Higher revenue did not prevent Bluestone’s Q2FY27 consolidated loss
Interest and depreciation outweighed operating profit, while the operating margin declined sharply from Q4FY26 despite revenue growth.
Filed 22 Oct 2026, 18:40 IST · after market close · Bluestone Jewellery & Lifestyle Ltd (BLUESTONE)
Key takeaways
- Bluestone reported a consolidated net loss of Rs -4.37 cr despite Rs 94.90 cr of operating profit.
- Operating margin fell to 12.74% from 18.45% in Q4FY26 as expenses, interest and depreciation rose alongside revenue.
- The 12.74% operating margin was 0.50 percentage points above the 12.24% median for 34 Consumer Discretionary peers.
Price around the results
Revenue growth did not convert into profit
These consolidated results show revenue rising from Rs 681.47 cr in Q4FY26 to Rs 745.03 cr, but operating profit falling from Rs 125.73 cr to Rs 94.90 cr. Interest increased from Rs 52.53 cr to Rs 58.38 cr, while depreciation rose from Rs 55.75 cr to Rs 63.87 cr. Together, interest and depreciation exceeded operating profit, leaving a profit before tax of Rs -4.37 cr.
Margin compression was the quarter’s main operating issue
Operating margin declined from 18.45% in Q4FY26 to 12.74%, indicating that the higher revenue did not offset the increase in expenses from Rs 555.74 cr to Rs 650.14 cr. Other income of Rs 22.98 cr partly reduced the loss, but did not reverse it. Tax was nil, so the reported net loss of Rs -4.37 cr received no tax-rate benefit.
Margin remains slightly above the peer median
Bluestone’s 12.74% operating margin was 0.50 percentage points above the 12.24% median among 34 Consumer Discretionary peers that had reported the quarter. The available quarterly trend still shows a sharp sequential step-down from 18.45% in Q4FY26, making margin retention more important than the small sector-relative advantage.
Expansion and cost disclosures from management
Management said the company had added 187 new stores as part of its pan-India footprint expansion. The presentation also described Bluestone as India’s second-largest digital-first omnichannel jewellery player, as reported by the company. Management presented an ESOP charge schedule covering FY27E through FY30E, which is a cost item to track separately from the current quarter’s operating performance.
No post-results market move to assess yet
The results were filed after market close on 22 October 2026. The stock’s post-results reaction is therefore not yet part of this readout.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹745 cr |
| Other income | ₹23 cr |
| Expenses | ₹650 cr |
| Operating profit | ₹95 cr |
| Operating margin (%) | 12.74% |
| Interest | ₹58 cr |
| Depreciation | ₹64 cr |
| Profit before tax | ₹-4 cr |
| Tax | ₹0 cr |
| Net profit | ₹-4 cr |
| EPS (₹) | ₹-0.21 |
Operating margin of 12.74% compares with a Consumer Discretionary sector median of 12.24% across 34 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.66% | -2.27% |
Volume on the results session was 1.78× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company presents an ESOP charge schedule covering FY27E through FY30E.
Expansion
- The company reports 187 new stores as part of its pan-India footprint expansion.
Competition
- BlueStone identifies itself as India's second-largest digital-first omnichannel jewellery player.
What to watch
- Whether operating margin recovers from 12.74% after the decline from 18.45% in Q4FY26.
- Whether interest and depreciation remain above Rs 58.38 cr and Rs 63.87 cr, respectively.
- How the reported 187-store expansion develops alongside the ESOP charge schedule through FY30E.