RENAISSANCE GLOBAL LTD (NSE: RGL) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Sumit Shah — Chairman and Global Chief Executive Officer
Darshil Shah — Managing Director
Analysts:
Unidentified Participant
Ritesh Gandhi — Analyst
Masjid Ahmed — Analyst
Shrut Bhayani — Analyst
Pawan — Analyst
Shashank Jain — Analyst
Presentation:
Unidentified Participant
Sa. Sa. Foreign. Ladies and gentlemen, good day and welcome to Renaissance Global Limited Q3 and 9M F526 earnings conference call. As a reminder, all participant lines will be the listen only mode and 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 touchstone phone. Please note that this conference is being recorded. I now hand the CONFERENCE over to Mr. Palash Kavli. Thank you. And over to you, Mr. Kavli.
Unidentified Participant
Thank you. Good afternoon everyone. I welcome you all on behalf of Noama wealth and Merlin Capital. I thank the management of Renaissance Global Limited for the opportunity to host their Q3FY26 earnings call. We have with us today Mr. Sumit Shah, Chairman and Global CEO and Mr. Darshil Shah, Managing Director. I will now hand over the call to Mr. Sumit Shah to take us through the quarter. Thank you all. And over to you, Sumit Sir.
Sumit Shah — Chairman and Global Chief Executive Officer
Good afternoon everyone and thank you for joining us today. Q3 and 9 months FY26 represents a meaningful milestone in Renaissance Global’s evolution into a brand led consumer centric global jewelry platform. The transformation we embarked upon a few years ago is now clearly visible in our financial performance with stronger revenue growth and expanding profitability and improving capital efficiency. Let me begin with revenue momentum. In Q3, our core revenue excluding bullion sales grew 16% year over year to 824 crores. For the first nine months of FY26, core revenue increased 28% to 1886 crores. This sustained growth reflects robust business growth.
Despite significant headwinds on account of tariff and metal price increases. Our direct to consumer business continues to outperform. In Q3, US D2C revenues grew 50% year over year to 89 crores. For nine months, US D2C expanded by 50% to 220 crores, placing US at an annualized run rate of approximately 300 crores. Importantly, this is not just volume led growth. It’s high quality growth driven by premium positioning, own brands and deep consumer engagement. Encouragingly, revenue growth is translating into Stronger profitability. In Q3, PBT increased 31% to 42 crores, demonstrating improved operating leverage. For nine months, PBT grew 33% to 87 crores.
Sumit Shah — Chairman and Global Chief Executive Officer
Adjusted. PAT increased 36% year over year to 69 crores. The performance reflects disciplined execution, margin resilience and sharper capital allocation. Even as we continue investing in long term growth engines, strategically, two structural drivers are reshaping Renaissance. First the Accelerated Shift towards OWN Brands OWN brands have scaled multiple fold over the past three years. They are not only growth engines but also structurally margin, accretive, capital efficient and strategically defensible. Second premiumization of our D2C portfolio our investment in Jean Doucet adds a high margin luxury player to our US D2C platform. We’re executing on plans to expand from two to five stores by end of calendar year 2026.
This strengthens our positioning in bespoke craftsmanship and luxury lab diamonds, a category with strong structural tailwinds. As we look ahead, we anticipate some short term turbulence driven by fluctuations in metal prices affecting both pricing and demand and ongoing geopolitical uncertainties. However, our long term priorities remain clear. Strong revenue growth across owned D2C brands Drive operating leverage through scale and cost optimization accelerate D2C expansion both organic and inorganic Improve roe and ROCE towards mid 20s levels enhance free cash flow generation and balance sheet strength the renaissance today is structurally different from the past. We are transitioning from a volume led exporter to a premium brand led consumer focused jewelry platform.
The Runway ahead is visible, multi year and compelling. With that, I’ll hand it over to Darshal to walk you through the financial performance in greater detail.
Darshil Shah — Managing Director
Thank you Sumit and good afternoon everyone. I will briefly take you through the key financial highlights for Q3 and nine months of FY26. Starting with Q3 FY26 performance, revenue from operations excluding bullion grew 16% year on year to 824 crore reflecting healthy underlying demand momentum. EBITDA for the quarter increased 19.6% to 63 crores and margin stood at 7.7% demonstrating operating leverage despite continued investments in growth initiatives. PBT grew 31.4% to 42 crores and PAT grew 36.5% to 33 crores reflecting improved profitability conversion and disciplined cost control. Moving to the nine month performance, revenue from operations stood at 1886 crores up 28% year on year.
