Bluestone is a fast-growing omnichannel jewellery retailer. It differentiates itself with its wide array of designs and faster turnaround time (from manufacturing to shelf). However, its fast growth has come at the cost of losses over the past three years. Also, competition remains intense, with Titan/Caratlane being a key competitor.
Bluestone’s IPO of INR 15,406 million is aimed at providing liquidity to existing shareholders as well as raising capital for its working capital needs.
Offer Details of the IPO
The offer for sale includes shares from various selling shareholders, including:
Notably, Gaurav Singh Kushwaha, the promoter of the company, is not selling any shares in the offer for sale.
Price Band: Rs. 492 to Rs. 517 per Equity Share
Book Running Lead Managers (BRLMs):
Objectives of the IPO
In addition to providing liquidity to existing shareholders, proceeds from the fresh issue will be utilised to fund the company’s working capital requirements and general corporate purposes. The following amount has been earmarked:
Indian Jewellery Industry Overview
The Indian jewellery industry is a significant sector in the country’s economy, with a rich history and cultural significance. The industry is primarily driven by consumer demand for gold, diamond, and other precious stone-studded jewellery, which is an integral part of Indian tradition and culture. The end customers of the industry are primarily individuals who purchase jewellery for personal adornment, gifting, and investment purposes. The industry offers a wide range of products, including gold, diamond, and other precious stone-studded jewellery, as well as silver and platinum jewellery.
Key Segments within the Industry
The Indian jewellery industry can be broadly segmented into three key categories: gold jewellery, diamond jewellery, and other precious stone-studded jewellery. Gold jewellery is the largest segment, accounting for approximately 81% of the market share, followed by diamond jewellery, which accounts for around 16% of the market share. Other precious stone-studded jewellery, including silver and platinum jewellery, accounts for a smaller share of the market.
Within these segments, there are various sub-segments, including wedding wear, daily wear, and other occasion-led jewellery. Wedding wear jewellery is the largest sub-segment, driven by the cultural significance of jewellery in Indian weddings. Daily wear jewellery is a growing segment, driven by increasing consumer demand for affordable and stylish jewellery. Other occasion-led jewellery, including jewellery for festivals and special occasions, is also a significant segment in the industry.
Industry Size and Growth Trends
The Indian jewellery market has witnessed significant growth in recent years, driven by increasing demand for jewellery, particularly in the wedding and daily wear segments. As of 2024, the market size is estimated to be approximately INR 6,340 billion (approximately USD 75 billion) and has witnessed a CAGR of 13-15% over 2021-24.
Segment-wise Growth Trends
The market can be broadly segmented into three categories: wedding wear, daily wear, and other occasion-led wear. The wedding wear segment dominates the market, accounting for approximately 53% of the total market share. The daily wear segment is the second-largest, contributing around 36% to the total market.
Key Drivers of Growth
The growth of the Indian jewellery market can be attributed to several key drivers:
BlueStone Jewellery and Lifestyle Limited: A Comprehensive Overview
BlueStone Jewellery and Lifestyle Limited is a leading Indian jewellery retailer that has been revolutionising the way people buy and experience jewellery. The company was founded in 2011 by Gaurav Singh Kushwaha, who aimed to disrupt the traditional jewellery industry with his innovative approach. When the market was still dominated by unorganised retailers, Bluestone pioneered the e-commerce model for Jewellery.
Gaurav Singh Kushwaha, the founder and CEO of BlueStone, has a strong background in technology. Under his leadership, BlueStone has grown rapidly and has become one of the leading omnichannel jewellery retailers in India. BlueStone has marquee VC investors including Accel India, Kalaari Capital, and IvyCap Ventures.
Segments and Products
BlueStone operates in the following segments:
Technology and Innovation
BlueStone has been at the forefront of technology and innovation in the jewellery industry. The company has developed several proprietary technologies, including:
Competitive Landscape
The Indian jewellery market is highly competitive, with both domestic and international players vying for market share. The company operates in a crowded market with several established players.
Major Competitors
Strengths
Vertically Integrated Business Model
The company’s vertically integrated business model is a significant strength. It gives them control over their processes from raw material procurement, design, production, and marketing to sales. This integration enables them to incur limited costs in relation to third-party manufacturing, ensuring flexibility and control over their manufacturing processes and consistency in their product offerings.
