Editor’s Note
This analysis highlights BlueStone Jewellery’s remarkable Q3 FY26 performance, with a sharp swing to profitability and strong revenue growth. The figures underscore a significant operational turnaround for the omnichannel retailer.
BlueStone Jewellery & Lifestyle Ltd. delivered a dramatic turnaround in Q3 FY26, swinging to a consolidated net profit of ₹69.08 crores from a loss of ₹51.75 crores in the previous quarter, marking a staggering sequential improvement of 233.49%. The omnichannel jewellery retailer, with a market capitalisation of ₹6,766 crores, posted net sales of ₹748.65 crores for the October-December quarter, representing robust growth of 45.76% quarter-on-quarter and 27.52% year-on-year. However, the stock remains under pressure, trading at ₹472.30 as of January 22, 2026, down 33.41% over the past three months despite an 11.38% surge in the latest trading session.
Q3 FY26 Net Profit
₹69.08 Cr
▲ 233.49% QoQ
Revenue Growth
+45.76% QoQ | +27.52% YoY
Operating Margin
22.21%
▲ from 8.11% in Q2
PAT Margin
9.20%
vs -10.14% in Q2
The third quarter performance represents a sharp reversal from the consecutive losses recorded in Q1 and Q2 FY26, driven primarily by the festive and wedding season demand that traditionally bolsters jewellery sales. The company’s operating profit before depreciation, interest, and tax (excluding other income) surged to ₹166.30 crores, commanding an impressive operating margin of 22.21%—the highest in recent quarters. This dramatic margin expansion from just 8.11% in Q2 FY26 reflects both operating leverage benefits from higher sales volumes and improved cost management during the peak season.
Despite this quarterly triumph, BlueStone’s stock has faced significant headwinds, trading 40.44% below its 52-week high of ₹793.00. The company carries a “Strong Sell” rating with a score of just 16 out of 100, reflecting structural concerns around profitability sustainability, elevated debt levels, and weak return ratios. With 98.80% of promoter shares pledged and institutional holdings at 67.46%, the investment narrative remains complex and requires careful examination beyond the headline quarterly numbers.
| Quarter | Net Sales (₹ Cr) | QoQ Growth | Net Profit (₹ Cr) | QoQ Growth | Operating Margin | PAT Margin |
|---|---|---|---|---|---|---|
| Dec’25 (Q3) | 748.65 | +45.76% | 69.08 | +233.49% | 22.21% | 9.20% |
| Sep’25 (Q2) | 513.63 | +4.25% | -51.75 | +49.91% | 8.11% | -10.14% |
| Jun’25 (Q1) | 492.68 | +6.80% | -34.52 | -32.46% | 11.32% | -7.05% |
| Mar’25 (Q4) | 461.30 | -21.43% | -51.11 | +90.14% | 5.86% | -11.12% |
| Dec’24 (Q3) | 587.09 | +57.25% | -26.88 | -68.18% | 8.52% | -4.58% |
| Sep’24 (Q2) | 373.36 | +7.21% | -84.47 | +42.64% | -1.18% | -22.62% |
| Jun’24 (Q1) | 348.24 | — | -59.22 | — | 0.57% | -17.01% |
BlueStone’s Q3 FY26 financial performance showcased the inherent seasonality of the jewellery retail business, with the October-December quarter capturing the crucial festive and wedding season. Net sales of ₹748.65 crores represented the highest quarterly revenue in the company’s recent history, surging 45.76% sequentially from ₹513.63 crores in Q2 FY26 and growing 27.52% year-on-year from ₹587.09 crores in Q3 FY25. This growth trajectory demonstrates BlueStone’s ability to capture market share during peak demand periods, though the sustainability of such performance during non-festive quarters remains a critical question mark.
The operating profit before depreciation, interest, and tax (excluding other income) soared to ₹166.30 crores in Q3 FY26, commanding an impressive operating margin of 22.21%—a dramatic improvement from 8.11% in Q2 FY26 and 8.52% in Q3 FY25. This margin expansion reflects both volume leverage and improved cost absorption during the high-revenue quarter. Employee costs at ₹73.36 crores remained relatively stable compared to ₹72.09 crores in the previous quarter, indicating that the company managed to scale operations without proportional increases in workforce expenses.
Q3 FY26 Revenue
₹748.65 Cr
▲ 45.76% QoQ | ▲ 27.52% YoY
Q3 FY26 Net Profit
₹69.08 Cr
vs ₹-51.75 Cr in Q2
Operating Margin (Excl OI)
22.21%
▲ from 8.11% in Q2
PAT Margin
9.20%
vs -10.14% in Q2
However, the profit before tax of ₹68.85 crores in Q3 FY26, while positive, must be viewed in the context of substantial interest costs of ₹52.59 crores and depreciation of ₹54.01 crores. The company’s interest burden has remained elevated and relatively stable across recent quarters, reflecting the debt-heavy capital structure with a debt-to-equity ratio of 2.40. Notably, BlueStone paid zero tax during the quarter, continuing a pattern observed across all recent quarters, likely due to carried-forward losses offsetting current period profits.
The quality of earnings presents a mixed picture. While the operating profit surge is impressive, the company’s full-year FY25 performance showed an operating margin of just 4.20% and a net loss of ₹219 crores, underscoring the challenge of sustaining profitability across all quarters. The nine-month period ending December 2025 shows cumulative losses narrowing but still negative, highlighting that one strong quarter doesn’t erase the structural profitability challenges facing the business model.