Bluestone Jewellery reported a significant 48.8% year-on-year increase in standalone revenue to Rs 733 crore for Q1FY27, leading to a 36% surge in its share price over three days. The company's robust performance was driven by strong consumer demand and strategic portfolio management, despite a rise in customs duty on gold.
The company achieved a same-store sales growth of 39% YoY and a remarkable 134.6% increase in standalone EBITDA to Rs 55 crore. Bluestone added 12 new stores in the first quarter, expanding its network to 352 stores across 139 cities. The EBITDA margin improved by 273 basis points, reflecting effective operating leverage.
Systematix has maintained a Buy rating on Bluestone with a target price of Rs 832, anticipating the addition of approximately 75 stores annually, reaching 571 outlets by FY29E. The brokerage's revenue estimates are based on an age-cohort framework, predicting improved store productivity as outlets mature.
“The strong start to FY27 by market leaders reinforces confidence in the sector's demand outlook. Within our coverage universe, we prefer Titan Company and Bluestone Jewellery as our preferred picks over the next 12–18 months.”
Pankaj Kumar, VP Fundamental Research at Kotak Securities
The outlook for Bluestone remains positive, with expectations of sustained consumer traction and brand strengthening. The proportion of stores over three years old is projected to rise significantly, enhancing overall network productivity.
Pankaj Kumar, VP Fundamental Research at Kotak Securities, expressed confidence in the sector's demand outlook, citing Bluestone and Titan Company as preferred picks over the next 12–18 months. Anil noted that stable gold prices and initiatives like gold exchange programs will bolster demand and customer engagement.
Background
Bluestone Jewellery has been on a positive trajectory since reporting its first full year of positive reported PAT in FY26. The company's strategic focus on expanding its store network and maintaining a relevant portfolio across price points has positioned it well in the market.
Bluestone's strong start to FY27 underscores its resilience in a challenging market environment. Investors will be keenly watching management commentary, festive season demand, and the pace of store expansion as key indicators of future performance.
