RGL - Renaiss. Global

📊 NSE: RGL 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 11:49

💰 Financial Performance

Revenue Growth by Segment

The Direct-to-Consumer (D2C) segment grew 43.1% YoY in Q2 FY26, reaching INR 60.0 Cr. Within D2C, the US market grew 60.1% YoY to INR 57.6 Cr, while the India market declined 59.6% to INR 2.4 Cr. Overall group revenue for Q2 FY26 grew 40% YoY, partly inflated by INR 75 Cr in bullion sales. Customer brands (B2B) contributed 77% of H1 FY26 revenue, with Owned Brands at 12% and Licensed Brands at 11%.

Geographic Revenue Split

The US remains the dominant market, with US D2C brands growing 60% YoY in Q2 FY26. The group maintains sales subsidiaries in the US, UK, and UAE, with manufacturing facilities in Mumbai, Bhavnagar (Gujarat), and the UAE. Revenue for the nine months ended December 31, 2024, was INR 1,567 Cr.

Profitability Margins

Operating margin improved to 8.6% in FY24 from 7.81% in FY23 due to a shift toward high-margin segments. PAT margin was 3.49% in FY24 (INR 73.13 Cr) compared to 3.90% in FY23 (INR 87.31 Cr). D2C EBITDA margins expanded significantly to 12.1% in Q2 FY26 from 8.8% in Q2 FY25.

EBITDA Margin

Group EBITDA increased 23.3% YoY to INR 43.1 Cr in Q2 FY26. D2C EBITDA grew 96% YoY to INR 7.2 Cr. Lab-grown diamond margins in the D2C channel are approximately 13-14%, while B2B margins for the same products are lower at 7-8%.

Capital Expenditure

The group has no major capex planned over the medium term. Liquidity is supported by free fixed deposits of over INR 50 Cr and investments in shares/mutual funds totaling INR 111 Cr as of December 2024.

Credit Rating & Borrowing

CRISIL maintains a 'Stable' outlook. Interest coverage ratio was 2.97 times for FY24 and improved to over 3.25 times for the nine months ended December 31, 2024. The group targets reducing gearing to sub 0.30 times by March 31, 2025, from 0.47 times in March 2024.

⚙️ Operational Drivers

Raw Materials

Key raw materials include polished diamonds (natural and lab-grown), gold, silver, platinum, and semi-precious stones. Diamond-studded jewelry accounts for 85-90% of total revenue.

Import Sources

Sourced globally to support manufacturing in Mumbai, Bhavnagar, and the UAE. Bullion was specifically sold to third-party factories in the UAE for country-of-origin manufacturing requirements.

Key Suppliers

Not specifically named, but the group maintains long-standing relationships with global suppliers built over three decades of promoter experience.

Capacity Expansion

Not disclosed in absolute units; however, the group sold its gold segment in July 2024 to rationalize operations and focus on higher-margin diamond jewelry, which is expected to improve overall operating efficiency.

Raw Material Costs

Raw material costs are highly volatile; a 75 Cr bullion sale in Q2 FY26 was recognized as revenue due to accounting rules but carried zero margin as it was a raw material supply to a processor, leading to temporary gross margin compression.

Manufacturing Efficiency

Operating efficiency is expected to improve following the divestment of the gold segment in July 2024. The group focuses on finished jewelry rather than just cutting and polishing to capture higher value-add.

Logistics & Distribution

Distribution costs are managed through sales subsidiaries in the US, UK, and UAE to ensure direct market access and better margin retention in the D2C segment.

📈 Strategic Growth

Expected Growth Rate

78%

Growth Strategy

The strategy focuses on scaling the D2C segment, which has a 4-year CAGR of 78%. This involves growing owned brands like Irasva and With Clarity, leveraging licensed brands (Disney, Marvel), and expanding digital e-commerce capabilities. The group is also transitioning to higher-margin lab-grown diamonds in the D2C channel.

Products & Services

Wholesale and retail manufacturing of jewelry in gold, silver, and platinum, studded with polished diamonds (natural and lab-grown), semi-precious, and precious stones.

Brand Portfolio

Jean Dousset, Irasva, Jewelili, Everyday Elegance, With Clarity, Marvel, Disney, NFL, and Star Wars.

New Products/Services

Expansion of lab-grown diamond jewelry offerings which now command 13-14% margins in the D2C segment.

Market Expansion

Aggressive expansion in the US D2C market, which saw 60% growth in Q2 FY26. The group is also focusing on the Indian domestic market through brands like Irasva.

Strategic Alliances

Licensed associations with global brands including Marvel, Disney, NFL, and Star Wars to drive branded jewelry sales.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward lab-grown diamonds and D2C digital channels. RGL is positioning itself as a high-margin branded player rather than a generic manufacturer to counter the 6% margin floor seen in generic segments.

Competitive Landscape

Highly fragmented industry with low entry barriers and intense competition from both organized and unorganized players.

Competitive Moat

Moat is built on 30+ years of promoter experience, established relationships with marquee clients, and a portfolio of licensed global brands (Disney, Marvel) which are difficult for unorganized players to replicate.

Macro Economic Sensitivity

Highly sensitive to US consumer demand and global economic conditions, as a significant portion of revenue is export-oriented.

Consumer Behavior

Increasing consumer preference for branded jewelry and lab-grown diamonds, particularly in the US market, is driving the group's D2C strategy.

Geopolitical Risks

Potential US tariff changes are a key monitorable; the group has proactively shifted manufacturing locations to mitigate this risk.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to international trade norms and country-of-origin manufacturing regulations, particularly for exports to the US from the UAE and India.

Environmental Compliance

Not disclosed in absolute INR values.

Taxation Policy Impact

Not disclosed in specific % terms.

Legal Contingencies

The company has a pending application for the reclassification of certain promoters (Mr. Amit C. Shah, Mr. Bhupen C. Shah, and Mrs. Pinky D. Shah) to the public category, which is awaiting stock exchange approval.