• Revenue grew 49.1% YoY in Q4 FY26, with full year revenue reaching Rs 2,441 crore
• Same-store sales growth (SSG) of 34% in Q4, with homogeneous growth across all three months of the quarter
• Expanded store footprint to 340 stores across 134 cities (added 17 stores in Q4, 65 stores for full year)
• Successfully recalibrated entry-level product portfolio in response to gold price volatility, with benefits visible in Q4
• Demonstrated strong operating leverage with EBITDA margin expansion despite fixed cost base
• Mature stores (3-4+ years old) achieving inventory turns of 1.7-1.9x, with revenue productivity of ~14.4 crore demonstrated by FY19-20 cohort
• Launched industry-first exclusive men's and kids jewelry store format to expand addressable market
• 67 out of 340 stores are franchisee-owned (expected to decline significantly in FY27-28 as contracts expire)

Bluestone delivered strong Q4 FY26 results with 49.1% revenue growth and impressive 34% same-store sales growth, demonstrating successful recovery from gold price volatility through product portfolio recalibration. Management expressed high confidence in the large market opportunity, citing their unique omnichannel positioning, vertical integration capabilities, and plans to maintain ~20% annual store expansion while improving store productivity toward 14-15 crore per mature store.

Bluestone reported standalone revenue of Rs 2,441 crore for FY26, with Q4 revenue growth of 49.1% YoY. The company demonstrated strong operating leverage with EBITDA improvement despite elevated ESOP costs (Rs 94 crore in FY26, tapering to Rs 58 crore in FY27 and Rs 28 crore in FY28). Gross profit grew 36% YoY in Q4 (excluding inventory gains), with some margin pressure due to product mix shift toward plain gold (studded mix declined to ~55% in Q4 vs 68% in FY25). The company closed FY26 with inventory of Rs 2,652 crore, with inventory turns impacted by gold price appreciation. Mature stores demonstrate superior economics with inventory turns of 1.7-1.9x versus company average of 1.13x. Balance sheet remains strong with solid capitalization to support expansion plans. Customer advances and liabilities increased to Rs 1,001 crore, reflecting strong customer engagement and repeat behavior.

Management conveyed strong confidence in the business trajectory and market opportunity, emphasizing their unique positioning to capture the large, underpenetrated design-led jewelry market. CEO Gaurav Singh highlighted the successful navigation of gold price volatility through vertically integrated manufacturing capabilities that enabled rapid product portfolio adjustments. CMO Vipin Sharma emphasized the strategic focus on lifestyle jewelry that moves from 'lockers to wardrobes' and the company's design-first, consumer-centric approach. Management stressed three core pillars: deepening customer lifecycle engagement, building brand presence while sweating the fixed cost base, and improving capital productivity. They expressed comfort with ~20% annual store expansion rate and confidence that the large Pan India opportunity supports multi-year growth runway. Management was transparent about tactical decisions to moderate store openings during peak gold volatility, demonstrating prudent capital allocation. The tone was decidedly optimistic about forward momentum, with particular emphasis on Q4's strong exit rate and continued improvement in merchandise execution.

The primary challenge discussed was the impact of unprecedented gold price increases (nearly 100% over 15-18 months), which caused temporary dislocation in merchandise at certain price points and categories, leading to softer SSG in Q2-Q3 FY26. This also created ROIC pressure as inventory values inflated faster than revenue growth. The shift in product mix toward plain gold (studded mix declining from 68% to ~55%) has created gross margin pressure, with gross profit growing only 36% versus 50% revenue growth in Q4. Inventory turns declined from 1.3x in FY25 to 1.13x in FY26, partly due to gold price mark-to-market effects and manufacturing inventory for vertical integration. Management acknowledged that achieving sustainable mature store economics across the expanding base remains an execution challenge. The company faces the structural issue of higher working capital intensity compared to franchisee-heavy competitors. Store relocation costs were cited as a historical challenge that led to opening larger format stores. Competition in the design-led jewelry segment remains, though management views the market gap as still large and underpenetrated. Sequential margin variations due to fixed cost leverage and seasonality (Q3 being strongest) create quarterly volatility.

Revenue Outlook: No specific numerical guidance provided; management indicated confidence in continued strong growth trajectory based on Q4 exit momentum

Margin Outlook: Continued operating leverage expected as revenue scales, with margins expected to benefit from stabilized gold prices and improved mix; gross margins to remain premium despite product mix given design-led pricing power

Key Targets:

• Maintain ~20% annual store expansion rate going forward
• Target mature store revenue of minimum Rs 14-15 crore per store
• Franchisee store count to decline significantly in FY27-28 as contracts expire
• Marketing spend to remain at ~6% of revenue in percentage terms (growing in absolute terms)
• Inventory turns to improve as gold prices stabilize and mature store mix increases

The Q&A session revealed analysts were primarily focused on understanding three areas: (1) the margin and mix dynamics given the shift toward plain gold and its impact on profitability, (2) inventory management and working capital efficiency in light of gold price volatility, and (3) store expansion strategy and unit economics at maturity. Multiple questions probed the inventory turn decline, gross margin pressure, and deviation from original RHP store opening targets. Management consistently redirected focus to long-term structural drivers - the large underpenetrated market opportunity, operating leverage from fixed cost base, vertical integration enabling rapid product adaptation, and strong mature store economics. They acknowledged near-term tactical adjustments due to gold volatility but expressed high confidence in the business model and forward trajectory. Management was transparent about challenges while emphasizing that Q4 represented a return to normalized strong performance. Analysts also sought clarity on ESOP expenses (which management explained as front-loaded accounting of historical grants to align senior leadership) and the franchisee model wind-down. Overall, management successfully conveyed that recent headwinds were transitory gold-related issues rather than fundamental business model concerns, with Q4's strong 34% SSG and broad-based growth validating their thesis.