BlueStone targets 15% EBITDA margin as maturing stores fuel growth

BlueStone Jewellery reported ₹736 crore in April-June revenue and aims to double pre-Ind AS EBITDA margin from 7.5% to about 15% over four years. The retailer plans to add 70-80 stores annually while improving inventory turns at mature outlets.

— Source publishedTue, 21 Jul, 2026, 11:58 IST·First seen Tue, 21 Jul, 2026, 11:59 IST·Source CNBC-TV18 · Companies

What happened

BlueStone Jewellery expects maturing stores and operating leverage to lift pre-Ind AS EBITDA margin from 7.5% to about 15% within four years. It plans to add

Key facts

  • Pre-Ind AS EBITDA margin: 7.5% in June quarter, up 273 basis points year-on-year
  • Target EBITDA margin: about 15% over four years
  • April-June revenue: ₹736 crore
  • April-June profit: ₹5.9 crore
  • Reported margin: 14.63%
  • Same-store sales growth historically: around 30%
  • Annual store-addition target: 70-80 outlets
  • Investment per new store: ₹5-6 crore
  • Target inventory turnover at mature stores: 1.8-2 times
  • Market capitalisation: ₹9,833.72 crore
  • Stock price: ₹645.50
  • Stock gain: over 18% in past year

Why this matters

BlueStone’s expanding store network and improving mature-store economics make it a more credible scaled jewellery-platform partner or competitor.

What to watch

  • Comparable-store sales growth and sales-per-mature-store trends.
  • Pre-Ind AS EBITDA margin progression versus the 7.5% base and evidence of quarterly operating leverage.
  • Store opening pace, new-store payback periods, and the share of the network that is mature.
  • Inventory turns, inventory days, operating cash flow, and working-capital intensity relative to revenue growth.
  • Gold-price volatility, consumer downtrading, and demand elasticity in bridal versus discretionary categories.
  • Discounting, gross-margin movement, and competitive expansion by large organized jewellery chains.
  • Prioritize new stores in catchments with demonstrated bridal and repeat-purchase demand rather than maximizing headline store count.
  • Use mature-store inventory data to reduce SKU depth, improve replenishment cadence, and shift stock toward faster-turning designs and price points.
  • Increase private-label/design differentiation and omnichannel conversion to protect gross margin against organized-jewellery competition.
  • Manage gold-price exposure, inventory days, and vendor terms tightly so store expansion does not consume disproportionate operating cash flow.
  • Communicate cohort-level store economics, mature-store sales density, and inventory-turn progression to substantiate the four-year margin roadmap.