1. Opening HookGold prices danced like Nifty on caffeine, yet BlueStone still managed to sparkle brighter than most of Dalal Street’s darlings. In a quarter where investors were hoarding gold ETFs instead of bangles, BlueStone flexed its omni-channel muscles and made bling cool again. Management claims it’s all strategy, not luck — though one might suspect a little alchemy. The festive cheer and Big Gold Exchange drive turned browsers into buyers. And just when analysts thought jewellery retail was peaking, BlueStone whispered, “Hold my necklace.”Keep reading — the real shine comes when you look beneath the polish. ✨
2. At a Glance
- Revenue up 37.4%:CFO insists it’s “execution,” not inflation — but gold prices helped polish the numbers.
- EBITDA margin 13.9%:That’s up from a meagre 1.4% last year. The turnaround has more sparkle than a diamond ring.
- Pre-IndAS EBITDA at 3.1%:From -5.6% last year — finally, profits are no longer allergic to sunlight.
- 311 Stores, +19 QoQ:Expansion spree continues; Bangalore to Bareilly now glitters.
- Customer base up 31% to 8.58 lakh:Even ChatGPT doesn’t scale this fast.
- SSSG at 11.1%:Not 43% like last year, but hey, custom duty cuts aren’t annual festivals.
3. Management’s Key Commentary
“Our omni-channel strategy is driving growth across 127 cities.”(Translation: Online ads + offline glamour = wallets opening faster than ever.)
“Margins expanded to 13.9% from 1.4% last year.”(Translation: From survival mode to champagne mode. 🥂)
“We recorded an inventory gain of ₹160 million this quarter.”(Translation: Gold prices did some heavy lifting; we just smiled for the camera.)
“Operating leverage is kicking in strongly.”(Translation: Fixed costs are fixed, but profits finally aren’t.)
“Our customer base grew 31% YoY to 858,000.”(Translation: Indians are clearly not done buying jewellery — or excuses to buy more.)
“Big Gold Exchange program saw high adoption.”(Translation: Old bangles turned into new EMIs. Brilliant marketing.)
“We’re investing in design, tech, and manufacturing efficiency.”(Translation: Let’s sound like Apple, but in karats instead of silicon. 😏)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue (₹ Cr) | 500+ | 364 | +37.4% | Strong growth despite gold tantrums |
| EBITDA Margin | 13.9% | 1.4% | +1250 bps | Retail glitter finally paid off |
| Pre-IndAS EBITDA | 3.1% | -5.6% | +870 bps | From negative to narrative |
| Contribution Margin | 31.8% | 28.5% | +300 bps | Efficiency goldmine |
| Stores | 311 | 233 | +33% | Retail gold rush |
| Same Store Sales Growth | 11.1% | 43% | -32 ppts | Base too high to clear |
| A&P as % of Revenue | 8.2% | 10.4% | -220 bps | Lower ads, stronger brand recall |
Gold did half the talking, operating leverage did the rest.
5. Analyst Questions
Percy (IIFL):Why are margins lower QoQ?Rumit (CFO):Festive ads came early — basically, Dussehra gatecrashed Diwali.
Tejas (Avendus):Who’s your closest peer?Gaurav (CEO):CaratLane. The rest sell nostalgia; we sell design.
Harish (Axis):Can we expect mid-single-digit EBITDA for FY26?Rumit:Already there, and climbing — just don’t call it guidance.
Alok (360One):Operating leverage or fairy dust?Gaurav:80% of incremental contribution drops to profit — that’s no magic, just math.
Kashyap