EBITDA increased 247 crores with margins at 7.8% and the growth is 16.8% year on year. Adjusted PBT grew 33% to 87 crores and adjusted PAT increase 36.6% to 70 crores. This growth reflects scalability of our operating model and strong execution across segments. From a segment perspective, our own brands particularly D2C delivered robust growth in improving profitability in the US market. D2C revenue grew 39% year on year to 220 crores, D2C EBITDA grew 92% year on year with margins expanding to 11% from 8% last year. Additionally, finance costs declined year on year for nine months. FY26.
Overall, the financial performance this quarter reflects strong and consistent revenue growth. Improving operating leverage, better conversion of EBITDA to bottom line profits, continued focus on disciplined capital allocation. We remain confident in sustaining this trajectory as we move into the final quarter of FY26 and beyond. Thank you.
operator
Speakers. Shall we open the line for questions?
Sumit Shah — Chairman and Global Chief Executive Officer
Yes, please.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ritesh Gandhi with Discover Capital. Please go ahead.
Ritesh Gandhi
I said, you know, just wanted to understand any potential implications which happened on margins because of the tariffs and how the, and is the normalization of the tariffs going to help us? Are we like neutral? Are we benefited? Just want to understand that first.
Sumit Shah
Sure. So I think that, you know, we’ve established a manufacturing facility in the Middle east and you know, this obviously means that there is an ongoing cost impacting margins currently on an ongoing and on an ongoing basis. You know, we believe that this is the most efficient way for us to move forward. So you know, the India tariffs going to 18% really do not have any bearing on our company because we’ve got a CBP approved process whereby our country of origin is uae.
Ritesh Gandhi
Got it? Understood. So we don’t have any existing run rate on the margin is reflective of the extra expenses to buy from which we are running the operation now. That’s right. Got it, got it. So the other question was, you know, you know, if you could highlight how much is is the gross and a net debt right now and how much it wasn’t it the previous quarter?
Sumit Shah
You know, I don’t have the numbers in front of me, but I can have someone from the, the IR team come back to you with the number.
Ritesh Gandhi
Okay, okay. Okay, fine. Okay. And the other question was just want to understand this growth which we’ve had is obviously extremely impressive. Just want to understand what’s actually driving this growth because obviously when we look at some of the industry players globally, they’re not having these kind of growth. I just want to understand the how we should be looking at it. And, and if there’s any Guidance you can give us with regards to growth for the year ahead?
Sumit Shah
Yes. So I think that our growth effectively is about 15, 16% which we believe is sustainable. I think the headline numbers shows 35% revenue growth and that includes one time bullion sales which will continue for one more quarter and they will stop because of our UAE manufacturing and some amount of outsourcing there. There was some element of bullion sales. So I think the revenue growth is 16% and bottom line obviously is growing faster because of two reasons. One is we did a major cost saving initiative about a year ago which we started that went into Q1 of this year and the resulting cost savings as well as the shift in margins to so shift in business to D2C.
Ritesh Gandhi
And, and the bullion sales which we did. How large were the profits from that or 000-000-000. I think it was essentially to facilitate manufacturing. Got. Okay, I’ll just rejoin the queue for the other question.
operator
Thank you. Next question comes from the line of Sudhir Bera with Bera family office. Please go ahead.
Unidentified Participant
Yeah, good afternoon sir. See as a shareholder we are disappointed with the, with the result which you have you know declared last three quarters you have been saying that we have saved 40 crore but nowhere it is seen where you have saved 40 crore because margin has never improved. If you see this year, even this quarter margin operating profit which is just 7% which is less than what it was like 2, 3/4 back. So from where you have saved 40 crore I am not able to understand number one. And then second revenue has also. You have shown good growth in the revenue which is very nice to see that kind of growth but that operating leverage has not kicked up and that is not.
We cannot see on the, on the bottom line that that is happening. And D2C brand which also has grown well under your able leadership. But then it is somehow not reflecting in the bottom line. So can you explain how it is happening and what is the future guidance can you give on the profitability front and EBITDA front?
