Renaissance Global Ltd Management Discussions

Global economy

During FY 2025-26, the global economy remained resilient but uneven, supported by technology-led investment, relatively stable labour markets and consumption among higher-income households. However, geopolitical tensions, trade-policy uncertainty, volatile commodity prices and supply-chain realignment continued to affect business confidence and discretionary spending. The IMF projects global growth of approximately 3.0% in 2026 and 3.4% in 2027, with inflation expected to rise to 4.7% in 2026 before moderating to 3.9% in 2027.

Among advanced economies, the United States is expected to remain comparatively resilient, with GDP growth projected at 2.3% in 2026 and 2.2% in 2027. supported by technology investment and productivity gains. Europe is likely to experience slower growth, with El GDP projected to expand by 1.1% in 2026 and 1.4% in 2027, amid elevated energy costs and cautious consumer sentiment.

For the gems and jewellery industry, the environment remains mixed. High precious-metal prices, currency volatility and evolving trade arrangements may affect costs and affordability. Nevertheless, jewellery demand is expected to remain resilient because of its emotional, gifting and occasion-based relevance, with consumer spending increasingly favoring differentiated products, trusted brands and compelling customer experiences.

Global Gems and Jewellery Market

The global gems and jewellery industry remained resilient during FY 2025-26. supported by growing demand for self-expression, self-gifting and long-lasting purchases, alongside traditional bridal and gifting occasions. McKinsey expects jewellery to grow by more than 4% annually over the next three years, significantly outpacing apparel and other discretionary fashion categories.

The global fine jewellery market is estimated at approximately US$358 billion in 2026. as reported by Vyansa Intelligence.

The market continued to witness a divergence between value and volume. According to the World Gold Council, global gold-jewellery consumption declined by approximately 18% to 1,542.3 tonnes in 2025. primarily due to record gold prices. However, demand in value terms increased by approximately 18% to a record US$172 billion. This indicates that consumers are purchasing fewer products hut continuing to spend on distinctive, well-designed and meaningful jewellery.

Higher precious-metal prices are encouraging demand for lighter-weight products, innovative settings, mixed-metal designs and versatile collections such as stackable rings, charms and tennis jewellery. The market is also becoming increasingly polarised, with premium demand remaining resilient among affluent consumers, while the accessible segment is placing greater emphasis on value, quality and design differentiation.

The broader luxury market is gradually stabilizing. Bain estimates that personal luxury-goods spending stood at approximately €338 billion in 2025 and expects growth of 2%-4% in 2026. The Americans are expected to remain comparatively stronger, while European demand may continue to be affected by subdued economic conditions.

Digitalization continues to reshape jewellery retail, with consumers increasingly moving across social media, online search, brand websites, virtual consultations and physical stores during the purchase journey. As a result, jewellery brands are increasingly adopting Omni channel models that combine digital discovery and product customization with in-store consultation and service.

United States and Europe and middle cast

The United States continued to demonstrate resilience duiing 202-,. Tenoris reported that U.S. jewellery sales increased by approximately 5.6%, with finished-jewellery sales rising by 7.5% and average expenditure per item increasing by 14%. despite a 5.6% decline in units sold. The World Gold Council also estimated that U.S. spending on gold jewellery increased by approximately 28% to US$13 billion, reflecting continued demand for premium and higher-value products. Looking ahead, the U.S. jewellery market is projected to reach approximately US$81.3 billion in 2026. according to Grand View Research.

U.S. jewellery demand is also becoming more occasion-diverse, with self-purchase and personal milestones gaining importance alongside bridal demand. Younger consumers are increasingly seeking distinctive, branded and personalized jewellery, creating opportunities for direct -to-consumer and customized product offerings.

European jewellery demand remained comparatively subdued due to weak economic growth and cautious consumer sentiment. Although European gold-jewellery volumes declined for the third consecutive year in 2025, demand in value terms increased to a record of approximately USS7 billion. This reflects continued consumer preference for meaningful and differentiated jewellery despite lower purchase volumes.

Over the medium term, European demand is expected to favor branded jewellery, craftsmanship, transparent sourcing and personalized products. However, given the diversity of consumer preferences across European markets, expansion will require a selective approach to assortment, pricing, distribution and customer engagement.

