BlueStone Jewellery and Lifestyle manufactures and provides diamond, gold, platinum and studded jewellery under its flagship brand,BlueStone. As a digital-first direct-to-consumer (DTC) brand, focused on delivering a seamless omni-channel experience, it ranked as the second-largest digital-first omni-channel jewellery retailer in India by revenue in Fiscal 2024.

Product offerings include rings, earrings, necklaces, pendants, solitaires, bangles, bracelets and chains that cater to diverse customer segments and are retailed at varied price points. The prices of its products range from below Rs 5,000 to Rs 17,00,000 and above.

As of March 31, 2025, BlueStone had 91 collections (defined as a set of jewellery designs created with a specific theme) of jewellery products.

An omni-channel approach allows customers to have a cohesive shopping experience by offering them the ability to browse the products online, get assistance in-store, and make purchase decisions either online or at stores in-person. Its market share among omni-channel players in the jewellery industry was between 28% - 32% in 2024.

Studded jewellery accounted for 67.88%, 67.44% and 68.31% of revenue from operations in Fiscal 2025, 2024 and 2023, respectively.

Website and mobile application allow customers to browse over 7,400 designs, as of March 31, 2025. Customers are offered with a multitude of options to discover and interact with jewellery, including browsing online, 360-degree views of products, access to contemporary designs, ability to select store locations, ability to view store inventory, thereby creating an experiential and personalized shopping experience.

In FY25, online sales contributed 6.66% to revenue, and sales from stores 93.34%.

Focused on designing jewellery for women, men and couples between the ages of 25 to 45 years who value unique designs, modern styles and have a tendency to discover brands through social media or online channels.

The average order value increased from Rs 32,038 in FY23 to Rs 47,671 in FY25. Additionally, the number of customers grew from 3,90,959 in FY23 to 7,71,845 in FY25.

The pan-India network spans 275 stores across 117 cities in 26 States and Union Territories as of March 31, 2025, covering over 12,600 PIN codes.

Revenue contribution in FY25 reflects geographic diversity, North India 39.47%, South 24.34%, West 22.12%, and East 14.07%.

As of March 31, 2025, the store network comprised 200 owned stores and 75 franchised stores, with a total area exceeding 605,000 square feet. All franchisee stores are operated directly, with full responsibility for operating expenses and inventory management. Maintaining operational control over franchisee stores ensures consistent customer experience across all locations.

Within three months of opening, 75% of the stores reach break-even. Furthermore, average revenue per store was Rs 6.14 crore, Rs 6.06 crore, and Rs 3.16 crore in Fiscal 2025, 2024, and 2023, respectively.

Operates three manufacturing facilities located in Mumbai, Maharashtra; Jaipur, Rajasthan; and Surat, Gujarat. Manufacturing capacity has expanded over the years to meet rising volumes and product demand, with an additional facility currently under construction in Jaipur, Rajasthan.

Capacity utilization at the Mumbai facility was 98.57%, 78.19%, and 83.91% in Fiscal 2025, 2024, and 2023, respectively. The Jaipur facility recorded capacity utilization of 81.72%, 80.34%, and 31.75% in Fiscal 2025, 2024, and 2023, respectively. The Surat facility, which began operations in May 2024, achieved 68.25% capacity utilization in Fiscal 2025.

Plans to continue expanding its omni-channel presence by establishing over 290 new stores between Fiscal 2025 to Fiscal 2027.

Offer and its objects

The IPO consists of a fresh issue of equity shares worth up to Rs 820 crore, along with an offer for sale of 1,39,39,063 equity shares aggregating up to Rs 720.65 crore by existing shareholders, including Accel India III (Mauritius), Saama Capital II, Kalaari Capital Partners Opportunity Fund, among others.

Price band for the IPO is Rs 492 to Rs 517 per equity share of face value Re 1 each.

The objectives for the fresh issue includes Rs 750 crore for funding working capital requirement, and remaining amount for general corporate purposes.

Gaurav Singh Kushwaha is the Promoter. The promoters and promoter group hold an aggregate of 2,47,61,977 equity shares, aggregating to 18.28% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 16.36%.

The issue, through the book-building process, will open on 11 Aug 2025 and will close on 13 Aug 2025.