Sumit Shah
Yeah, so I think if you take the 9 months expenses x of advertising you will see that the savings are 36 crores. So I think that just please go through the numbers carefully and you will see that the expenses have gone down year over year. That’s number one. Number two, you know I think that setting up manufacturing facility in the Middle east has involved some amount of expenses and which was essentially something that happened in the August, September, October period. And there were expenses that we had budgeted setting up a factory in A short timeline involved expenses that could not have been foreseen a few quarters ago.
So I think there are a few puts and takes. I think that the fact that the PBT margin has gone up from last year, I’m not sure you know how you’re looking at it. Because the right way to look at it is to exclude the bullion sales because the bullion sales is increasing the top line. So if you take a 16% increase in revenue, you know PBT margins have gone up by 31% on 16% revenue growth.
Unidentified Participant
Operating profit margin that has gone down.
Sumit Shah
The operating profit margin in this quarter is higher than it was one year ago.
Unidentified Participant
No, but last two, three quarter if you see it has not improved. In fact it has, it has gone down actually if you really see the operating margin and the pure screener, may I have seen that it has come down?
Sumit Shah
Yeah. Because you are in the screener the bullion sales for the two quarters are included. So what I am asking you to do is to look at the sales X of the bullion and once you do that the margins have actually increased.
Unidentified Participant
Okay. Okay.
Sumit Shah
Yeah,
Unidentified Participant
fair enough. So what is your guidance going forward as your BTC sales is going to improve much more than your other verticals? So what is the guidance of margin? Will it be double digit kind of margin we will be able to see next year?
Sumit Shah
Yes, I think as we’ve maintained, I think that as the direct to consumer proportion goes up, margins will increase and our endeavor definitely is over a 2, 3 year period to get to double digit margins so that doesn’t change. I think that with the introduction of the tariffs in August there has been volatility in this quarter and the profit numbers are slightly below our expectations. But I think given the circumstance and the short period in which we had to deliver the quarter, I think that our team did an exceptional job of delivering for our customers and improving margins along the way.
Our long term vision of improving direct to consumer business, doubling that and, and making that, you know, 20 to 25% of our sales remains and we continue to work towards that objective.
Unidentified Participant
And sir, my last question is about working capital, our debtors days. Can you throw some light on that what it is as of December? Yeah. So I think that the debtor days as you know, as we’ve maintained are in and around 90 days or so and they’ve been stable at that number. Great.
Unidentified Participant
Thank you sir, thank you for the opportunity and all the best.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a Question. Once again, a reminder to all the participants that you may press Star and one to ask a question. Next question comes on the line of Divi Kausar with Sukhkam Ventures. Please go ahead.
Unidentified Participant
So what would be our inventory days at the end of nine months? Mr. Kosar, sorry for interrupting. We cannot hear you. Can you come in the range and talk? Hello, Am I audible?
Sumit Shah
Yes, please go by.
Unidentified Participant
Yeah, I wanted to ask what would be our inventory days in the first. At the end of the first nine months?
Sumit Shah
Darshal, would you have that number handy?
Darshil Shah
Yeah, it will be in the range of around 45 days.
Unidentified Participant
Okay. And. Okay. And sir, what would be the bullion sales? What would be the trajectory in the, in the fourth quarter?
Sumit Shah
Yeah, so I think in the fourth quarter we expect to have about a month, month and a half of bullion sales. So I would assume that it would be probably around 80 and then it will, it will wind down from Q1 onwards because, you know, we were outsourcing our manufacturing for a few quarters. Our own manufacturing facility is now ready and operational. So around the 20th of February, bullion sales would stop.
Unidentified Participant
Okay, thank you so much.
operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. Next question comes from the line of Ritesh Gandhi with Discover Capital. Please go ahead.
Ritesh Gandhi
Hi. You’d indicated you’d expected ROCs of about 20% or going ahead and we are aspiring towards that. Just wanted to understand how we expect to achieve this in terms of the drivers of that.
Sumit Shah
So I think, you know, as the proportion of direct to consumer goes up, you know, I think our direct to consumer business is actually extremely capital light. It involves, you know, it’s a negative working capital cycle business. I think as that business goes towards the 20s, we would expect our ROEs and ROCEs to inch up. And I think the 20% aspiration is more a long term aspiration over three to four years. I don’t think we are getting from where we are today to that number within a short time frame. So that’s sort of a three year goal.
And meaningfully as we scale the D2C business, we would see the ROCs go up.
