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BlueStone Jewellery & Lifestyle (BlueStone) reported another strong quarter

ICICIdirect Research 21 Jul 2026 DISCLAIMER

News: BlueStone Jewellery & Lifestyle (BlueStone) reported another strong quarter with consolidated revenue growing 49.6% YoY to Rs.736.8cr in Q1FY27 (vs our estimate of Rs.718cr) (+8.1% QoQ), driven by robust SSSG of 39% led by strong performance from older store cohorts and steady pace of store additions. The company added 12 stores during the quarter, taking the total store count to 352. Inventory gain stood at Rs.24.8cr and has been adjusted in the results. Despite higher gold prices and the increase in gold customs duty, gross margin improved 98bps YoY to 37.4% (+132bps QoQ) (better than our estimates of ~34%). Flow through of higher gross margins coupled with improved operating leverage (revenues growing faster than cost base) supported EBITDA margin expansion of 458bps YoY to 11.3% (better than our estimate of 10.5%) (+51bps QoQ). EBITDA stood at Rs.83cr vs Rs.33cr in Q1FY26 (vs Rs.73.3cr in Q4FY26). Higher depreciation (+24% YoY, +8.4% QoQ) due to store additions and a 5.2% YoY rise in interest cost resulted in an adjusted loss of Rs.12.9cr, vs loss of Rs.51.1cr in Q1FY26. Reported PAT stood at Rs.6cr versus a loss of Rs.34.7cr in Q1FY26. Management highlighted that demand trends remain intact, with a slight slowdown in May followed by improvement in June. On Operating metrics, repeat revenue ratio stood at 60% in Q1FY27, Customer base stood at 9,84,766 growing by 20.7% YoY and average order value grew by 41% YoY to Rs.78,081.

View: BlueStone reported strong set of results and were all round beat to our estimates. The company has reported 2nd consecutive quarter of close to 50% revenue growth. The company had given guidance of 50% CAGR growth in revenues between FY26-FY30. This is the 2nd consecutive quarter wherein BlueStone has reported close to 50% growth in revenues. This is good start to FY27, and the growth trajectory is in-line with the guidance set by the company during its recent analyst meet. Older cohorts continue to report stronger growth while newer stores continue to scale towards higher revenue cohorts. This coupled with higher repeat rates (~60% in Q1FY27 vs ~51% in Q1FY26) and steady trend of new customer base addition (+20.7%) continue to aid AOV expansion (+40.7% YoY) thereby leading to consistent and sustained revenue growth. Further, presence across various price points helps the company acquire more customers and improve AOV and higher studded share will help mitigate volatility of gold prices improving gross margins ahead. We believe accelerated revenue growth coupled with higher studded share and significant scale led efficiencies and flow through of lower ESOP cost provides headroom for EBITDA margin expansion over the long term. The stock is up ~18% over the last 1 month.

Impact: Positive

View our research recommendation on Bluestone Jewellery & Lifestyle Ltd Also explore more on Research page

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