The Middle East jewellery market remained structurally attractive, supported by culturally embedded bridal and gifting demand, high disposable incomes and the regions position as a global luxury and gold-trading hub. The GCC jewellery market was valued at approximately US$14.6 billion in 2025 and is projected to reach US$15.4 billion in 2026, with Saudi Arabia and the UAE serving as the principal growth markets. Although elevated gold prices have constrained purchase volumes, consumers continue to prioritize branded, bespoke and investment-oriented jewellery, creating opportunities for differentiated designs, personalized offerings and premium retail experiences.

Lab-Grown Diamonds:

Growing Adoption Amid Price Normalization

Lab-grown diamonds continued to gain consumer acceptance during FY 2023-26, particularly in the U.S. bridal market, supported by their affordability, larger attainable carat sizes and appeal among younger consumers. Euromonitor estimated global lab-grown diamond jewellery sales at nearly US$9 billion in 2024. although future growth may be moderated by intense competition, falling prices, regulatory developments and increasing scrutiny of sustainability claims.

Adoption remains strongest in U.S. engagement jewellery. The Knots 2026 Real Weddings Study reported that approximately 61% of couples married in 2023 selected a lab-grown diamond as the centre stone of their engagement ring. The average lab-grown diamond ring cost approximately US$4,300 and featured a 2.0-carat centre stone, compared with approximately US$7,000 and 1.6 carats for a natural-diamond ring.

Pricing pressure remains a key structural feature of the category. Tenoris reported that U.S. loose lab-grown diamond unit sales increased by approximately 14% in 2025, while revenue declined by around 1% and average prices fell by approximately 13%. These trends are shifting value creation away from loose stones towards design, branding, craftsmanship, customization and customer experience.

The Company believes that the strongest opportunities will arise for asset-light, downstream businesses focused on differentiated branded jewellery rather than upstream manufacturing. In Europe, adoption remains less mature and fragmented, hut growth opportunities are expected in bridal, accessible luxury, fashion-led fine jewellery and personalized products. Natural and lab-grown diamonds are expected to coexist with distinct propositions: natural diamonds retaining relevance in rarity-led and high-value purchases, while lab-grown diamonds gain share in value-oriented, larger-carat and customized jewellery.

Rise of Direct-to-Consumer and Omni-channel Jewellery Brands

The direct-to-consumer jewellery model continued to expand during FY 2025-26, while evolving from pure online retail towards an integrated Omni-channel format. Consumers increasingly discover and compare products through social media, online search and digital tools, while continuing to value physical consultation, product inspection and after-sales service. The Knots 2026 Heal Weddings Study indicated that approximately 64% of surveyed U.S. engagement-ring purchases were completed in-store, highlighting the continued importance of physical retail alongside digital discovery.

Renaissance Globals revenue from its own U.S. brands increased by approximately 44%. The Companys portfolio includes Jean Dousset, WithClarity, Jewel iIi. Everyday Elegance, among others. Following the launch of Jean Doussets New York flagship store, the Company has announced plans to open five additional stores in key U.S. metropolitan markets, combining bespoke consultations with curated ready-to-purchase collections.

Personalized and Customized Jewellery: From Product Feature to Core Consumer Proposition

Personalization and customization continued to

Digitally native brands are therefore establishing boutiques and consultation-led showrooms, while traditional jewellers are strengthening their e-commerce, virtual consultation and customer-relationship capabilities. Artificial intelligence is also becoming increasingly relevant to luxury-product discovery. Bains April 2026 survey found that 54% of U.S. luxury buyers and 27% of French luxury buyers used AI during their most recent luxury purchase, including many customers who ultimately completed their purchase in-store.

The D2C model enables brands to build direct customer relationships, obtain first-party data, respond faster to product preferences and offer personalized services. I lowever. sustainable growth requires continued investment in customer acquisition, digital content, technology, fulfilment and after-sales support.

gain importance during FY 2025-26 as consumers increasingly sought jewellery reflecting their identity, relationships and personal milestones. Customization now extends hevond engraving and birthstones to include choices of stone shape, carat, metal, setting and design, as well as fully bespoke creations.

