamonds, lab diamonds, and gemstones. I don't think that we're seeing sort of a shift in the customer segments because there we are really targeting as sort of an OEM manufacturer for retailers and brands. We try to sort of create white space analysis for our customers and present some things that fit their brand. For our own brands, we sort of have a 3-tiered approach. The licensed brands have an average order value of around $400. For With Clarity, it's about $3,000, and for Jean Dousset it's $8,000. The three brands that we have target 3 different tiers of customer segments, and that's how we kind of have structured our licensed and own brands segment.

Speaker #3: But you know, primarily studied with diamonds, lab diamonds, and gemstones. So I don't think that we are seeing sort of a shift in the customer segments because, you know, there we are really targeting, as you know, sort of an OEM manufacturer for retailers and brands.

Speaker #3: And, you know, we try to sort of create white space analysis for our customers and present some things that fit their brand. For our own brands, you know, we sort of have a three-tiered approach, right?

Speaker #3: The licensed brands have an average order value of around $400. For With Clarity, it's about $3,000. And for Jean Doucet, it's $8,000.

Speaker #3: So, the three brands that we have target three very different tiers of customer segments, and that's how we have structured our licensed and owned brands segment.

Speaker #3: On the customer brand segment, we operate through the value spectrum from, you know, $50 all the way to $3,000.

Sumit Shah: On the customer brand segment, we operate through the value spectrum from $50 all the way to $3,000.

Speaker #5: Okay. Thank you very much.

Manpreet Arora: Okay. Thank you very much.

Operator 2: Thank you. The next question is from the line of Shweta. Please go ahead. Shweta, your line has been unmuted. Please go ahead. Shweta, your line has been unmuted. Please go ahead. Ladies and gentlemen, the line for Shweta has dropped. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Operator: Thank you. The next question is from the line of Shweta. Please go ahead. Shweta, your line has been unmuted. Please go ahead. Shweta, your line has been unmuted. Please go ahead. Ladies and gentlemen, the line for Shweta has dropped. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Speaker #2: Thank you. The next question is from the line of Shweta. Please go ahead. Shweta, your line has been unmuted. Please go ahead. Shweta, your line has been unmuted.

Speaker #2: Please go ahead. Ladies and gentlemen, the line for Shweta has dropped, so that was the last question for today. I now hand the conference over to the management for closing remarks.

Speaker #2: Over to you.

Speaker #3: Thank you, everyone, for participating in our conference call today. We appreciate your interest in Renaissance Global and thank you for joining us. We look forward to seeing you all on our next earnings call.

Sumit Shah: Thank you everyone for participating in our conference call today. We thank you for joining us and your interest in Renaissance Global. Look forward to seeing you all on our next earnings call. Thank you.

Speaker #3: Thank you.

Operator 2: On behalf of Centrum Broking, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Operator: On behalf of Centrum Broking, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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Q1 2027 Renaissance Global Ltd Earnings Call

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