Bluestone stays resilient despite a turbulent quarter for India’s jewellery sector
Bluestone Jewellery reported a ₹6-crore profit in Q1 FY27 as revenue rose 49.6% to ₹736.8 crore, with repeat customers offsetting an industry-wide slowdown triggered by a gold import duty hike.
Bengaluru: Despite a slowdown in India's jewellery industry during the April-June quarter, Bluestone Jewellery and Lifestyle Ltd stayed resilient, buoyed by its focus on everyday, design-led jewellery and a growing base of repeat customers.
Unlike investment-led gold buyers, Bluestone's customers typically come with a fixed budget and continue to buy within that price range even when gold prices rise, said Gaurav Singh Kushwaha, founder and chief executive, during the company's June-quarter earnings call on Tuesday.
The Bengaluru-based jewellery retailer added 12 stores during the quarter, taking its network to 352 stores across 139 cities, even as rising gold prices affected its entry-level price band and slowed new customer acquisition, according to its June-quarter earnings call.
Repeat customers now account for roughly 60% of sales, with older stores delivering 39% same-store sales growth, while the company's overall customer base approaches one million, Bluestone said. New customer additions eased to about 40,000 a quarter from 50,000, as higher gold prices pushed products out of the company's core ₹20,000-40,000 range, Kushwaha said.
“Our endeavour is to actually generate more and more repeat business from the same customers,” he said, as Bluestone looks to deepen wallet share while rebuilding the pace of new customer acquisition.
The company reported consolidated revenue from operations of ₹736.8 crore in the April-June quarter, up 49.6% from a year earlier, while posting a net profit of ₹6 crore, compared with a loss of ₹34.7 crore in the same period last year.
Larger rivals show modest growth, change in strategy
The results come as larger rivals Titan Co. and Kalyan Jewellers India Ltd. reported slower growth in the same quarter, with the industry weighed down by steep increases in gold and silver import duties and elevated bullion prices. Bluestone is targeting ₹12,000 crore in revenue over the next four years and plans to lift operating margins to around 15% from 7.5% currently, the company said. Bluestone plans to continue expanding, particularly in tier II and tier III cities where lower rents support stronger unit economics.
BlueStone is India's second-largest digital-first omnichannel jewellery retailer by revenue and held a 26-30% share of the country's omnichannel casual jewellery segment in 2023, according to the company's draft red herring prospectus.
Bluestone's strategy is also backed by a broader structural shift in the jewellery market. In a 5 June report, Systematix Research said India's jewellery industry is evolving from an investment- and wedding-led category towards one driven by personal expression, particularly among independent women.
The brokerage said organised retailers are likely to gain market share as consumers increasingly prioritise trust and transparency. Bluestone is betting on this shift through lightweight, design-led jewellery, largely in the 14-carat and 18-carat range, and a business model built around frequent repeat purchases. Unlike Tanishq or Kalyan Jewellers' core wedding-led businesses, Bluestone competes more directly with newer formats such as Titan's Mia, CaratLane and Kalyan's Candere.
In a 10 June initiation report, ICICI Direct Research analysts Kaustubh Pawaskar and Abhishek Shankar said BlueStone is well-positioned to benefit from the increasing shift towards organised jewellery retail, aided by its digital-first, omnichannel model and focus on lightweight, design-led jewellery.
Demand softened after the government raised the effective import duty on gold and silver to 15% from 6% in May, but recovered through June, with management saying similar trends continued into July.
Making jewellery in-house
Bluestone's online-first strategy also continues to differentiate it, with more than 80% of first purchases originating online before customers visit stores to complete transactions. Systematix also highlighted Bluestone's vertically integrated manufacturing model as a competitive advantage, noting that the company manufactures more than 95% of its jewellery in-house. This allows it to test new designs at low cost, fulfil made-to-order jewellery within four to five days and refresh its product portfolio faster than traditional jewellers.
Bluestone's outperformance comes against a softer backdrop for the broader jewellery industry. After a strong start to the quarter driven by Akshaya Tritiya, demand weakened following the government's decision on 13 May to raise the effective import duty on gold and silver to 15% from 6%, elevated gold prices, and the adhik maas period. The World Gold Council, in an 18 June report, said gold price volatility prompted a ‘wait-and-watch’ approach among consumers across regions and segments.
Gold price inflation also eased during the quarter. Average gold prices rose 59% y-o-y in Q1 FY27, compared with about 80% year-on-year in Q4 FY26, while remaining broadly flat sequentially, according to a 6 July report by Motilal Oswal Financial Services. International gold prices have also corrected by about 30% from their January peak of around $5,600 per ounce to below $4,000, improving the outlook for consumer demand.
Bluestone shares hit the upper circuit on Tuesday on the results. and closed 19.4% higher on the National Stock Exchange. The benchmark Nifty 50 closed 0.21% lower.
Key takeaways
- Bluestone's April-June revenue rose 49.6% to ₹736.8 crore, marking its first profitable quarter.
- Repeat customers now generate 60% of sales as loyalty deepens, the company said.
- New customer additions slowed to 40,000 per quarter after gold prices surged.
- Higher gold import duty dented demand, but sales recovered strongly through June.
- Bluestone targets ₹12,000 crore revenue in four years, expanding into smaller cities.
About the Author
Vaeshnavi Kasthuril
Vaeshnavi reports on the business of consumption from Bengaluru, tracking how India shops, eats, and clicks. As a correspondent with Mint’s consumer economy team, she covers sectors ranging from retail and food and beverage to the rapid rise of quick commerce. She is a 2025 graduate of the Asian College of Journalism’s Bloomberg Business and Finance programme. She joined the Mint newsroom in May 2025 and this is her first stint in journalism. She holds a bachelor's degree in accounting and finance from the University of Madras. Vaeshnavi loves storytelling and breaking down complex jargon and numbers to bring out insightful yet simple-to-understand narratives. She is a Malayali but has spent most of her life living in Chennai. During her school days, she was an avid debater and loved participating in anything that involved holding a mic and standing on stage talking to a room filled with people. A diehard SRK fan, she can be found vibing to Indie music and Bollywood songs in her free time. She is a self-confessed cold coffee addict who won’t let a day pass without one, and is always café-hopping in search of the city’s best brew.
Source: Livemint — Companies
