BlueStone Q2: Loss Narows 38% To INR 52 Cr

Omnichannel jewellery brand BlueStone’s consolidated net loss declined 38% to INR 52.1 Cr in the second quarter of the ongoing fiscal year (Q2 FY26) from INR 84.5 Cr in the same quarter last year on the back of strong revenue growth and improvement in margins. Sequentially, net loss surged over 50% from INR 34.7 Cr. 

The company’s operating revenue zoomed 38% to INR 513.6 Cr during the quarter under review from INR 373.4 Cr in the second quarter of FY25. 

However, it is pertinent to note that the numbers are not exactly comparable. Bluestone made an investment in its subsidiary Ethereal House on January 6, 2025 and in associate Redefine Fashion on November 11, 2024. Hence, its consolidated financial statements became applicable from the quarter ended December 31, 2024.

On a sequential basis, the company’s operating revenue rose 4% from INR 492.6 Cr. Including other income of INR 11.7 Cr, total income for the quarter grew 37% YoY to INR 525.3 Cr.

Meanwhile, expenses rose 23% YoY to INR 575.8 Cr during the quarter under review. While employee expenses surged the highest at 60% YoY to INR 72.1 Cr, BlueStone’s other expenses declined 9% YoY to INR 89.5 Cr.

On the operational front, BlueStone’s adjusted standalone EBITDA surged a whopping 14X YoY to INR 71.4 Cr. The company said that non-cash ESOP expense of INR 27.7 Cr and an impact of INR 10.6 Cr due to shift to IndAS accounting standards hit its bottom line during the quarter.

“The main factors are ESOP charges and the way lease costs are accounted for under IndAS 116, which tends to show higher expenses in the early years of a store lease,” the company said.

BlueStone said its pre-IndAS loss for the quarter stood at INR 10.8 Cr, down 83% from INR 63.6 Cr in the year-ago period. 

High Gold Prices Impact BlueStone In Q2

The new-age jewellery brand said that it maintained a steady business performance during the quarter despite operating in a dynamic business environment due to heavy movement in gold prices in India. 

Gold reached an all-time high of INR 1.1 Lakh for 10 gm towards the end of the quarter. Despite the uptick in prices, BlueStone said that a pickup in festive demand in the latter half of September supported its overall quarterly growth. 

“In the current high gold price environment, we have observed some tactical shifts in consumer behaviour, with customers gravitating towards plain gold and seeking designs aligned with their preferred ticket sizes. However, consumers continue to look for differentiated designs across both sets and that along with omnichannel customer experience remains the key driver for adoption and price premium that customers are willing to pay,” the company noted.

The company, which went public earlier this year, said that its digital-first approach continued to direct demand to its offline centres. BlueStone showcases over 7,400 unique designs via its digital media presence and claims to see over 50% repeat revenue driven purely by its designs. 

It added that the expansion of its retail footprint allowed it to grow its customer base by 31% YoY to 8.6 Lakh. BlueStone added 19 stores in the quarter, taking its store count to 311 across 26 states and union territories in the country. 

Shares of BlueStone ended today’s trading session almost flat at INR 711.25 apiece on the BSE.