Why BlueStone shares surged 20% after Q1 results

Shares of BlueStone Jewellery and Lifestyle surged 20% to hit the upper circuit on Tuesday, a day after the omnichannel jewellery retailer reported a sharp improvement in June-quarter earnings, with investors cheering strong same-store sales growth, expanding margins and signs that its profitability is becoming sustainable.

The stock rally came despite the company reporting a relatively modest consolidated net profit of ₹7 crore for the quarter ended June 30, compared with a net loss of ₹35 crore a year earlier. Revenue from operations rose 49.6% year-on-year to ₹737 crore, while EBITDA jumped 93.7% to ₹107.7 crore. EBITDA margin expanded to 14.62% from 11.29% in the corresponding quarter last year.

Growth driven by existing stores

More than the headline earnings, investors appeared encouraged by BlueStone's operational performance, particularly its 39% same-store sales growth (SSSG), indicating that existing stores continued to generate strong demand even as the company expanded its retail footprint.

The retailer added 12 stores during the quarter, taking its network to 352 outlets across 139 cities, with all five new cities entered during the period located in Tier-II and Tier-III markets. The company also said its repeat customer base continued to support higher average order values, while the share of studded jewellery in revenue increased to 57% from 55% in the previous quarter, supporting a richer product mix.

Margins signal operating leverage

Another key trigger for the rally was the sharp improvement in profitability. While revenue grew nearly 50%, EBITDA rose at a much faster pace, reflecting operating leverage as costs increased more slowly than sales.

Management attributed the performance to sustained consumer demand despite continued volatility in gold prices and the increase in customs duty on gold from 6% to 15%.

"We have opened FY27 on a strong footing, with 49% YoY revenue growth and SSSG of 39% for the quarter. This performance is particularly satisfying as it came despite the rise in custom duty on gold from 6% to 15%, reflecting the structural drivers we have consistently spoken about – a portfolio that stays relevant across price points through design and technique innovation," managing director and CEO Gaurav Singh Kushwaha said.

Kushwaha added that the company's operating performance reflected "the embedded leverage in the business", with pre-Ind AS EBITDA growing nearly three times faster than revenue, while standalone cash profit stood at ₹57 crore during the quarter.

Having delivered its first full year of reported profitability in FY26, BlueStone's June-quarter performance reinforced investor confidence that the digital-first jewellery retailer can sustain earnings growth while continuing its aggressive expansion into newer markets.

Shares of BlueStone Jewellery and Lifestyle Ltd ended 20% higher at ₹732.45 apiece on the NSE on Tuesday. The stock has gained more than 43% since its listing in August 2025, although it remains below its all-time high of ₹793.