BlueStone, the omnichannel jewellery retailer, reported a net loss of ₹4.4 crore in Q2 FY27, reversing from a net profit in the previous quarter but showing significant recovery from a steep loss a year earlier. The company’s revenue rose 45% year-on-year, driven by store expansion and a growing customer base.
- Q2 net loss narrows 92% year-on-year to ₹4.4 Cr
- Revenue up 45% YoY to ₹745 Cr, driven by store and customer growth
- Board approves up to ₹300 Cr raise via non-convertible debentures
What happened
BlueStone reported a consolidated net loss of ₹4.4 crore for Q2 FY27, reversing from a net profit of ₹6 crore in the prior quarter. However, this is a sharp improvement compared to a ₹52.1 crore loss from the same quarter last year. Revenue surged 45% year-on-year to ₹745 crore, slightly higher sequentially by 1.1%. The company also recorded other income of ₹24.4 crore, pushing total income to ₹769.4 crore for the quarter. Total expenses rose 34% year-on-year and 3.7% quarter-on-quarter to ₹772.4 crore.
Adjusted profit after tax stood at ₹19.6 crore, improving from an adjusted net loss of ₹26.8 crore a year ago, marking the fourth consecutive profitable quarter on an adjusted basis. Pre-IndAS EBITDA soared 234% year-on-year to ₹53.5 crore, though edged down 2.3% sequentially. Store network expanded by 27 outlets during the quarter, reaching 379 stores in 146 cities, predominantly targeting Tier II and III markets.
Why it matters
BlueStone’s continued revenue growth and narrowing losses indicate improving operational strength despite challenging market conditions, including gold price inflation which affected entry-level offerings. The company’s strategy of redesigning its product range has started generating returns, attracting more new customers and stabilizing average order values.
The retailer’s expanding presence in smaller cities shows a focused approach to tapping India’s vast regional markets. Increasing repeat customer contributions and same-store sales growth of 28% year-on-year underscore customer loyalty and effective market penetration. The adjustment to profitability metrics reflects BlueStone’s progress in translating scale into bottom-line gains.
What to watch next
BlueStone plans to raise up to ₹300 crore through private placement of non-convertible debentures, which will be used to refinance debt, fund capital expenditures, and support working capital needs. The success of this fundraise and prudent capital deployment will be critical for sustaining growth while managing financial health.
The company’s continued expansion into Tier II and III cities, along with flagship store investments, will be key growth drivers to monitor. Additionally, how BlueStone maintains momentum in customer acquisition and retention—especially via affordable, redesigned offerings—will influence future profitability and market positioning.