Ritesh Gandhi
You know, even if we look at our actually cashless conversion cycle over the last few years, you know, it’s gone up into 24 from 23, it’s gone up from 25 to 24. We don’t have the balance sheet numbers but sort of despite our D2C becoming a higher proportion, despite us actually exiting some of the low roc Businesses. Right. We’re still sort of having a cash conversion cycle of, you know, over 300 days to 300 days.
Sumit Shah
Yeah. So I think one of the challenges obviously has been due to, you know, the tariffs getting introduced. The inventory days has increased the. This year because the manufacturing timeline itself has become significantly longer. Right. I mean, we are first buying metal in, in Dubai, buying the metal, then bringing it into India. So the working capital cycle has become longer due to this. Due to this fact. Number two is as lab diamonds become larger, are sort of, you know, payable days has become shorter because, you know, we are not buying as many diamonds because lab diamonds are lower in value.
So there are multiple puts and takes here that are kind of affecting our cash conversion cycle. But your point is well taken. I think we’re, we’re cognizant of the fact that there are, you know, some customers.
Ritesh Gandhi
Because I’m looking at your 25 numbers before any introduction of a tariff. Right. Even there we are seeing some of an increase in cash conversion versus what we would typically expect to see a reduction, as you know. Yeah. As you exited lower ROC businesses.
Sumit Shah
Yes, I was just getting to that. There are a few customers which are consignment heavy. And as our D2C business scales, you will see over the next couple of years or so us exiting those businesses. Because we’re aware that there are certain department stores which are extremely consignment heavy and they become a drag on our inventory days. So there is a conscious effort that as we scale this business, there is going to be on the B2B side certain low ROE ROC customers where the cash conversion cycles are very poor. We may need to exit and.
Ritesh Gandhi
But are those historically reasonably high on profitability? So there’s sort of ultimately the inventory maybe higher, but the EBITDA is higher or.
Sumit Shah
No, I think they are not. I think that, you know, it was a matter of sort of scale and spreading our operating overhead. I think that at the right opportune moment, you know, it would be not margin accretive after accounting for cost of capital. So we are cognizant of that. And they are, you know, there are businesses that after exiting would be kind of an offset to cost of debt.
Ritesh Gandhi
Got it. And you know, while you don’t have the exact numbers on your debt, there obviously is a slight increase in your interest rate in your December quarter compared to your September quarter. Just want to understand that, you know, despite generating reasonably good ebitda. Right. Despite effectively exiting some of our businesses which aren’t particularly attractive, you know, Is our net debt is still is in the reducing actually. So just want to understand what the reason is because we are because our highest growth is it coming in an area that’s reasonably asset light. So it isn’t even that the growth is eating up our capital.
Sumit Shah
So Q2 to Q3 is not a valid comparison because of seasonality. And as I mentioned to you, what has happened is due to the shift in business to lab grown, our payable days has gone down meaningfully. So that’s one source of funding. Working capital is funded through sort of either gold you buy in advance or diamonds are bought on credit. So payable days have gone down is kind of one reason. And I think year over year they’ve remained sort of largely stable. I think nine months interest costs are lower. Q3 to Q2 is not a fair comparison in a sense because of seasonality.
It would again go down in Q4 as compared to Q3 because a lot of our receivables are collected in January, February and March.
Ritesh Gandhi
So if we were to look at it broadly speaking, if I’m just looking at your operating free cash flow, right in the 2024 and 2025 was extremely low. Right. Just want to understand that as we look ahead, you know, is there a. Is the ebitda, when will we see a strong conversion from EBITDA to actually operating free cash flow?
Sumit Shah
So I think, you know, the attempt is, you know, as I just mentioned, you will see these as we kind of reduce exposure to customers where the cash conversion cycle is poor. I think some of these customers are not accretive in terms of returns over cost of capital. So you know, we believe that as we scale these businesses, you will see us in the following year actually scale down business with some customers. And so I mean if you look at it over a five year period, you know, there has been two challenging years. The three or four years prior to that there was significant and positive cash conversion.
So I think we acknowledge that there have been two years which have been challenging. But you know, I think as the D2C business is scaling nicely, you will see the cash conversion cycle improve meaningfully in the following financial year.
Ritesh Gandhi
And the customers which we have identified, are these like new customers or are they like customers whose like velocity of transactions has reduced? Or you just want to understand the reason or that we haven’t that the actions already been taken or is it about to be taken or how we’re looking at that.
