BlueStone Jewellery Reports Strong Revenue Growth Amid Widening Losses in Q2 FY26
BlueStone Jewellery & Lifestyle reported a 37.4% year-on-year increase in standalone revenue for Q2 FY26, reaching INR 5,131.00 million. The company expanded its retail presence to 311 stores across 127 cities and grew its customer base by 31%. However, BlueStone faced profitability challenges, reporting a consolidated net loss of INR 521.02 million. Operational metrics improved, with same-store sales growth at 11.1% and an increased Average Order Value of INR 59,907. The company's Adjusted EBITDA significantly improved to INR 714.00 million with a 13.9% margin. Despite positive trends in revenue and operational metrics, rising inventory levels and ongoing losses present challenges for long-term profitability.
*this image is generated using AI for illustrative purposes only.
BlueStone Jewellery & Lifestyle , a leading digital-first omni-channel jewellery brand, has reported a robust 37.4% year-on-year growth in standalone revenue for Q2 FY26, despite widening losses. The company's financial results for the quarter ended September 30, 2025, reveal a complex picture of expansion and financial challenges.
Revenue Growth and Market Expansion
BlueStone's standalone revenue reached INR 5,131.00 million in Q2 FY26, up from INR 3,734.00 million in the same quarter last year. This significant growth was driven by the company's expanding retail footprint and increased customer base. The number of stores grew to 311 across 127 cities, adding 19 new outlets during the quarter. The company's customer base expanded by 31% year-on-year to over 858,000.
Profitability Challenges
Despite the strong top-line growth, BlueStone reported a consolidated net loss of INR 521.02 million for Q2 FY26, compared to a loss of INR 844.71 million in Q2 FY25. While the loss has narrowed year-on-year, it represents a significant portion of the company's revenue.
Operational Metrics
The company saw improvements in several key operational metrics:
- Same-store sales growth (SSSG) stood at 11.1% year-on-year
- Average Order Value (AOV) increased to INR 59,907, up from INR 44,944 in Q2 FY25
- Repeat Revenue Ratio improved to 51.4%, indicating strong customer loyalty
Financial Highlights
| Metric (INR million) | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue | 5,131.00 | 3,734.00 | +37.4% |
| Adjusted EBITDA | 714.00 | 51.00 | +1,300% |
| Net Loss | 521.02 | 844.71 | -38.3% |
The company's Adjusted EBITDA saw a significant improvement, reaching INR 714.00 million with a margin of 13.9%, up from INR 51.00 million and a 1.4% margin in Q2 FY25.
Balance Sheet and Cash Flow
BlueStone's balance sheet showed signs of strain with inventory levels rising to INR 19,621.00 million, up 13% quarter-on-quarter. However, the company reported a positive cash PAT (Profit After Tax) of INR 61.00 million for the quarter, compared to a cash loss of INR 536.00 million in the same period last year.
Management Commentary
Gaurav Singh Kushwaha, CEO of BlueStone, commented on the results: "We are pleased to report another quarter of record revenues on the back of continued focus on execution. Our digital-first approach continues to direct demand to our stores, while our expanding retail footprint is deepening customer access."
Future Outlook
While BlueStone continues to focus on growth and market expansion, the widening losses pose challenges for long-term profitability. The company's ability to leverage its growing customer base and retail presence to drive profitability will be crucial in the coming quarters.
Investors may want to closely monitor BlueStone's progress in balancing growth investments with profitability improvements, as well as its utilization of the recent IPO proceeds for working capital and expansion plans.
As BlueStone navigates the competitive jewellery market, its digital-first strategy and omni-channel presence could provide advantages, but the path to consistent profitability remains a key concern for stakeholders.
