BlueStone earnings for the second quarter of fiscal 2027 showed revenue rising 44% year on year and EBITDA more than doubling, as the jewellery retailer surpassed 1 million customers. In its October 23, 2026 earnings-call update, management highlighted customer growth and store expansion, while acknowledging that higher gold prices accounted for much of the increase in average purchase value.
Key Takeaways
- BlueStone recorded its fourth consecutive profitable quarter on a standalone basis.
- Gold inflation drove much of the roughly 30% rise in average order value.
- An in-principle approval for ₹300 crore of non-convertible debentures targets refinancing higher-cost debt.
Table of Contents
- BlueStone earnings reflect growth and gold-price effects
- Online discovery supports expansion into smaller cities
- Product mix pressures margins as market share takes priority
- Debt refinancing remains at the approval stage
- Conclusion
BlueStone earnings reflect growth and gold-price effects
The 44% revenue increase combined customer growth with higher transaction values. Founder and Chief Executive Gaurav Singh Kushwaha said roughly 29% of the current growth reflected a natural uplift from higher gold prices on existing inventory, while also pointing to significant buyer growth.
Average order value rose approximately 30% year on year in Q2. That makes the headline revenue increase an imperfect measure of growth in customer activity alone: higher gold prices also increased the value of purchases.
Kushwaha expects a larger share of growth to come from buyers as gold prices stabilize, with that pattern becoming clearer in Q3. Separately, average order value fell sequentially as BlueStone expanded its entry-price assortment—a deliberate move to reach customers at lower purchase values.
| Item | Details |
|---|---|
| Same-store sales | Grew 28% in Q2. |
| Design range | Management cited more than 10,500 designs. |
| Kolkata format | The Park Street store is an experiment in additional product lines and jewellery techniques. |
| Potential format expansion | Management may test one or two more stores; a broader rollout has not been decided. |
Online discovery supports expansion into smaller cities
BlueStone’s digital-first retail model combines jewellery discovery through its website and mobile apps with purchases through its physical store network. That approach provides the background to management’s strategy of building online familiarity before opening stores in new markets.
The company expanded into seven new tier-2 and tier-3 cities. Kushwaha said store additions still span metros and tier-1 markets as well, and that online research is similarly important for customers in smaller cities.
Management sees customer age and life stage, rather than city tier, as the more meaningful distinction in product preferences. It also said the expanded entry-price range was producing visible results, although further gains would take time as products and marketing reached customers.
Product mix pressures margins as market share takes priority
Contribution margin declined 50 basis points year on year as the mix of studded and gold jewellery changed. Chief Financial Officer Rumit Dugar said manufacturing productivity gains from factory consolidation, together with savings in logistics, hallmarking, certification and payment processing, helped cushion the effect.
Dugar said the aim was not to keep lifting contribution margin, but to build market share and repeat purchases. Management expects advertising and marketing spending to remain around 5.7% of revenue in the medium term, with a gradual reduction toward 4.5% over four years.
Management also expects inventory productivity to improve as stores mature. Dugar said additional inventory would be allocated according to demonstrated capital productivity and returns, rather than a fixed entitlement for each store.
Debt refinancing remains at the approval stage
The board has given in-principle approval for a ₹300 crore non-convertible debenture fundraising. Dugar said its primary purpose was to replace higher-cost debt and lower the company’s blended borrowing cost; coupon and tenure had not yet been announced.
Asked how BlueStone would fund its longer-term ₹12,000 crore revenue target for 2030, Dugar cited internal cash generation, balance-sheet flexibility and customer advances and schemes. The target remains management guidance, not a reported result or a completed financing plan.
Conclusion
BlueStone’s next quarterly update will provide a clearer test of management’s expectation that buyer growth can contribute more as gold-price effects moderate. The company also plans to announce the debenture coupon and tenure when the financing is rolled out.
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