Bluestone Jewellery shares have surged 36% in just three trading sessions, rallying another 7% to ₹832 on Thursday, extending their winning streak to a third straight session, as reported by The Economic Times. The buying momentum follows a strong Q1 performance, with the company reporting a net profit of ₹14 crore compared with a net loss of ₹21 crore in the corresponding quarter last year. Since making its stock market debut in August 2025, the shares have more than doubled from their 52-week low of ₹400, with the stock rallying 67% in the past month alone, significantly outperforming the BSE Sensex's 0.35% decline. The stock has staged a remarkable comeback, surging 118% from its all-time low of ₹400.80 after remaining under pressure for a prolonged period.
Bluestone Jewellery delivered exceptional Q1FY27 results with 48.8% revenue growth to ₹733 crore, marking a return to profitability with net profit of ₹14 crore versus a net loss of ₹21 crore in Q1FY26, as reported by The Economic Times. Same-store sales growth improved to 39% year-on-year, while standalone EBITDA increased 134.6% YoY to ₹55 crore. The operating leverage continued with EBITDA margin improvement of 273 basis points over last year. Higher depreciation (+24% YoY) due to store additions resulted in an adjusted loss of ₹12.9 crore, significantly reduced compared with ₹51.1 crore in Q1FY26. The company added 12 new stores in Q1FY27, taking its total store count to 352 stores across 139 cities, with the management maintaining guidance of 20% revenue growth through store expansion.
The company reported EBITDA margin expansion of 354 basis points year-on-year to 15% during the quarter, as reported by Moneycontrol. Operating leverage continued to improve during the quarter, with the reported EBITDA margin expanding by 354 basis points year-on-year to 15%. The company delivered pre-tax profit of ₹11.13 crore during the quarter, compared with a pre-tax loss of ₹32.78 crore in Q1 FY26. The company's cash flow generation remained strong, delivering standalone cash profit of ₹57 crore for the quarter, reinforcing the self-funding nature of its growth strategy. After reporting its first full year of positive reported PAT in FY26, BlueStone continued its profitability trajectory into FY27, with the performance particularly satisfying as it came despite the rise in custom duty on gold from 6% to 15%.
Repeat customers now account for roughly 60% of sales, with older stores delivering 39% same-store sales growth, while the company's overall customer base approaches one million, as reported by Moneycontrol. New customer additions eased to about 40,000 a quarter from 50,000, as higher gold prices pushed products out of the company's core ₹20,000-40,000 range. CEO Gaurav Singh Kushwaha commented that this performance is particularly satisfying as it came despite the rise in custom duty on gold from 6% to 15%, reflecting the structural drivers of a portfolio that remains relevant across price points through design and technique innovation. The company had delivered its first full year profitability in FY26, and remains confident that the trend would continue in FY27.
During the quarter, BlueStone expanded its retail footprint by adding 12 new stores, taking its total store count to 352 stores across 139 cities, as reported by The Economic Times. The company entered all 5 new cities being Tier 2 and Tier 3 regions, consistent with its conviction in these markets. The management has maintained its guidance of 20% revenue growth through store addition, with analysts expecting 75-80 new store additions per annum. Management expects SSSG to remain at 30% in the near term, which will remain the key revenue driver for the company. Analysts at ICICI Securities maintain a 'BUY' recommendation with a revised price target of ₹945, valuing the stock at 25x FY28E EV/EBITDA, expecting EBITDA margins to reach 14% in FY28E. Kotak Securities' Pankaj Kumar prefers Titan Company and Bluestone Jewellery as preferred picks over the next 12-18 months, citing strong sector demand outlook and the company's sustainable growth momentum.