The trend is particularly strong in engagement jewellery. The Knots 2026 Real Weddings Study reported that nearly 90% of surveyed consumers either made custom modifications to their engagement ring or designed the ring fully to their specifications. Stone shape was ranked as the most important feature, followed by design style, setting and choice of metal.

Personalization is also gaining relevance beyond bridal jewellery. Jewellery is increasingly being used

to celebrate birthdays, anniversaries, professional achievements and other individual milestones. De Beers U.S. consumer research found that younger consumers acquire diamonds for a wider range of occasions. place greater emphasis on self-expression and seek distinct products that feci personal to them.

For jewellery businesses, customization creates an opportunity to move away from direct price comparison and to build a deeper emotional relationship with the customer. It may support higher conversion, average order value and customer loyalty while strengthening brand differentiation. At the same time, customization introduces operational complexity through a larger number of product combinations, longer order cycles, specialist customer-sendee requirements and the need for accurate production and quality-control systems.

Technology is making customization more scalable. Online ring builders, three-dimensional product visualization, computer-aided design, virtual appointments and digitally integrated manufacturing allow brands to offer a wide range of configurations without maintaining finished inventory for every possible combination.

A hybrid "custom-lite" model is expected to become increasingly important. Under this approach, consumers select from proven design platforms and personalize defined elements, enabling brands to offer individuality while maintaining manufacturing efficiency, predictable delivery timelines and quality control. Fully bespoke services can then be reserved for higher-value customers seeking a unique design and a more intensive consultation experience.

Outlook and Strategic Relevance to Renaissance Global

The near-term outlook for the global gems and jewellery industry remains measured, with economic uncertainty, high precious-metal prices, currency volatility and cautious discretionary spending likely to affect volumes. The United States is expected to offer relatively stronger opportunities, while European demand may remain subdued.

The medium-to-long-term outlook remains constructive, supported by jewellerys enduring relevance across bridal, gifting, celebrations, self-expression and long-term ownership. Growth is expected to be driven by branded products, lab-grown diamonds, digital distribution and increasing demand for personalization.

Renaissance Global is well positioned to participate in these trends through its integrated design, manufacturing, merchandising, licensing and digital-commerce capabilities. The Company will continue to strengthen its owned-brand and DiC businesses, expand its U.S. Omni channel presence and selectively develop opportunities in other global markets.

The Company will maintain a disciplined, downstream-focused approach to LGI) jewellery, emphasizing design, branding, customization and customer experience while limiting exposure to upstream price volatility. Continued investment in digital content. customer data. virtual consultation, configurable collections and efficient sourcing is expected to support growth and differentiation.

RENAISSANCE GLOBAL BUSINESS MODEL AND KEY STRENGTHS

Business Model

Renaissance Global Limited operates an integrated, design-led jewellery business model covering trend identification, product conceptualization, design, manufacturing, merchandising and global distribution. The Company serves both business-to-busi- ness and direct-to-consumer markets, combining long-standing relationships with international retailers and jewellery customers with a growing portfolio of owned and licensed brands. Its integrated capabilities enable faster product development. flexible sourcing, quality control and efficient execution across multiple markets and sales channels. file business model is progressively evolving from a predominantly manufacturing-led platform towards a brand-led. intellectual-property-driven and consumer-focused jewellery enterprise.

The Companys business is organized across three principal segments:

1. Customer Brands

2. Licensed Brands

3. Owned Brands

Customer Brands OEM and Private Label

The Customer Brands business provides end-to-end design, product-development and manufacturing services to international specialty jewellers, department stores, e-commerce businesses, designer labels and other jewellery retailers. Collections are developed in accordance with each customers brand identity, target consumer, price architecture and merchandising requirements, covering categories ranging from bridal and fine jewellery to accessible fashion and everyday-wear products.

RGLs integrated design and manufacturing capabilities enable it to manage complex programmes involving multiple designs, materials, price points and delivery schedules. Dedicated OEM and quick-ship facilities, global design capabilities and established quality-control processes support reliable execution and shorter product-development cycles. These capabilities position the Company to serve both large international retailers and the growing number of digitally native jewellery brands requiring flexible quantities, frequent product launches and responsive supply-chain support.

