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BlueStone Jewellery and Lifestyle Limited — Q4 FY26 earnings call

Call held 24 Apr 2026

Management summary

BlueStone reported a strong Q4 FY26 with significant revenue growth and robust same-store sales, driven by its omnichannel model and expanding distribution. While inventory turns were impacted by gold price volatility and ESOP costs rose due to front-loaded accounting, management expressed confidence in long-term growth, margin expansion, and operational efficiency. The company plans continued store expansion and strategic brand building.

Highlights

Standalone revenue grew 49.1% year-on-year in Q4 FY26, demonstrating strong growth momentum.
Full-year FY26 revenues reached INR 2,441 crores, marking a milestone as the first full financial year as a listed company.
Same-store sales growth (SSSG) was 34% in Q4 FY26, indicating resilient demand and broad-based growth.
The company expanded its national footprint by adding 17 stores in Q4 and 65 stores for the full year, reaching 340 stores across 134 cities.
A&P spend as a percentage of revenue has come down from 12% to 6%, reflecting improved efficiency and focus on distribution.

Concerns

Inventory turns fell from 1.3x in FY25 to 1.13x in FY26, primarily due to the sharp increase in gold prices impacting closing inventory value.
ESOP cost saw an almost 80% rise over FY25, with an initial charge of INR 93 crores, due to front-loaded accounting for senior leadership alignment.
Studded share declined to about 55% in Q4 FY26, potentially influenced by consumers shifting towards plain gold due to price increases.

Key financials

3 periods

Headline

A&P Spend (current)
6%

Q4 FY26

Revenue Growth
49.1%
YoY +49.1%
SSSG
34%
YoY +34%
Studded Share
55%

FY26

Revenue
₹2,441 Cr
Inventory Turns
1.13×

What they filed

Q1 FY27: revenue up 49.6%, net profit up 117.2% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	373	587	461	493	514 +38%	749 +28%	681 +48%	737 +50%
Expenses	378	537	436	438	473	584	557	630
EBITDA	-4	50	25	55	40 +1010%	165 +229%	124 +396%	107 +95%
Margin	-1%	9%	5%	11%	8%	22%	18%	15%
Other income	11	16	23	12	12	11	15	15
Interest	55	53	54	53	52	53	53	55
Depreciation	36	40	45	49	51	54	56	60
Profit before tax	-84	-27	-51	-35	-52 +38%	69 +356%	31 +161%	6 +117%
Tax rate	0%	0%	0%	0%	0%	0%	0%	0%
Net profit	-84	-27	-51	-35	-52 +38%	69 +356%	31 +161%	6 +117%
EPS	-25.96	-7.94	-14.51	-9.80	-3.42	4.57	2.10	0.46

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Store Expansion

Annual Distribution Growth Store Expansion · annual basis · High confidence 20%

So I think generally what we have maintained or what we are trying to maintain for last one to two years is adding close to 20% to our distribution on an annual basis.

— Gaurav Singh Kushwaha

A&P Spend

A&P Spend as % of Revenue A&P Spend · High confidence not drop below 6%

So I think over last two to three years we have come down from 12% to 6%, while in absolute terms it has grown up marginally, but the revenues outpaced it. So in percentage terms it has dropped from 12% to 6%. Now we are comfortable at that 6% level and as we move forward, we will increase it in absolute terms while keeping it static in terms of percentage.

— Gaurav Singh Kushwaha

Franchisee Model

Classical Franchisee Model Presence Franchisee Model · FY27 and FY28 · Medium confidence significant drop

From a trendline perspective, I think '27 and 28 should see a significant drop in terms of this classical franchisee model that we have had historically.

— Rumit Dugar

Store Productivity

Revenue per Store (peak utilization) Store Productivity · High confidence INR 14-15 crores

Okay. And you expect all the stores to eventually converge to a INR14 to INR15 crores kind of revenue per store at peak utilization, right? At the minimum.

— Rumit Dugar

ESOP Pool

Unallocated ESOP Pool ESOP Pool · next three to four years · Medium confidence not breaching 1.7%

Beyond this, we have around 1.7% of unallocated ESOP pool on a fully diluted basis and we don't foresee ourselves breaching that in next three to four years.

