BlueStone Jewellery: A Sparkling Q2 FY26 Performance

BlueStone Jewellery and Lifestyle Limited, a prominent 'digital-first' omni-channel player in India's vibrant jewellery market, has unveiled a robust performance for the second quarter of Fiscal Year 2026. The company reported a standalone revenue of ₹513.09 crore, marking a significant 37.4% year-on-year growth. This impressive top-line expansion was complemented by a remarkable improvement in profitability, with adjusted EBITDA soaring to ₹71.36 crore, translating into a substantial margin of 13.9%. This represents a phenomenal 1255 basis points increase compared to the 1.4% recorded in Q2 FY25. The company's net profit after tax (Cash PAT) stood at ₹6.15 crore, a strong turnaround from a loss of ₹53.58 crore in the previous year's corresponding quarter.

The company's performance underscores the resilience of its business model and the effectiveness of its deep execution focus. BlueStone continues to benefit from its omni-channel strategy, seamlessly integrating its online presence with an expanding physical retail footprint. As of September end, the company operated 311 stores across 127 cities, adding 19 new stores during the quarter. This strategic expansion has been a key driver, alongside a continued focus on design innovation and superior customer experience. The customer base grew by 31% year-on-year, reaching 858,000 customers, and same-store sales growth (SSSG) stood at 11.1% year-on-year, despite a high base effect from Q2 FY25, which had benefited from a custom duty cut.

Strategic Pillars Driving Growth

BlueStone's success is rooted in several strategic pillars. The company's omnichannel strategy provides a seamless customer experience, driving better conversion, increased sales, and higher repeat purchases. This includes online product discovery, a wide network of physical stores across India, personalized video calling, and a vast catalogue of over 7,400 designs. The company leverages 3D rendering and 360-degree visualizations to enhance the online shopping experience, making it as engaging as an in-store visit.

Product and design are at the core of BlueStone's offerings, setting it apart from traditional jewellers. The company focuses on youth-focused, modern designs aligned with fashion trends, offering affordable pieces starting at ₹5,000. This approach caters to the modern consumer's preference for daily-wear and non-wedding occasion-wear jewellery, prioritizing design over metal value. This strategy has resulted in higher gross margins and strong customer repeat rates.

BlueStone's in-house technology and vertically integrated manufacturing capabilities are crucial for its agile design-to-store model. This allows for quick turnaround of new designs, efficient scale-up of production, and cost-effective capture of new trends. The company's integrated tech stack manages production, orders, and customer relationships, boosting accuracy, increasing order value, enhancing retention, and accelerating innovation. Manufacturing facilities in Mumbai, Jaipur, and Surat ensure quality control and efficient supply chain management.

Financial Highlights

The financial performance for Q2 FY26 demonstrates significant operational improvements. The gross profit increased by 46.4% year-on-year to ₹202.88 crore, with gross margin expanding by 242 basis points to 39.5%. Contribution profit grew by 68.2% to ₹179.02 crore, and contribution margin improved by 639 basis points to 34.9%. This indicates strong underlying business health and efficient cost management.

Outlook and Management Commentary

Management acknowledged the volatile gold price environment as a challenge, noting its impact on customer purchasing behaviour. However, they expressed confidence in their operating leverage model, expecting better EBITDA margins in the second half of FY26 due to seasonality. The company plans to open 70-80 new stores in FY26, continuing its strategic expansion. They also highlighted the success of initiatives like the 'Big Gold Upgrade' program, which has seen strong adoption.

BlueStone's focus on a digital-first, design-led, and customer-centric approach positions it uniquely in the Indian jewellery market. The company's ability to maintain strong growth and expand margins, even amidst market volatility, demonstrates its robust business model and effective execution. With a clear strategy for expansion, technological integration, and customer engagement, BlueStone is well-poised for sustained growth in the evolving retail landscape.

Segment Comparison (Q2 FY26 Revenue Split)

BlueStone's Q2 FY26 performance reflects a company that is not just growing, but growing smartly. Its strategic investments in technology, design, and omnichannel presence are yielding significant returns, solidifying its position as a leader in India's modern jewellery retail sector. The company's disciplined execution and customer-centric approach are key to its continued success.