The Company has also developed specialized infrastructure for customized jewellery across its B2B and D2C operations. Its design, technology and

manufacturing systems enable individually

configured products—particularly engagement rings and bridal jewellery—to move efficiently from customer selection and computer-aided design to production, quality assurance and dispatch. This capability allows RGL to participate in the growing demand for personalized jewellery while helping its partners operate with lower finished-goods inventory.

The segment provides scale, manufacturing utilization and enduring institutional relationships, while also serving as a platform through which the Company can apply its product-development expertise to emerging jewellery categories and channels.

Licensed Brands

The Licensed Brands business combines RGLs design, manufacturing and merchandising capabilities with globally recognized intellectual property. The Company develops jewellery collections inspired by established entertainment and lifestyle franchises and distributes them through international retail partners and its own digital channels.

The Companys licensing relationships include franchises associated with Disney. Hallmark, and Star wars. These relationships allow RGL to create differentiated products that combine jewellery with storytelling, character affinity, fandom and nostalgia.

Ihe portfolio includes collections under franchises such as Enchanted Disney Fine Jewelry. Disney Jewels, Star Wars and Marvel. Product development extends across bridal, gifting and everyday fine-jewellery categories, enabling the Company to address multiple consumer demographics and purchase occasions. Enchanted Disney Fine Jewelry, for example, combines Disney-inspired storytelling with engagement rings, diamond jewellery and character-themed designs distributed through major retailers and online channels.

The licensed model provides access to established consumer communities and supports stronger product recognition and retail differentiation. By distributing collections through both B2B partners and D2C websites, RGL can combine the reach of wholesale distribution with the consumer engagement and data benefits of direct commerce.

The company seeks to manage this business through disciplined product selection, coordinated marketing and an omni channel distribution strategy."

Owned Brands

The Owned Brands business is central to RGLs strategic transition towards a higher-value, consumer-facing jewellery platform. Through its owned and strategically controlled brands, the Company participates directly in product positioning, pricing, digital marketing, customer acquisition, retail experience and after-sales engagement. The portfolio spans luxury and accessible bridal jewellery, lab-grown diamonds, customized fine jewellery, premium Indian jewellery and everyday fashion jewellery.

United States

The Companys principal U.S.-focused owned brands include With Clarity, Jean Dousset, Jewelili and Everyday Elegance.

With Clarity is a digitally native fine-jewellery brand focused on engagement rings, bespoke creations and milestone purchases. Its proposition combines customization, contemporary design and lab-grown diamonds, supported by transparent digital product information and personalized customer service. The platform allows customers to configure key product attributes, including diamond characteristics, setting and design elements, while RGLs integrated manufacturing and fulfilment capabilities support efficient execution of made-to-order jewellery, configure key product attributes, including diamond characteristics, setting and design elements, while RGLs integrated manufacturing and fulfilment capabilities support efficient execution of made-to-order jewellery.

Jean Dousset is positioned as a luxury lab-grown diamond jewellery brand specializing in bespoke engagement rings and fine jewellery. The brand was founded by Jean Dousset, the great-great-grandson of Louis Cartier, and adds a luxury, design-led proposition to the Companys consumer-brand portfolio. Jean Dousset operates through an Omni channel model combining digital engagement with high-touch physical boutiques and personalized consultations.

Jewelili and Everyday Elegance complement the bridal and fashion portfolio by offering accessible, design-led jewellery for gifting and everyday occasions. These brands are marketed through digital channels and major e-commerce platforms, broadening the Companys addressable consumer base and creating opportunities for repeat purchases and cross-category engagement.

India

In India, IRASVA is the Companys premium fine-jewellery retail brand. The brand combines Indian craftsmanship with contemporary design and targets the evolving preferences of the modern Indian consumer. It is distributed through physical store and supported by the Companys design, manufacturing and merchandising capabilities.

The Company also leverages the With Clarity proposition in India through a dedicated digital platform and shop-in-shop formats within IRASVA. This enables RGL to address growing interest in lab-grown diamonds, customized engagement rings and accessible bridal jewellery through a combination of digital configuration and assisted physical retail.

Integrated Value-Creation Model

The three segments are complementary. Customer Brands provide manufacturing scale, established global relationships and supply-chain utilization: Licensed Brands combine recognized intellectual property with RGLs design and distribution capabilities; and Owned Brands enable the Company to participate more directly in consumer relationships, brand equity and the retail value chain.

