BlueStone Jewellery and Lifestyle (BLUESTONE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 standalone revenue rose 43.9% YoY to INR 7,381mn; reported EBITDA increased 127.3% to INR 971mn, and pre-Ind AS EBITDA excluding inventory gains/losses rose 234.2% to INR 535mn.

• Standalone adjusted PAT was INR 196mn versus a loss of INR 268mn a year earlier; standalone reported PAT was INR 17mn, marking a fourth consecutive profitable quarter.

• Customer base reached 1,024,220, up 19.3% YoY; the network expanded to 379 stores across 146 cities, and the design range exceeded 10,500 designs.

Financial highlights

• H1 FY27 standalone revenue was INR 14,713mn, up 46.3% YoY; Q2 revenue was INR 7,381mn, up 43.9%.

• Reported EBITDA was INR 2,073mn in H1, up 108.8%, and INR 971mn in Q2, up 127.3%; Q2 reported EBITDA margin was 13.2%, up 483 bps.

• Pre-Ind AS EBITDA excluding inventory gains/losses was INR 1,083mn in H1, up 175.1%, and INR 535mn in Q2, up 234.2%; margins were 7.4% and 7.3%, respectively.

• Adjusted PAT was INR 334mn in H1 versus a loss of INR 481mn; consolidated H1 profit was INR 16mn, while Q2 consolidated PAT was a loss of INR 44mn.

• Standalone Q2 revenue grew 0.7% QoQ; consolidated Q2 revenue was INR 7,450mn, up 45.1% YoY.

Outlook and guidance

• Management expects medium-term operating leverage and pre-Ind AS margin expansion as revenue scales; store additions were front-loaded ahead of the festive period, with distribution objectives on track.

• Q2 A&P spend was 5.7% of revenue and H1 spend was 6.5%; management expects marketing spend to decline toward ~4.5% over four years, with ROI-led decisions and online as a key channel.

• Entry-level assortment corrections are progressing to restore affordability and customer reach; management sees runway in recruitment, repeat purchases and AOV growth.

• Inventory turns may improve as store cohorts mature and manufacturing inventory normalizes, particularly if gold prices stabilize.