Sumit Shah
It’s work in progress. It’s, you know, with some of them we’ve already begun the process and I think it will sort of. It will accelerate into next year.
Ritesh Gandhi
Got it. And just wanted to also as we like, as we’ve expanded our D2C business, have the, the unit economics have changed in any way in terms of the cost of acquisition of clients, in terms of the margins. We make all that. Just wanted to understand how that is playing out as we are achieving scale.
Sumit Shah
Yeah. So I think if you see the operating profit, I mean there is a meaningful improvement in the profitability which is because of all operating leverage that you’re seeing. Right. On 50% revenue growth, the operating profit has gone up by 90% in the D2C business. So that’s clearly a reflection of operating leverage.
Ritesh Gandhi
And the operating leverage is basically because of the more optimal of our fixed cost or is it some amount of optimization with regards to the cost of acquisitions, customers and overall revenue.
Sumit Shah
So I didn’t hear your question fully but I think the gist of it is that I think that it’s a combination of marketing efficiencies as well as the overhead getting spread over a much larger base.
Ritesh Gandhi
Got it. All right. And just overall as we look at the NRF market in the US are you seeing any kind of overall slowdown in market as a whole? Obviously we are okay given how small we are in terms of the overall. Okay. But just any insight if you could share on how the growth of the industry is going?
Sumit Shah
I think just our sort of understanding or reading is that it’s relatively stable and US consumer demand remains robust. We are not seeing any signs of weakness.
Ritesh Gandhi
And in terms of lab grown versus the natural is that you’ve obviously seen a large move which has happened. Is the percentage now of large actually lab natural still increasing or is it sort of stabilizing now the ratio between the two?
Sumit Shah
I think we continue to see a shift towards lab grown diamonds. I think that the trend is very clear and it will continue to accelerate.
operator
Thank you Mr. Gandhi. Please rejoin the queue for more questions. Next question comes from the line of Shashank Jain with Delhi family office. Please go ahead.
Unidentified Participant
Sir. Thanks for the opportunity. So sir, I wanted to ask that, you know, since you have been saying that we’ll be getting in D2C business in the time being. So sir, won’t our inventory go down and even like the working capital dependency as we will be getting most of the money in advance? Yes sir, that’s my first question.
Sumit Shah
Yeah, so I think you know our on the D2C business currently, you know it’s about 13% of sales as that goes, you know, to a larger number. You’re absolutely right that the net working capital days will improve for the business.
Unidentified Participant
Answer on the second question, sir. Also, how is the demand looking? Like, you know, since the gold prices and silver prices have gone up substantially and like most of our business comes from the U.S.
Sumit Shah
Yeah. So I think that, you know, the impact of that will sort of be known only in, in the current quarter and going forward. I think a lot of retailers took price increases for tariffs but not due to metal because some of them have quarterly locks and a lot of them would have inventory. As of right now, we are not seeing significant impact. But you know, time will tell. It’s something that, you know, one needs to watch carefully because it has been a very meaningful increase in the raw material.
Ritesh Gandhi
Yes, sir. And sir, what are our plans to grow the Indian store and business? As we see that Titan is also entering in this segment which gives us a big validation and also like our peers have been growing. So sir.
Unidentified Participant
Yeah. And sir, what would be the like the packed margins look for the next year considering the change in the business?
Sumit Shah
Yes. So I think as of right now our India business is wait and watch. We are not actively looking at growing it meaningfully. We are not happy with the unit economics of the business. So far in terms of pat margins, I don’t have an exact number but on the operating margins, clearly our goal would be over a two or three year time frame to go to double digits. We’re currently at approximately 8% or so and the goal would be to go to, you know, double digits over the next few years.
Unidentified Participant
Okay, thank you sir. I’ll join back in the queue for more questions.
Darshil Shah
Just a point on the inventory days. It’s 140 days as of now.
Unidentified Participant
Thank you.
operator
Yeah. A reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Majid Ahmed with Pinpoint X Capital. Please go ahead. Yes, go ahead please.
Masjid Ahmed
Yes, sir, my first question is especially I want to understand, sir, what the reason of brush noise in compression, sir.
Sumit Shah
Yeah, so I think that, you know, again, gross margin has compressed due to the bullion sales, you know, being in the numerator. I think that X of that they would not have compressed.
Masjid Ahmed
If I see our license brands and customer brands. So like how are we going for looking to sustain margins and influences?
