ET Intelligence Group: Shares of BlueStone Jewellery and Lifestyle have gained 15% over the past month, defying the weakness in the broader market that has dragged down the benchmark indices by nearly 9%. Analysts expect operating leverage and annual additions of 65-70 stores could drive margin growth through FY27-28.
The company’s pan-India store count increased to 323 as of December 2025 from 275 at the end of March 2025; over half of these stores now generate ₹10-14 crore in annual revenue each, reflecting improving store maturity. This is crucial as it improves operating leverage since the store-level costs stay largely fixed even as revenue scales.
This was visible in the operating margin before depreciation and amortisation (Ebitda margin), which rose sharply to 22% in the December 2025 quarter from 8.5% in the year-ago quarter. The company’s revenue increased by 34% year-on-year to ₹1,754 crore in nine months to December 2025 while net loss contracted to ₹18 crore from ₹170.6 crore. Ebitda margin expanded to 15.2% from 3.6% during the period.
Agencies
Scale & Loyalty Stock gains 15% in a month as investors bet on scale-driven model amid improving store maturity
Around 58% of the jeweller’s revenue comes from repeat customers, reflecting customer loyalty. BlueStone has also entered the lab-grown diamonds (LGDs) segment through its 74% subsidiary Ethereal. It believes the segment is still in the discovery stage but showing initial traction as customer tastes and product positioning evolve. According to brokers Emkay Global Financial Services, the impact of LGDs will be largely confined to the solitaire segment, which is 2-3% of the market where price gaps with natural diamonds are meaningful. In smaller-carat stones, the gap is narrow, and Indian consumers typically favour gold jewellery with small diamonds where overall diamond content is low, making the cost difference between natural and lab-grown stones minimal.
Emkay mentioned in a report that Bluestone delivered revenue growth of about 40% annually between FY23 and nine months to December 2025. The growth moderated to 27% year-on-year in the December 2025 quarter amid high gold prices that pushed demand toward coins and chains-categories where the company has lesser exposure. The company expects its 30-35% revenue growth to sustain, driven by continued network expansion and strong double-digit same-store sales as its young store base matures.
Agencies