Strengths

Offers a wide range of products catering to diverse customer segments, supported by a pan-India presence across Tier-I, Tier-II, and Tier-III cities, enabling broad market reach and customer accessibility.

One of the few pan-India players to have built an omni-channel presence. This integrated approach enhances conversion rates by driving high-intent footfall, provides valuable insights for identifying optimal store locations, and contributes to higher store success rates and shorter payback periods.

Strong in-house manufacturing capabilities, with over 75% of total jewellery produced internally. This allows for rapid scaling to meet growing demand, quicker time-to-market for new collections, consistent quality, and tighter control over the supply chain.

Same Store Sales Growth (SSSG) stood at 72.06% in FY23, 51.16% in FY24, and 32.14% in FY25, reflecting strong year-on-year performance across the period.

The Repeat Revenue Ratio, which measures the revenue generated from customers placing more than one order, has steadily improved to 44.61% in Fiscal 2025, compared to 39.83% in 2024 and 34.67% in 2023. This growth reflects increasing customer loyalty.

Well placed to benefit from surge in demand for gold jewellery supported by rising disposable incomes, increasing urbanization, evolving fashion preferences, and a cultural affinity for gold.

Extensive experience of promoters and senior management personnel.

Weaknesses

Consistently operating at a loss since inception. Experienced loss of Rs 221.67 crore, Rs 142.24 crore and Rs 167.24 crore in Fiscal 2025, 2024 and 2023, respectively.

Exposed to the rising popularity and acceptance of lab-grown diamonds, which could potentially disrupt its traditional diamond segment.

There have been instances of non-compliance, including issues with secretarial and regulatory filings. Additionally, certain summons and requests for personal appearances have been received from the Directorate of Enforcement (ED) concerning some investments.

The promoter, Gaurav Singh Kushwaha, has pledged a portion of his equity shares with certain lenders. Any enforcement of this pledge by the lenders could result in a dilution of his shareholding, potentially undermining control and affecting business stability.

Reported negative cash flows from operating activities of Rs 665.82 crore in Fiscal 2025 and Rs 181.16 crore in Fiscal 2024, reflecting continued cash flow pressures from core operations.

The nature of the business requires maintaining sufficient inventories, leading to high inventory costs. Inventory as a percentage of revenue was 93.36% in FY25.

Experienced delays in payment of statutory dues in Fiscal 2024, along with delayed loan repayments in Fiscal 2023 and 2024. Failure to make timely payments in future may negatively affect the business’s financial stability and reputation.

Exposed to volatility in gold and diamond market prices, which can adversely affect product demand, inventory value, profitability, and operational scale.

Statutory Auditors have included certain emphasis of matters in their examination report.

Valuation

The financial comparison between FY24 and FY25 includes standalone figures for FY24 and consolidated figures for FY25. This reflects the company’s acquisition of a controlling stake in Ethereal House (EHPL) for Rs 16.79 crore and its subscription to shares of Redefine Fashion for Rs 10.5 crore during FY25. While the financials are not strictly comparable YoY due to the change in reporting structure, the comparison has been presented to offer directional insight into the company‘s growth and performance.

Consolidated net sales increased 40% to Rs 1770 crore in FY2025, compared to standalone figures for FY2024. The OPM decreased 1275 bps to negative 8.56%, leading to a loss of Rs 151.58 crore compared to profit of Rs 53.05 crore. OI increased 59% to Rs 60.03 crore. Interest cost fell 52% to Rs 66.66 crore. Depreciation cost fell 35% to Rs 61.69 crore. Tax expenses were nil, while net loss widened by 56% to Rs 221.67 crore.

As EPS is negative, the P/E ratio is not meaningful. Accordingly, EV/FY25 Sales has been used as a valuation metric.

At the higher price band of Rs 517, the offer is made at Post-issue EV/ FY25 Sales of 5.18 times, on a post-issue equity share capital of Rs 15.13 crore of face value of Re 1 each. As on Aug 8, 2025, listed industry peers such as Titan Company trades at 5.27 times its EV/ FY25 sales, Kalyan Jewellerstrades at 2.27 times, Senco Gold trades at 0.9 times and PC Jeweller trades at 5.21 times.