— Gaurav Singh Kushwaha

What to watch in Q1 FY27

ESOP Cost Trajectory

next quarter

Current Initial charge of INR 93 crores (first year of allocation), expected to drop to INR 58 crores then INR 28 crores.

Target Observe if ESOP costs drop as projected (towards INR 58 crores).

Why it matters

ESOP costs significantly impacted profitability this quarter; tracking its reduction is crucial for margin improvement.

And hence when we see almost INR93 crores of that charge came in the first year itself, but then it's dropping down to INR58 crores and then INR28 crores and then bottoming out.

Risks & concerns

Gold Price Volatility Impact on ROIC
medium

Sharp gold price increases inflate balance sheet inventory more than P&L, dampening ROIC. Management believes long-term ROIC remains strong as volatility normalizes.

Analyst acknowledged
Gold Price Impact on Gross Profit and Product Mix
medium

Consumers shifting to plain gold due to price increases puts pressure on gross profit. Management states their pricing is premium for both plain and studded, and the mix is additive, not substitutive.

Analyst acknowledged

Q&A highlights

6 direct, 1 evasive

Franchisee Store Strategy and Future Plans Direct

So out of our total portfolio of 340 stores, about 67 are franchisee stores. ... From a trendline perspective, I think '27 and 28 should see a significant drop in terms of this classical franchisee model that we have had historically.

Clarifies the current franchisee store count and management's strategy to phase out the classical franchisee model post-contract, impacting future distribution structure.

Asked by Akhil Gulecha

ESOP Cost Trajectory and Rationale Direct

So I think one of the thoughts that we had before going IPO was to strengthen our management team. So Sudeep, Rumit, Vipin, Mikhil, Harshit, so essentially these are the five top management folks beyond me. ... Secondly, a lot of this ESOP were actually allocated, around 50%-60% of these were allocated a couple of years prior to going IPO to make sure that that alignment is there for next six, seven years at least as we prove ourselves in the public markets also. ... And hence when we see almost INR93 crores of that charge came in the first year itself, but then it's dropping down to INR58 crores and then INR28 crores and then bottoming out.

Explains the significant rise in ESOP costs as a front-loaded accounting impact for senior management alignment post-IPO, with a clear trajectory for future reduction.

Asked by Akhil Gulecha

Inventory Turns Decline and Gold Price Impact Direct

So I think this year one of the most, one of the kind of one-offs that happened in this financial year was the sharp increase in gold, which has actually led to a very sharp increase in the value of closing inventory. ... Otherwise, if I were to normalize for that, I don't think the inventory turns should have changed that much, especially because we are calculating that on the closing inventory.

Identifies the primary reason for the decline in inventory turns (from 1.3x to 1.13x) as the sharp increase in gold prices inflating inventory value, suggesting it's a temporary effect.

Asked by Adityapal

Mature Store Productivity and Inventory Turns Direct

So the right way to look at it is, how mature stores are performing and as more and more stores move towards maturity, the company-wide inventory turns will also kind of tend to go towards that. So internally we track that obviously and I think mature stores, the stores which have seen more than three to four years of operations, there we see these turns to be hovering somewhere between 1.7 to 1.9.

Provides insight into the productivity of mature stores (1.7-1.9x turns) and how their increasing number will positively impact overall company inventory turns.

Asked by Adityapal

Revision of Store Expansion Plan Direct

I think just to contextualize, we should look at how the external operating environment has been specifically from a gold price perspective. And I think a lot of the decisions that we take are in context of the broader operating environment. The gold price has seen a significant increase; we need to obviously make sure that we have enough conviction from a demand behaviour perspective as to how the demand is going to react to such a sharp increase in gold price.

Explains the rationale behind adjusting the store expansion pace (from 290 new stores in RHP to 65 in FY26 and 20% annual growth) due to external factors like gold price volatility.