Common design, sourcing, manufacturing, technology and fulfilment infrastructure supports all three segments. Consumer insights from the I)2(: businesses can inform product development, while the scale and technical capabilities of the B2B platform support the efficient growth of owned and licensed collections. This integrated model allows RGL to address multiple price points, channels and geographies while progressively increasing the contribution from branded, customized and consumer-facing jewellery.

Sustainability

At Renaissance Global Limited, sustainability is integral to long-term value creation and responsible business conduct. The Company continues to strengthen ethical sourcing, environmental stewardship, employee well-being, governance and community engagement across its operations.

RGLs responsible-sourcing framework is supported by certification under the Responsible Jewellery Councils Code of Practices, valid from May 2025 to May 2028. covering specified manufacturing and trading operations. The certification also recognizes provenance claims relating to recycled gold and silver sourced from eligible certified suppliers.

Environmental initiatives are guided by ISO i4ooi:2oi3-certified management systems across the Companys Indian manufacturing facilities. Key focus areas include renewable-energy use, energy and water efficiency, effluent treatment, emissions control, waste management and increasing use of recycled precious metals.

The Company also promotes fair labour practices, workplace safety, diversity, human rights, anti-corruption and grievance redressal. while aligning its approach with the UN Global Compact, the Womens Empowerment Principles and relevant Sustainable Development Goals.

Through the Renaissance Foundation and partner organization. RGL supports initiatives in education, healthcare, disaster relief and animal welfare. Going forward, the Company intends to strengthen ESG measurement, expand renewable-energy and recycled-material use and deepen responsible-sourcing practices across its value chain.

Financial Overview

FY 2023-26 was marked by strong growth across the Companys continuing operations. Revenue excluding bullion sales and discontinued operations increased by 29.3% to {2.571.3 crore, compared with {1,988.2 crore in FY 2024-25. Customer Brands contributed 77% of core revenue, while Licensed Brands and Owned Brands accounted for 12% and 11%, respectively.

Consolidated EBITDA increased by 22% to {204.0 crore, with an EBITDA margin of 7.9% on revenue excluding bullion sales and discontinued operations. Segment margins stood at 11.6% for Owned Brands, 13.1% for Licensed Brands and 6.6% for Customer Brands, while the U.S. Owned Brands

business achieved a margin of 12.6%.

Profit before exceptional items rose by 45.0% to {123.5 crore, while adjusted PAT increased by 35.8% to {100.1 crore.

Ihe growing contribution from branded and direct-to-consumer businesses is expected to support further margin expansion. Over the medium term, the Company believes D2C margins could improve towards 17/0—18%, while Customer Brands margins may approach 9%, supported by scale, a more favorable business mix, cost efficiencies and disciplined working-capital management.

Phe balance sheet remained healthy, with shareholders equity increasing to {1.344 crore from {1.422 crore and book value per share rising to {144 from {133. Return on capital employed improved to 9.4% from 8.3%. Although net debt increased marginally to {267 crore, the net debt-to-equity ratio improved to 0.17 from 0.18. reflecting the continued strengthening of the Companys equity base. Looking ahead, the Company remains focused on disciplined deleveraging and aims to achieve a net debt-free position over the next three to four years.

Outlook

As Renaissance Global enters FY 2026-27, the business environment is expected to remain uncertain, with tariff policies, geopolitical developments, precious-metal prices, inflation, interest rates and foreign-exchange movements influencing demand and operating costs. The Company will continue to focus on agile sourcing, inventory discipline, cost control and prudent capital allocation.

Despite near-term challenges, the outlook remains constructive. Growing acceptance of lab-grown diamonds, rising demand for personalized jewellery, expansion of digital and Omni channel retail and preference for differentiated, design-led brands provide meaningful growth opportunities. RGLs integrated capabilities across design, manufacturing, customization, digital marketing and global distribution position it well to benefit from these trends.

The Companys key priorities for FY 2026-27 include scaling its owned D2C brands profitably, improving the performance of Licensed Brands and driving profitable growth and working-capital efficiency in Customer Brands. A major focus will be the expansion of Jean Dousset through five additional boutiques in key U.S. luxury markets, taking the

brands retail presence to seven locations, subject to disciplined site selection and capital deployment.

