BlueStone, the Bengaluru-based jewellery retailer that began as an online store and now operates a growing network of physical showrooms, has moved closer to sustained profitability, reporting strong revenue growth and a sharply narrower loss for the July-September quarter.
Revenue from operations rose about 45% to ₹745 crore in the second quarter of fiscal 2027 from ₹514 crore a year earlier, according to the company's unaudited consolidated results filed with the National Stock Exchange and reported by Entrackr on Thursday, October 22.
The net loss narrowed by 91.6% to ₹4.37 crore from ₹52 crore in the year-ago quarter. The company had reported a profit of about ₹6 crore in the April-June quarter.
First-half profit
For the first half of the fiscal year, BlueStone's revenue from operations rose 47.3% to ₹1,482 crore from ₹1,006 crore. More significantly, the company reported a net profit of ₹1.59 crore for the six months, compared with a net loss of ₹86.85 crore in the same period last year.
Including other income of ₹24 crore, total income for the quarter was ₹769 crore, up from ₹525 crore a year earlier and ₹752 crore in the previous quarter.
Jewellery sales remained the company's primary source of revenue.
The cost picture
Total expenditure rose 34% to ₹772 crore from ₹576 crore a year earlier, slower than revenue growth, which helped narrow the loss. The cost of materials, BlueStone's largest expense, rose 51.4% to ₹470 crore, reflecting both higher sales volumes and rising gold prices.
Employee benefit expenses stood at ₹70.58 crore, finance costs at ₹58.37 crore and depreciation at ₹63.87 crore. The finance and depreciation costs reflect the company's investment in physical stores, which require capital for fit-outs and inventory.
From online pioneer to omnichannel brand
Founded in 2011, BlueStone was one of India's early online jewellery retailers, betting that consumers would buy fine jewellery on the internet. Over time, the company found that physical stores were essential for building trust in a category where customers want to see and try on products before buying expensive items.
The company has since built a network of stores across Indian cities, combining physical retail with its online platform. This omnichannel model has helped it compete with established jewellers while appealing to younger, design-conscious buyers.
BlueStone listed on the stock exchanges in 2025. Its shares closed at ₹760.45 on Thursday, giving it a market capitalisation of ₹11,305 crore.
In September, the company appointed Amit Jain, the chief executive and co-founder of CarDekho Group, as a non-executive independent director.
The gold price effect
BlueStone's results come against the backdrop of high gold prices. Gold has surged over the past two years, driven by geopolitical tensions, central bank purchases and investor demand for safe-haven assets. On the MCX, gold December futures traded at about ₹1,44,850 per 10 grams on Thursday.
Higher gold prices increase the value of each piece of jewellery sold, boosting revenue for jewellers. But they can also deter buyers, particularly price-sensitive customers, and squeeze margins if companies cannot pass on costs. Many jewellers have responded by promoting lighter-weight designs and lower-carat gold, as well as diamond jewellery.
A competitive market
India is one of the world's largest jewellery markets, but it remains dominated by family-owned jewellers and regional chains. Organised players have been gaining share, driven by consumers' preference for certified purity, transparent pricing and modern store experiences.
BlueStone competes with Titan's Tanishq and CaratLane, Kalyan Jewellers, Malabar Gold and Diamonds, Senco Gold and many regional players. Competition for prime retail locations, talent and marketing attention is intense.
The rise of lab-grown diamonds is another factor reshaping the market, offering lower-cost alternatives to natural diamonds and attracting new customers, particularly younger buyers.
The festive season test
The October-December quarter is the most important period of the year for Indian jewellers, covering Dhanteras, Diwali and the wedding season. Strong festive demand could help BlueStone build on its first-half profit, while weak sales could put pressure on margins.
Retailers will be watching whether high gold prices dampen festive buying or whether consumers continue to purchase jewellery as both adornment and investment.
Why gold matters to Indian households
Jewellery occupies a unique place in Indian society. Gold is bought not just as adornment but as a store of wealth, a hedge against inflation and an essential part of weddings and religious festivals. Indian households are estimated to hold one of the largest private stocks of gold in the world, much of it in the form of jewellery.
This cultural attachment makes jewellery demand relatively resilient, even when prices rise. Families often buy gold for weddings regardless of price, although they may reduce the quantity or choose lighter designs. The government has introduced mandatory hallmarking to certify purity, which has helped organised jewellers by increasing consumer confidence in branded products.
The listed jewellery universe
BlueStone is part of a growing group of listed jewellery companies in India. Titan, which owns Tanishq, is one of the most valuable consumer companies in the country, while Kalyan Jewellers, Senco Gold, PC Jeweller and others are also listed. Investors have rewarded jewellers that combine strong brands with efficient expansion, and BlueStone's progress towards profitability will be judged against these peers.
Its digital heritage gives it an advantage in online sales and data-driven marketing, which can help attract younger customers and support efficient store expansion. The company's ability to keep growing revenue faster than costs will determine how quickly it can deliver sustained profits.
What comes next
BlueStone's results suggest its expansion strategy is beginning to deliver operating leverage, with revenue growing faster than costs. The key question for investors is whether the company can sustain profitability as it continues to open stores and invest in growth.
For India's new-age consumer companies, BlueStone's performance offers an encouraging example of a digital-first brand moving towards profitability by adapting its model to how Indian consumers actually shop. Investors will also watch the company's store expansion plans, inventory management and its ability to protect margins if gold prices remain volatile. A strong festive quarter would give BlueStone a solid foundation for the rest of the fiscal year and strengthen its case as one of the more promising listed consumer brands to emerge from India's startup ecosystem. Its trajectory will be followed closely by investors in new-age consumer stocks.
