Jewellery brand posts 28% YoY revenue growth and sharp margin expansion, riding high on investment-led gold buying and early bets in the lab-grown diamond segment.
BlueStone Returns to Black in Q3 FY26
BlueStone has reported a net profit of ₹68.9 Cr in Q3 FY26, marking a sharp turnaround from a net loss of ₹26.8 Cr in the year-ago quarter and ₹52.1 Cr in Q2 FY26. The jewellery major’s rebound comes amid rising gold demand, improved operating leverage, and a growing retail footprint.
- Operating revenue surged 28% YoY and 46% QoQ to ₹748.7 Cr
- Including other income, total income stood at ₹759.4 Cr
- Total expenses rose just 9% YoY, widening the margin gap
Adjusted EBITDA rose 170% YoY to ₹190.8 Cr—clear evidence of operational efficiencies kicking in.
Key Growth Drivers: High AOV and Expanding Store Network
The company’s performance was buoyed by rising average order value, which soared 44% YoY to ₹72,984, and a 25% YoY increase in customer count to 9 lakh users.
- BlueStone now operates 323 stores across 130 cities
- It added 12 stores in Q3 and 48 stores year-to-date
- Over 150 stores are nearing ₹10 Cr annual revenue per store
- Same-store sales growth stood at 12% YoY
“Volatility in gold prices helped investment-led segments like coins and chains but temporarily pushed entry-level SKUs out of reach,” said CFO Rumit Dugar.
Gold Price Volatility: A Double-Edged Sword
While rising gold prices spurred demand for pure gold products, they also slowed customer acquisition during November–December, particularly in BlueStone’s core first-time buyer segment.
- Coin and chain sales boosted volume but come with lower margins
- Compared to traditional jewellers, BlueStone’s headline growth appeared modest, due to less exposure to commodity-style products
This dual impact reflects the price-sensitivity of BlueStone’s core base and underscores the need for category diversification—a path the company is actively pursuing.
Strategic Bet: Lab-Grown Diamonds
BlueStone also made a ₹25.2 Cr investment in its lab-grown diamond subsidiary, Ethereal House, during the quarter, entering a high-growth vertical alongside peers like CaratLane, Pome (Tata), Giva, and Réia.
- Ethera, the brand under Ethereal House, was founded in August 2024 by former MPL executives
- BlueStone acquired the brand in early 2025; CEO Gaurav Singh Kushwaha now serves as a non-executive director
- The move aligns with the broader shift toward sustainable, tech-enabled jewellery consumption
“The lab-grown segment is exploding, and we want to be early in building credibility and design leadership,” Dugar noted.
Outlook: Profitable Growth with Diversified Playbook
After two loss-making quarters, BlueStone’s return to profitability demonstrates the strength of its blended model—offline expansion, data-driven product decisions, and a shift to newer, scalable categories.
With the lab-grown diamond vertical gaining momentum and unit economics stabilizing, the company is well-positioned to balance margin growth with new customer acquisition.
Will BlueStone sustain this profitability trend across volatile commodity cycles? That will depend on how quickly it scales its newer verticals while maintaining same-store productivity.
TL;DR:
BlueStone posted a ₹68.9 Cr net profit in Q3 FY26, rebounding from a ₹26.8 Cr loss YoY. Revenue grew 28% YoY to ₹748.7 Cr, driven by gold demand and strong AOV growth. It also invested ₹25.2 Cr in its lab-grown diamond venture, Ethereal House, to tap into a fast-growing segment.
AI summary:
- Q3 FY26 net profit at ₹68.9 Cr vs ₹26.8 Cr loss YoY
- Revenue rose 28% YoY, EBITDA jumped 170%
- AOV up 44% YoY to ₹72,984; 25% rise in customer base
- Entered lab-grown diamond space via Ethereal House investment
- Added 12 stores in Q3; 323 stores total across 130 cities