RGL will also evaluate selective acquisition opportunities in the branded and D2C jewellery space, with emphasis on strategic lit, scalable brand equity and potential synergies with the Companys manufacturing and distribution platform. Capital allocation will remain balanced between growth investments, liquidity preservation and leverage reduction.

The Companys long-term strategy is focused on expanding its global brand portfolio, enhancing earnings quality, optimizing working capital, improving capital efficiency and delivering sustainable shareholder value.

Risks, Threats and Concerns

Global Economic Conditions and Consumer Sentiment

Jewellery demand is influenced by economic growth, employment, inflation, interest rates and consumer confidence, particularly as a significant portion of the Companys products falls within discretionary spending. A slowdown in major markets, especially the United States, or prolonged geopolitical uncertainty could affect sales volumes, product mix and profitability. The Company seeks to mitigate this risk through geographic and channel diversification, a portfolio covering multiple price points and continued emphasis on branded, bridal and personalized jewellery.

Tariff, Trade and Geopolitical Risk

Changes in tariffs, customs regulations, sanctions and trade policies may increase landed costs, extend manufacturing and delivery timelines and affect demand from international customers. During FY 2023-26, the Company reported operating amid tariff-related and precious-metal-price headwinds, with tariff changes also affecting inventory timelines and margins. RGL continues to evaluate sourcing, pricing, production scheduling and supply-chain alternatives in consultation with customers to manage these risks.

Foreign-Exchange Risk

A significant proportion of the Companys revenue and raw-material purchases is denominated in foreign currencies, while a substantial part of its manufacturing and operating costs is incurred in Indian Rupees. Adverse movements in exchange rates may therefore affect revenue, input costs, receivables and profitability. The Company

manages this exposure through natural hedges, forward contracts and other treasury measures in accordance with its approved foreign-exchange risk-management policy.

Customer and Geographic Concentration

The United States remains RGLs principal market, and the Customer Brands business constituted approximately 77% of core revenue during FY 2023-26. Consequently, changes in U.S. consumer demand, retailer inventory strategies, trade policy or the performance of major customers could affect the Companys results. RGL seeks to reduce concentration over time by scaling Owned Brands, strengthening Licensed Brands and selectively expanding its presence across Europe and other markets.

Cybersecurity and Data-Privacy Risk

The expansion of e-commerce, digital marketing and Omni channel retail increases the Companys exposure to cyberattacks, system disruptions, payment fraud and unauthorized access to customer or business data. Any significant incident could interrupt operations, create financial or regulatory liabilities and affect stakeholder trust. The Company maintains technology, access-control, backup and monitoring measures and conducts employee training to improve awareness and strengthen cybersecurity practices.

Operational, Quality and Supply-Chain Risk

The Companys reputation depends on product quality, timely delivery, responsible sourcing and compliance with customer and regulatory standards. Manufacturing disruptions, supplier failure, product defects or non-compliance within the supply chain may lead to delays, recalls, financial loss or reputational damage. RGL mitigates these risks through supplier due diligence, diversified sourcing, quality-assurance systems, process controls, responsible-sourcing standards and regular operational reviews

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, strategies, projections, estimates, expectations or outlook may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Such statements are based on current assumptions and expectations and are subject to known and unknown risks and uncertainties.

Actual results may differ materially from those expressed or implied due to changes in economic and geopolitical conditions; consumer demand; tariffs and trade policies; government regulations and tax laws; precious-metal, diamond and gemstone prices; foreign-exchange and interest rates; financial-market conditions; competitive

intensity; technology and cybersecurity risks; availability of raw materials; supply-chain disruptions; performance of brands and retail stores; integration of acquisitions; and other factors beyond the Companys control. The Company does not undertake any obligation to publicly update or revise forward-looking statements, except as required under applicable law.

I

STRENGTH

• Integrated design to distribution capabilities.

• Diversified customer and distribution network.

• Strong portfolio of owned and licensed brands.

• Differentiated position in bespoke lab-grown jewellery.

• Comfortable capital structure and improving financial flexibility.

OPPORTUNITY

• Mainstream adoption of lab-grown engagement rings.

• Expansion of premium Omni channel D2C model.

• Improvement in revenue mix through owned brands.

• OEM sourcing opportunities.

• Geographic diversification outside the United States.