BlueStone Jewellery shares climbed 20% on Tuesday following a strong June-quarter performance. The retailer turned profitable with a net profit of ₹7 crore, driven by a 49.6% revenue jump and 39% growth in same-store sales. Investors are focused on the company’s ability to maintain these margins while expanding its retail network.
Detailed Coverage
BlueStone Jewellery and Lifestyle Ltd. saw its share price hit the 20% upper circuit on Tuesday, reflecting positive market sentiment following its financial results for the quarter ended June 30, 2026. The company moved from a net loss of ₹35 crore in the same period last year to a net profit of ₹7 crore, marking a significant step toward consistent profitability after its first full year of reported profits in FY26.
Operational Growth and Store Expansion
The rally was largely driven by strong operational metrics. Revenue from operations grew by 49.6% year-on-year to reach ₹737 crore. A standout figure for investors was the 39% same-store sales growth, which measures the sales performance of existing retail outlets. This indicates that current stores are attracting more customers or generating higher sales per visit, even as the company aggressively expands its physical footprint. During the quarter, BlueStone added 12 new stores, bringing its total network to 352 outlets across 139 cities, with a specific focus on Tier-II and Tier-III markets.
Margin Improvement and Product Mix
Profitability at the operating level improved significantly as the company benefited from operating leverage, where sales grew faster than operating costs. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 93.7% to ₹107.7 crore. As a result, the EBITDA margin expanded to 14.62%, compared to 11.29% in the same quarter last year. The company’s focus on higher-value products also supported this trend, with the share of studded jewellery in the total revenue mix rising to 57% from 55% in the previous quarter.
Management View and Sector Context
Management noted that the growth was achieved despite volatility in gold prices and a notable increase in the customs duty on gold from 6% to 15%. According to Managing Director and CEO Gaurav Singh Kushwaha, the company’s portfolio continues to find relevance across various price points through design innovation. The company reported a standalone cash profit of ₹57 crore for the quarter, highlighting its focus on generating cash as it scales.
Investors should monitor how the company balances its aggressive store expansion plans with the need to maintain these improved profit margins. As BlueStone operates in a highly competitive jewellery sector, the sustainability of its same-store sales growth and its ability to navigate fluctuations in gold import duties will be key factors for its future financial performance. The next important step will be to track whether the company can maintain its current margin levels as it enters more Tier-II and Tier-III cities, which may have different cost structures compared to its established metro markets.