Bluestone’s Q4 profit was flattered by a 0.00% tax rate
Interest and depreciation reduced operating profit sharply, while other income of Rs 13.73 cr supported profit before tax of Rs 31.18 cr.
Filed 30 Jul 2026, 11:34 IST · Bluestone Jewellery & Lifestyle Ltd (BLUESTONE)
Key takeaways
- Bluestone reported consolidated Q4FY26 net profit of Rs 31.18 cr, equal to profit before tax because the tax rate was 0.00%.
- Interest of Rs 52.53 cr and depreciation of Rs 55.75 cr absorbed much of the Rs 125.73 cr operating profit before tax.
- The 18.45% operating margin was 3.49 percentage points above the 14.96% median for 94 Consumer Discretionary peers.
Price around the results
Operating profit held up before financing costs
The consolidated expense base of Rs 555.74 cr left Rs 125.73 cr of operating profit on revenue of Rs 681.47 cr, resulting in an operating margin of 18.45%. The margin places Bluestone above the 14.96% median among 94 Consumer Discretionary companies that have reported. Its margin was 3.49 percentage points above that median.
Interest and depreciation limited profit conversion
Interest of Rs 52.53 cr and depreciation of Rs 55.75 cr consumed much of operating profit before profit before tax fell to Rs 31.18 cr. Other income of Rs 13.73 cr was material relative to profit before tax, so reported earnings included a meaningful non-operating contribution. The 0.00% tax rate allowed the entire profit before tax to flow into net profit of Rs 31.18 cr and EPS of Rs 2.05.
Management outlined category expansion
Management said it plans dedicated stores for men’s and kids’ segments to improve product discovery and customer experience. The presentation also said the company is widening its portfolio across categories and exploring innovative materials. These initiatives point to expansion beyond the current product mix, but the quarter’s figures do not include a comparison with earlier periods.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 |
|---|---|
| Revenue | ₹681 cr |
| Other income | ₹14 cr |
| Expenses | ₹556 cr |
| Operating profit | ₹126 cr |
| Operating margin (%) | 18.45% |
| Interest | ₹53 cr |
| Depreciation | ₹56 cr |
| Profit before tax | ₹31 cr |
| Tax | ₹0 cr |
| Net profit | ₹31 cr |
| EPS (₹) | ₹2.05 |
Operating margin of 18.45% compares with a Consumer Discretionary sector median of 14.96% across 94 peers that have reported Q4FY26.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company plans dedicated stores to improve product discovery and customer experience for men’s and kids’ segments.
New initiatives
- The company is widening its portfolio across categories and exploring innovative materials.
What to watch
- Whether consolidated operating margin remains above 18.45% as the portfolio expands.
- Whether the tax rate remains at 0.00% or begins to reduce net-profit conversion.
- Whether interest remains below operating profit of Rs 125.73 cr as the store and category initiatives progress.