BlueStone Rallies 20% After Reporting Third Consecutive Profitable Quarter

Shares of omnichannel jewellery major BlueStone rallied as much as 20% to touch an intraday high of ₹730.10 on the BSE today after the company reported a profitable Q1 FY27 yesterday.

After touching the upper circuit, the stock closed the session 19.52% higher at ₹727.20 on the BSE. The company’s market capitalisation stood at ₹11,082 Cr (about $1.15 Bn).

The Accel-backed D2C company reported a net profit of ₹6 Cr in the first quarter of FY27, as against a net loss of ₹34.7 Cr in the year-ago period. However, its PAT declined 80% on a sequential basis from ₹31.2 Cr in Q4 FY26.

Meanwhile, operating revenue grew 50% YoY and 8% QoQ to ₹736.8 Cr.

BlueStone said that its standalone adjusted PAT for the quarter stood at ₹14 Cr compared to a loss of ₹21 Cr in the year-ago period. Moreover, it saw a 39% YoY same store sales growth (SSSG), noting that consumer demand remained resilient despite gold price volatility.

“Customers are price-point driven, not investment-driven; stable gold prices are the most conducive environment for us to achieve our growth targets,” the company’s management said in a post-earnings call today.

Moving forward, it expects EBITDA margins to expand from 7.5% currently to about 15% over the next four years as revenue scales. The company also said that since nearly all products are manufactured internally, it has an estimated 300-400 basis point advantage over peers that outsource manufacturing while also protecting design IP.

It added 12 new stores and entered five new Tier II and III cities during the quarter, increasing the total store count to 352 across 139 cities. It reiterated the guidance of about 20% annual distribution growth despite the slowdown in store additions this quarter.

Moving forth, the company sees considerable headroom for growth in the non-metro markets and plans to further double down on existing markets. Bluestone noted that it is able to operate larger stores in non-metro cities because rents are cheaper, allowing for better frontage without materially changing per-store economics.

The company plans to grow its store count to 706 by FY30 and sees its D2C website as a discovery channel in the long run. The management expects same-store sales growth to become an increasingly important driver, even as new store additions continue.

It said that repeat customers accounted for nearly 60% of its revenue, supporting its operating leverage by enabling growth at a lower customer acquisition cost. Moreover, their average order value is typically 20-30% higher than new customers, and repurchase frequency is rising as customer cohorts mature.

New customer acquisition, however, has slowed to 40,000 from 50,000 on a QoQ basis, which was attributed to merchandising disruptions caused by gold price volatility.

In its investor day presentation presented in June, the company projected an annual revenue of ₹12,000 Cr in FY30, almost 5X of its FY26 total revenue of ₹2,486 Cr.

Back then, JM Financial maintained a ‘Buy’ rating on the stock, citing a shift in consumer demand from wedding jewellery to lifestyle jewellery as a key growth driver, a trend it said is benefiting organised players like BlueStone.

The post BlueStone Rallies 20% After Reporting Third Consecutive Profitable Quarter appeared first on Inc42 Media.