Sumit Shah
Sorry, could you please repeat your question? I couldn’t hear your question, sir.
Masjid Ahmed
In the license brand segment and customer brand segment we are seeing margin compression happening.
Masjid Ahmed
Yeah. So I think, you know, yeah. On the licensed brands. You know, we are, we’re currently in the process of reevaluating some of the licenses that we have. We had a lot of fringe licenses which we are in the process of discontinuing to sort of focus around the core of the Disney license that we have. So we did see some degrowth and that caused some compression in margins on that business. So I think that as we reduce costs in line with the reduced margins and there are some exit costs related, related to some of these licenses, the margins have compressed.
I think over the long term we do expect the margins to stabilize. When can we expect the margins to come back to be in line with.
Sumit Shah
The numbers in the licensed brands specifically or overall? So in the licensed brands this year we are at about 13.3 versus 14.8. So I mean, we would expect that, you know, the business should, it should stabilize around the 15% number.
Masjid Ahmed
Can we expect the FY27 of next quarter?
Sumit Shah
I think it will be probably FY27 because there is some volume degrowth happening on the licensed brand segment right now due to the exit of some of the licenses. So it will probably be in FY27.
Masjid Ahmed
Finally, I just want to understand like how much capex are we planning for beyond this?
Sumit Shah
Yeah, so currently we’ve, We’ve signed up three additional locations for calendar year 26 and so the capital expenditure for those, for those three, including working capital, would be around 25 crores.
Masjid Ahmed
Finally, sir, like what type of revenue growth target are you looking for?
Sumit Shah
FY26. Yes. 2026 and 27. Yes. I think that this year, obviously, I mean, you’ve seen the growth. I mean, we’ve registered healthy growth this year. It’s a bit soon to tell for FY27. I mean, currently the momentum does remain strong. The only sort of variable here right now is the metal prices that have gone up and what impact it has on consumer demand. You know, I think that we’ll be able to get a slightly better view in a quarter. Right now I don’t have very clear visibility on FY27. I think FY26, you know, our revenues are up about 30% or so.
So we expect to close off, close off the year strong. I think FY27 is a little early to say. So FY26, we can look around 7 to 8% EBITDA.
Masjid Ahmed
Yeah, that’s where we’re currently at. Yes.
operator
Thank you. Next question comes from the line of Shrut Bayani with Ariza India. Please go ahead.
Shrut Bhayani
Yes. Hi sir. So John d’ Usay operates at significantly higher ticket sizes. So as we are going to expand. To five boutiques by the end of. 2026, can we expect blended margins of. The D2C portfolio to improve?
Sumit Shah
Yes, absolutely. I think that even in this quarter we’ve seen margins improve and we will continue to see the direct to consumer margins go up. As we expand on to say.
Shrut Bhayani
All. Right, working capital, discipline improving and these discontinued operations behind us, what is the timeline to achieve? Mid twenties, Roce?
Sumit Shah
I think I would say realistically three years is, is when we would get there. Three years.
Shrut Bhayani
All right. All right, thank you.
operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. Next question comes from the line of Pawan, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi, sir. So essentially, I mean, you know, in Q4 when we are seeing that demand is good, but then there are advent. So how should we read it? So it should be better quarter on quarter. How should we read it?
Sumit Shah
So a quarter on quarter is not really a good way to see our business because, you know, Q3 is in terms of sales volume normally the highest quarter. I mean, year over year, we should see reasonable growth. I think that would be the right way to do it. I think how demand sort of plays out going forward is yet unknown. Overall, the US Consumer remains healthy. I think as I mentioned, the variable is the metal prices going up and what impact that has on consumer demand, albeit temporarily, is not fully certain.
Pawan
Sir, it’s been like about 20, 30 days already since metal prices. What are you taking? What are the cues to take for last, say one month?
Sumit Shah
Sir, the time for our customers to pass on the price increase is a little bit longer than that because a lot of them have quarterly gold locks. And we usually have hedging positions where we protect ourselves for the quarterly gold locks. And they normally have inventory at older costs. So it takes a while for the price increases to show up at the retail consumer. So I would say 30 to 40 days is a little too soon to gauge impact on demand.
Pawan
That’s surprising actually because I mean, at least in India, I mean, if I go to purchase at a retail counter, it is the gold is at today’s price. There’s no lag effect.