Asked by Vikram Devanathan

Sustainability of Store Growth and Total Store Base Direct

So, let me sort of contextualize this question in terms of the market opportunity set. You know, as you all know, there are very few pan-India brands in such a large category which are close to $80-$90 billion growing at very solid pace. ... I think a 20% CAGR on distribution is a fairly good number which we can continue to deliver over several years.

Management reiterates confidence in sustaining 20% CAGR for distribution growth for several years, citing the large and underpenetrated market opportunity.

Asked by Vikram Devanathan

March Exit Rate for Q4 FY26 Evasive

So no specific commentary on March exit, but as we continue to work on our categories and our merchandise specifically, we see the results getting better and better. So the momentum has only strengthened. I think with every passing day, it's only strengthening. There is much I can't comment on a specific number, but there is still some juice left there.

Management confirms strong momentum but declines to provide a specific quantitative exit rate for March, leaving investors to infer the exact performance.

Asked by Harish Advani

Studded vs. Gold Mix Recovery Partial

So I think last one year there has been quite an upheaval in terms of the way gold prices moved. So obviously consumer tends to anticipate and have one's own kind of mindset around the buying behaviour fundamentally. From our point of view, I feel that for us it's like looking at what we've built, the overall network which has its own cost base and kind of operating leverage. ... I think our thinking on approaching this from a product portfolio and product development point of view fundamentally nothing has shifted on that aspect.

Analyst asks about recovery of studded share to 60-65%, but management's response focuses on broader portfolio strategy and consumer behavior rather than giving a direct numerical target for the mix.

Asked by Harish Advani

2 min read 6 chapters

Detailed narrative

Strong Q4 FY26 Performance and Full-Year Overview

BlueStone reported a robust Q4 FY26 with standalone revenue growing 49.1% year-on-year, contributing to a full-year revenue of INR 2,441 crores. This marks a milestone as the company's first full financial year as a listed entity, delivering four quarters of earnings post-listing. The period demonstrated strong growth momentum, deepening distribution penetration, and significant improvement in cohort productivity, setting a positive trajectory for the upcoming fiscal year.

Omnichannel Strategy and Distribution Expansion

The company's omnichannel model, seamlessly integrating digital and physical retail, continues to be a key driver of performance. As of March 26, BlueStone operated 340 stores across 134 cities, adding 17 stores during Q4 and 65 stores for the full year, significantly strengthening its national footprint. Management aims for a 20% annual growth in distribution, believing this mix of new and old stores provides good blended productivity.

Demand Resilience and Same-Store Sales Growth (SSSG)

Consumer demand remained resilient in Q4 FY26, with same-store sales growth (SSSG) at 34%. This growth was broad-based across all three months of the quarter, demonstrating the resilience of the demand environment. Management noted that this SSSG is a return to normal levels, as previous anomalies were due to sharp gold price increases, and they do not see stores capping out in terms of their potential.

Impact of Gold Price Volatility on Inventory and Mix

The sharp increase in gold prices during the financial year led to a disproportionately higher value of closing inventory, causing inventory turns to fall from 1.3x in FY25 to 1.13x in FY26. This volatility also influenced the product mix, with studded share declining to about 55% in Q4. Management expects inventory efficiency to improve as gold prices normalize and believes their premium pricing strategy applies to both plain gold and studded categories.

ESOP Costs and Management Alignment

ESOP costs saw an almost 80% rise over FY25, with an initial charge of INR 93 crores attributed to front-loaded accounting for options allocated to senior leadership. Approximately 90% of ESOPs are with the top six people, aimed at aligning management with long-term shareholder objectives. Management expects these costs to drop to INR 58 crores and then INR 28 crores in subsequent years, as the vesting period for many options is over six to seven years.

Marketing and Brand Building Strategy

BlueStone's A&P spend as a percentage of revenue has decreased from 12% to 6% over the past two to three years. The company plans to maintain this percentage while increasing absolute spend, shifting from performance marketing to significant investments in brand building. This strategy is intended to drive long-term growth and expand the customer base, moving beyond tactical, sales-driven online marketing.

This is an AI-generated summary of a publicly available earnings call transcript.

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