Bluestone Jewellery and Lifestyle Ltd is falling behind its ambitious target of reaching 500 stores by 2026-27, as volatile gold prices weigh on its expansion plans.
The Bengaluru-based jeweller had outlined in its draft red herring prospectus (DRHP) plans to add over 290 new stores between 2024-25 and 2026-27, but managed to add only 65 stores in 2025-26, taking its total to 340 outlets.
It now expects a more measured pace of expansion of about 20% annually, well short of its original target.
“We should look at how the external operating environment has been, specifically from a gold price perspective,” said Gaurav Singh Kushwaha, founder and chief executive of Bluestone, during the company’s March-quarter earnings call on Friday.
“ prices have seen a significant increase, and we need to ensure enough conviction from a demand behaviour perspective before accelerating store additions,” he added.
The company also indicated a gradual shift away from franchise-led expansion. Of the 340 stores, around 67 are franchise-owned. “The idea of franchise stores was largely as a capital access tool,” Kushwaha said. “Given our current scale and balance sheet strength, that structure does not make as much sense from a cost of capital perspective.”
“We enter 2026-27 with robust exit growth, with a clear focus on execution, driving deeper wallet share among existing customers while continuing to expand our customer base,” Kushwaha said.
However, it will continue to honour its existing five-year franchise agreements.
A profitable year
Despite the slowdown in store expansion, demand remained resilient in the March quarter, with same-store sales growth (SSSG) of 34%. SSSG measures the increase in sales from stores that have been open for at least a year, excluding revenue from newly opened outlets.
“Consumer demand trends remain resilient, and quality merchandise across price points remains a critical execution priority,” Kushwaha said.
For the year ended 31 March 2026, Bluestone’s revenue rose 38% to ₹2,436 crore from ₹1,770 crore a year ago, while the company’s net profit rose to ₹13 crore from a loss of ₹222 crore.
The company, which reported its first-ever quarterly profit of ₹68.8 crore in the third quarter, saw its net profit fall to ₹31 crore in the fourth quarter. It posted a net loss of ₹51.2 crore in the year-ago quarter.
In a 9 April analyst note, ICICI Direct said the company’s growth outlook remains supported by a large base of newer stores now entering a scale-up phase, which could improve store productivity and margins over the next two years.
The analysts expected revenue to grow about 32% annually through 2027-28 as repeat customers contribute a larger share of sales and mature stores generate higher throughput.
The omnichannel model, both online and offline retail, continued to be a key growth driver. The company operated 340 stores across 134 cities as of the end of March, strengthening its presence beyond metros in cities such as Ranchi and Lucknow.
The analysts said about 70-80% of Bluestone’s sales are digitally influenced before being completed in stores, giving it a stronger customer acquisition model than traditional jewellers.
Healthy outlook
The company also changed its product mix to offset the impact of higher gold prices, particularly by strengthening its entry-level offerings and introducing alternative materials without compromising on design. “The benefits of this recalibration are clearly visible in Q4 and are expected to continue through 2026-27,” said Vipin Sharma, chief merchandising officer, in the post-earnings call.
The jewellery retailer is also expanding into new segments to widen its customer base. It recently launched a dedicated store format focused on men’s and kids’ jewellery, targeting a relatively underpenetrated segment and aligning with changing consumer preferences for lifestyle-led jewellery purchases.
In the note, the analysts also said that Bluestone’s higher share of studded and design-led portfolio could help protect margins despite elevated gold prices, with gross margins remaining structurally above those of conventional gold jewellers.