BlueStone Jewellery & Lifestyle Limited has reported a significant financial turnaround in its Q3 FY26 results, posting a standalone profit of ₹714.55 million compared to a loss of ₹268.75 million in the same quarter last year. The jewellery company's Board of Directors approved these unaudited financial results for the quarter ended December 31, 2025, during their meeting held on January 22, 2026.

Strong Revenue Growth Drives Quarterly Performance

The company demonstrated robust revenue growth with operations revenue reaching ₹7,479.00 million in Q3 FY26, representing a 27.44% increase from ₹5,870.92 million in Q3 FY25. Total income for the quarter stood at ₹7,586.40 million, up from ₹6,029.25 million in the corresponding period last year.

Nine-Month Performance Shows Improvement

For the nine months ended December 31, 2025, the company reported a loss of ₹104.42 million, a substantial improvement from the ₹1,705.67 million loss in the corresponding period of FY25. Revenue from operations for the nine-month period reached ₹17,535.70 million compared to ₹13,087.00 million in the previous year, marking a 34.00% growth.

Cost Management and Operational Efficiency

The company's total expenses for Q3 FY26 were ₹6,871.85 million, compared to ₹6,298.00 million in Q3 FY25. Key expense components included cost of raw materials consumed at ₹6,270.87 million and employee benefits expense of ₹724.59 million. The company benefited from a positive change in inventories of ₹2,173.41 million, indicating strong inventory management.

IPO Proceeds Utilization

The company continues to deploy its IPO proceeds effectively, having utilized ₹5,506.50 million out of the total ₹8,200.00 million raised. The utilization breakdown shows:

Corporate Structure and Operations

The consolidated results include the company's subsidiary Ethereal House Private Limited and its associate Redefine Fashion Private Limited. The company operates in a single segment focusing on the design, manufacture, and sale of jewellery, with all revenue derived from the domestic market. During the nine months ended December 31, 2025, the company granted 1,647,192 Employee Stock Options under its Employee Stock Option Plan 2014.

Regulatory Compliance and Future Outlook

The financial results have been prepared in accordance with Indian Accounting Standards and reviewed by the statutory auditors MSKA & Associates LLP, who issued an unmodified conclusion. The company's equity shares have been listed on BSE and NSE since August 19, 2025, with the paid-up equity share capital standing at ₹151.32 million as of December 31, 2025.

bluestone jewellery & lifestyle Limited's board of directors and audit committee have approved a substantial investment in its subsidiary Ethereal House Private Limited. The decision was made during board meetings held on January 22, 2026, marking a significant step in the company's expansion strategy.

Investment Structure and Details

The approved investment involves subscription to Series A2 compulsorily convertible preference shares (CCPS) of Ethereal House Private Limited. The investment parameters demonstrate a structured approach to subsidiary funding:

The investment is being executed pursuant to capital infusion provisions under the Shareholders' Agreement dated January 6, 2025, between BlueStone and Ethereal House.

About Ethereal House Private Limited

Ethereal House Private Limited was incorporated on August 21, 2024, making it a relatively new entity in the BlueStone group. The subsidiary operates in the jewellery and precious stones sector, with specific focus areas including:

• Purchase, sale, and manufacturing of precious and non-precious metals
• E-commerce operations for jewellery products
• Import and export of precious stones and metals
• Processing and designing of lab-grown diamonds, gold, silver, platinum
• Trading in diamonds, sapphires, emerald, rubies, and fashion items

The company's financial position as of March 31, 2025, shows a net worth of ₹16,13,36,076.00, while turnover remains nil given its recent incorporation.

Shareholding and Corporate Structure

BlueStone currently maintains a 74% shareholding in Ethereal House on a fully diluted basis. The proposed investment is structured as a related party transaction under SEBI listing regulations, conducted on an arm's length basis. The shareholding arrangement includes specific provisions:

Investment Rationale and Utilization

The investment aligns with BlueStone's strategic expansion in the jewellery sector, particularly in emerging segments like lab-grown diamonds. The funds will be utilized by Ethereal House for working capital requirements and business expansion activities. This investment represents BlueStone's commitment to strengthening its subsidiary operations and expanding market presence in the precious metals and stones segment.

The transaction requires no governmental or regulatory approvals, streamlining the execution process. BlueStone will execute definitive documents related to the proposed investment in due course, with the board meeting concluding the approval at 4:25 PM on January 22, 2026.