BlueStone looks at store expansion, in-house manufacturing to drive growth

Omnichannel jewellery retailer BlueStone is doubling down on its strategy to increase margins and drive growth through its company-owned, company-operated (COCO) stores and in-house manufacturing capabilities, said founder and CEO Gaurav Singh Kushwaha.

“We were online-only for the first six or seven years. Then we realised that while online lets customers explore designs, but for conversions, stores still work very well. That’s how we became one of the two truly omnichannel players in this category,” Kushwaha told ET, adding that its stores generally turn profitable within two to three months of operation.

At the end of the June quarter, the company’s store count stood at 352, up from 340 it had at FY26-end. BlueStone plans to reach 700-800 stores and Rs 12,000 crore in revenue in the next four years.


On Monday, the Bengaluru-based company reported a 70% year-on-year (YoY) growth in its operating revenue to Rs 737 crore in the June quarter of FY27, up from Rs 493 crore reported in the same period last year. Kushwaha attributed this growth to strong same-store sales growth (SSSG) of 39% YoY.

Its net profit stood at Rs 6 crore in June, compared to a net loss of Rs 34.8 crore a year ago. However, on a sequential basis, net profit dropped by about 80% from the Rs 31 crore clocked in the March quarter.

BlueStone’s shares hit the 20% upper circuit at Rs 732.45 on Tuesday on the NSE after it posted its third consecutive quarter of net profit.

On manufacturing

Almost 95% of BlueStone’s product manufacturing is done in-house, which is core to the company’s operations.

“Manufacturing in-house will always give a marginal cost advantage. At the same time, it will also inflate our balance sheet, so there are pros and cons in terms of accounting numbers. It is a strategic decision for us. To maintain our superiority in the design we produce, which we believe is fundamental to our business,” he told ET.

On competition

According to Kushwaha, the category is currently valued at $80–90 billion and is expected to expand to $120–140 billion over the next 4-5 years, allowing players to grow significantly,.

“Market growth and changing consumer preference for wearable jewellery are some of the tailwinds for our growth,” he said, adding that the tailwinds could also support the entry of new direct-to-consumer (D2C) players in the market, but scaling requires a long gestation, customer trust, and brand recall.

The jewellery market is seeing the entry of D2C brands specialising in lab-grown diamonds, demi-fine jewellery, and fashion jewellery, all backed by venture capital funds.