Bluestone reported a net loss of Rs 52.1 crore in Q2 FY26 (quarter ended September 30, 2025).
- This represents a reduction of about 38% year-on-year, compared to a loss of about Rs 84.5 crore in the same quarter last year.
- On the revenue front, Bluestone’s operating revenue rose about 37% to around Rs 513.6 crore from ~Rs 373.4 crore in Q2 FY25.
What’s Driving Performance
- The strong revenue growth is attributed to expanded distribution (online + physical stores) and increased demand during the festive period.
- Despite the loss, Bluestone reported a positive adjusted EBITDA of around Rs 71.4 crore in the quarter, indicating operational improvement.
- Expense control is improving: though major costs still remain high (e.g., materials, employee costs), the revenue growth is outpacing some expense growth.
Challenges & Considerations
- Although the year-on-year loss has narrowed, compared to the previous quarter (Q1 FY26) Bluestone’s loss increased — Q1 loss was around Rs 34.7 crore.
- The jewellery business remains exposed to commodity price fluctuations (especially gold, diamonds), which can impact margins and consumer demand.
- The shift to an omnichannel model (physical + online) carries expansion and operational cost risks — store leases, staffing, inventory etc.
- While adjusted EBITDA is positive, net losses persist — so Bluestone still needs to convert improved operations into actual profitability.
Implications for Investors & the Sector
- For investors: The narrowing of losses is a positive signal that Bluestone is moving toward breakeven, but profitability is not yet achieved.
- For the D2C / jewellery sector: Bluestone serves as a case study of a digital-native brand successfully scaling into physical retail and controlling losses — others may follow.
- For retail and consumer trends: The 37% growth in revenue suggests robust demand for jewellery (online + offline) in the festive season, which is a favourable indicator for the sector.
Outlook: What To Watch Going Forward
- Whether Bluestone can turn net profit in upcoming quarters, and how margin improvement evolves.
- The effect of commodity price volatility: if gold or diamond prices rise sharply, will Bluestone maintain margins and demand?
- Store expansion strategy: how many additional physical stores, how online vs offline mix pans out.
- Operational efficiencies: inventory turnover, supply chain, ESOP charges (noted as non-cash impact) and lease accounting (which had earlier impacted the bottom line) will be important. Inc42
Conclusion
Bluestone’s Q2 FY26 results show meaningful progress: a substantial 37% revenue jump along with a 38% reduction in losses to Rs 52 crore. While still not profitable, the company is clearly heading in the right direction by scaling and improving operations. Investors and analysts should keep a close eye on the next few quarters to see whether this momentum converts into sustained profitability.