Sumit Shah
Yeah, yeah, yeah. So, you know, in the US jewelry is not sold as a component basis. It’s kind of an MRP based product similar to what apparel and footwear would be. So it’s while, you know, it’s typical in India and in our Iraswa business, we Change prices every day along with gold. That’s not how it’s done in the us, UK and Canada.
Pawan
Okay. And then so and in terms of the composition of inventory generally, what is how much is metal, I mean gold and how much is stones per hour?
Sumit Shah
So I would say 50. 50 would be a reasonable ratio between metal and stones.
Pawan
Okay. So when you say 140 days, I mean that, I mean at the end of the financial year FY25, it was actually substantially higher than 140 days. So I mean, so should we end the year with similar 140 odd days or how should we think about it?
Sumit Shah
Yeah, that’s right. We are currently at 140 days. We were at 166 days as of September. So inventory has meaningfully made, meaningfully gone down. And our net working capital days has also gone down compared to the previous years and so has the debtors. You know, as I explained earlier, we’re in the process of exiting from unprofitable customers. So our net working capital days receivables as well as inventory days has gone down meaningfully quarter over quarter and year over year.
Pawan
Okay. And in terms of, John, do say, what are the timelines to open new stores?
Sumit Shah
So currently we have one store opening on July 1st, another one on September and another one in November. So there are three slated for calendar year 26.
Pawan
Okay. And I would want to presume that in your. John, do say so the gold component is very less because the swan itself is priced very high.
Sumit Shah
Yes.
Pawan
So that should not impact your revenue.
Sumit Shah
Yeah. So on the, on the direct to consumer business, we’ve not seen an impact. You know, we’ve, because we work on a zero inventory model, we obviously have to take priority prices in real time. So just to clarify, on our direct to consumer business, we have not seen a significant impact on demand due to metal. However, we have not passed on all of the metal price increases to consumers. We are doing it in a thoughtful and calibrated manner. The impact on margin is 1 or 2%. And you know, the gross margins are 65. So it is not a meaningful impact on our margins.
And on the D2C business, as I mentioned, we have been taking calibrated price increases and we have not seen a very meaningful impact on demand. What I was referring to was on the B2B side, which is kind of the larger business, a lot of retailers who have inventory have not yet taken price fully and we don’t know what the impact of demand will be from our retail partners. On the B2B basis.
Pawan
And lastly sir, during the course of this quarter there have been some shares sold by the promoters. Can you clarify why was that done? And should you reinstate your shareholding now?
Sumit Shah
You know I’ll have to get back to you. I think it was a very small number. If there was, I will have my, my IR come back to you with what the quantum was.
Pawan
Okay, okay. No, I think but you know, I mean the stock hasn’t, I mean after the fundraise the stock hasn’t done much and I mean if you, if promoters were to increase the stake that would, that would actually, you know, provide confidence to minority.
Sumit Shah
Sure. Yes, yes.
Sumit Shah
And looking forward to interacting with you more often. I think we know been despite being invested, we’ve not been able to meet you very often.
Pawan
Sure, sure. Look forward to it.
Sumit Shah
Yeah, so I’ll have put in the request. I mean please, looking forward to meet, you know.
Shrut Bhayani
Sure, sure.
operator
Thank you. A reminder to all the participants. Please. Press star and one to ask a question. Next question comes from the line of Shashank Jain, Delhi family office. Please go ahead.
Shashank Jain
Sir. Thanks for the opportunity again. So, so as we are focusing on more on the D2T D2C side. So like we have brands joint docent joy. So is there any other brand that we are looking, looking for or will be growing from these segments by these brands?
Shashank Jain
You know we’re constantly sort of on the lookout and evaluating opportunities. I think that you know clearly the ambition is to transition from a B2B company to a company that generates a large majority of their profits from direct to consumer. I think currently, you know there is enough Runway for organic growth with the brands that we have. Having said that, I think if the right opportunity comes by we are open to evaluating further acquisition opportunities.
Shashank Jain
Sir, is there any opportunities to add.
Sumit Shah
Nothing specific that I can report.
operator
Thank you so much sir and all the best. Thank you.
operator
Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and ask session. I would now like to hand the conference over to the management for closing comments.
Sumit Shah
Thank you everyone. I hope we have been able to answer all your questions. Should you need any further clarifications or if you would like to know more about the company, please feel free to contact our investor relations team.
operator
Thank you on behalf of Renaissance Global Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your line.