BlueStone Jewellery & Lifestyle , a leading omnichannel jewellery retailer, has reported robust financial results for the first quarter, demonstrating strong growth and improved profitability.

Financial Highlights

• Standalone revenue surged 41% year-on-year to Rs. 4,926.00 million
• Standalone adjusted EBITDA skyrocketed 630% to Rs. 830.00 million
• EBITDA margins expanded by 1,358 basis points to 16.8%
• Turned cash PAT positive at Rs. 175.00 million, compared to a cash loss of Rs. 360.00 million in the same quarter of the previous year
• Same-store sales growth of 18.4% year-on-year
• Repeat revenue ratio at 50.7%

Operational Performance

BlueStone continued its expansion strategy, growing its store count to 292 by the end of the quarter, up from 275 stores at the close of the previous fiscal year. The company's customer base expanded to over 816,000, reflecting the growing appeal of its omnichannel model.

Financial Analysis

The company's standalone adjusted EBITDA margins showed significant improvement, rising to 16.8% from 3.3% in the same quarter last year. Even excluding inventory gains of Rs. 228.00 million, the adjusted EBITDA stood strong at Rs. 602.00 million with margins of 12.2%, marking a substantial 895 basis point improvement year-on-year.

Contribution margins, a key metric for the company, improved to 31.8% (excluding inventory gains), up 130 basis points year-on-year. This expansion was primarily driven by improved capacity utilization and efficiencies in the company's new manufacturing facilities that opened in the previous fiscal year.

Cost Management

BlueStone demonstrated effective cost management during the quarter:

• Marketing costs decreased from 12.2% of revenue in the same quarter of the previous year to 6.9% in the current quarter
• Rent expenses were Rs. 368.00 million for the quarter
• The company optimized its production facilities for efficiency rather than inventory buildup

Omnichannel Strategy

Gaurav Singh Kushwaha, Founder, Managing Director, and CEO, emphasized the company's omnichannel approach: "70% to 90% of people who end up buying had browsed the website prior to buying from the store." This highlights the synergy between BlueStone's online presence and physical stores.

Store Performance

The company's older store cohorts (FY19-FY20) achieved an average revenue of about Rs. 120.00 million per annum in the previous fiscal year, with rental costs around Rs. 4.00-4.50 million per annum. These mature stores are delivering a 22% post-rental store level EBITDA, showcasing the potential for newer stores as they mature.

Future Outlook

BlueStone remains confident in its business model, citing the profitable scalability demonstrated by these results. The company continues to focus on balancing growth with improving profitability, aiming to deliver sustainable long-term outcomes for stakeholders.

As the jewellery market evolves with increasing digital influence, BlueStone's digital-first approach and expanding retail footprint position it well to capitalize on changing consumer behaviors and drive future growth.

Conclusion

BlueStone Jewellery & Lifestyle Limited's quarterly results reflect strong execution of its omnichannel strategy, effective cost management, and improving store economics. As the company continues to expand its store network and leverage its digital capabilities, it appears well-positioned for continued growth in the Indian jewellery market.

BlueStone Jewellery & Lifestyle , a leading digital-first, omni-channel jewellery brand, has announced robust financial results for the first quarter, demonstrating significant growth and improved profitability.

Key Financial Highlights

• Standalone revenue reached INR 4,926.00 million, up 41% year-on-year
• Adjusted EBITDA surged by 630% to INR 830.00 million
• Adjusted EBITDA margin expanded to 16.8%, a substantial increase of 1,358 basis points
• The company turned cash PAT positive, reporting INR 174.00 million compared to a cash loss of INR 360.00 million in the same quarter last year
• Same Store Sales Growth (SSSG) remained strong at 18.4% year-on-year

Expansion and Operational Performance

BlueStone continued its aggressive expansion strategy, adding 17 new stores during the quarter. As of June 30, the company's retail footprint expanded to 292 stores across 122 cities, representing an addition of 89 stores year-on-year.

The company's customer base grew by 34.4% year-on-year to 816,000, reflecting strong demand and effective customer acquisition strategies. The Average Order Value (AOV) increased to INR 55,499.00, up from INR 45,084.00 in the same quarter last year.

Profitability Improvements

BlueStone's focus on operational efficiency and scale benefits yielded significant profitability improvements. The company's Pre-IndAS EBITDA (excluding inventory gains) stood at INR 233.00 million, with margins improving to 4.7% from -3.5% in the same quarter of the previous year.

Gaurav Singh Kushwaha, CEO of BlueStone, commented on the results: "We are pleased to report our first quarter as a listed company with a strong performance — revenues grew 41% year-on-year, driven by healthy same-store sales growth and the continued expansion of our omni-channel footprint. Alongside this growth, we delivered meaningful profitability improvements, with standalone adjusted EBITDA up 630% and margins expanding by 1,358 bps, reflecting operating leverage across marketing, corporate costs, and manufacturing efficiencies."

Strategic Focus and Outlook

The company attributes its success to its omni-channel strategy, which integrates online and offline channels to provide a seamless customer experience. BlueStone's digital-first approach continues to serve as a strong demand funnel for its stores, while the expanding retail footprint is deepening customer access.

Looking ahead, BlueStone remains focused on balancing growth investments with profitability. The company's management expressed confidence in delivering sustainable long-term outcomes for stakeholders, based on the profitable scalability of their business model.

As BlueStone continues to expand its presence in the Indian jewellery market, investors and industry observers will be watching closely to see if the company can maintain its growth trajectory while further improving its profitability metrics in the coming quarters.