Advanced Manufacturing Capabilities
The company’s use of 3D printing and CNC technology in its manufacturing process is another strength. These technologies allow them to create designs with intricate details and accuracy, reducing human error and ensuring uniformity across all their pieces. This results in a more cost-effective production cycle and enables them to maintain high standards of quality and innovation.
Strong Design Capabilities
The company’s ability to consistently offer new and modern designs of collections for its products is a significant strength. They analyse prevailing jewellery trends to select and decide on new designs of their products, leveraging proprietary algorithms to analyse customer preferences. This ensures that their product catalogue is trendy, fresh, and reflects current customer preferences.
Weaknesses
Dependence on Gold Prices
The company’s business is heavily dependent on gold prices, which can be volatile. An increase in gold prices can significantly impact their business, reducing consumer demand and increasing production costs.
High Operating Costs
The company’s operating costs are high, particularly for its store operations. They have a large number of stores across India, which incur significant costs in terms of rent, utilities, and employee salaries.
Limited Geographic Presence
Although the company has a strong presence in India, its geographic presence is limited. They do not have a significant presence in other countries, which restricts their growth opportunities.
Financial Profile
Strong Revenue Growth: Bluestone has experienced strong revenue growth over the past two years. Over the past two years, its revenue has more than doubled from INR 7.7 bn to INR 17.7 bn. The revenue growth can be attributed to several factors, including same-store sales growth, rising vintage of stores, and higher inventory levels. Additionally, the company’s expansion into new markets has also contributed to its revenue growth.
Profitability: A Mixed Bag While the company’s revenue growth has been impressive, its profitability has been a mixed bag. In Fiscal 2025, the company reported a loss of INR2,218.37 million, compared to a loss of INR1,422.36 million in Fiscal 2024. This loss can be attributed to the company’s expansion plans, including the opening of new stores and investments in marketing and advertising.
Strong improvement in repeat customers: The Repeat customer ratio has increased every year for the past 2 years. From 34% in FY23, it has increased to 44% in FY25. In addition, Average Order Value
Table: Financial Comparison
| Name of the company | P/E | Revenue from operation (INR million) | EPS (Diluted) | Net Worth (INR million) | RoNW (%) |
| Bluestone Jewellery and Lifestyle Limited | NA | 17,700.0 | -79.7 | 9,067.7 | -24.5 |
| Titan Company Limited | 88.1 | 604,560.0 | 37.6 | 116,240.0 | 28.7 |
| Kalyan Jewellers India Limited | 84.1 | 250,450.6 | 6.9 | 48,035.8 | 14.9 |
| Senco Gold Limited | 31.1 | 63,280.7 | 10.1 | 19,702.9 | 8.1 |
| Thangamayil Jewellery Ltd | 45.4 | 49,105.8 | 42.0 | 11,023.5 | 10.8 |
| PC Jeweller Limited | 22.7 | 22,446.0 | 0.7 | 61,928.0 | 9.3 |
Source: RHP
Table: Key Financials
| Particulars | FY23 | FY24 | FY25 |
| Net Revenue | 7707.3 | 12658.4 | 17700.0 |
| Net Revenue (year on year growth) (%) | 67.1 | 64.2 | 39.8 |
| Gross Profit | 2456.0 | 5115.0 | 6715.1 |
| Gross Margin (%) | 31.9 | 40.4 | 37.9 |
| EBITDA | -560.3 | 530.5 | 731.6 |
| EBITDA Margin (%) | -7.3 | 4.2 | 4.1 |
| Adjusted EBITDA | -272.8 | 1054.2 | 1278.1 |
| Adjusted EBITDA Margin (%) | -3.5 | 8.3 | 7.2 |
| Restated Profit After Tax for the year / period | -1672.4 | -1422.4 | -2218.4 |
| PAT Margin (%) | -21.7 | -11.2 | -12.5 |
Source: RHP
Table: Key Operating Metrics
| Particulars | FY23 | FY24 | FY25 |
| Average Inventory | 2807.2 | 6932.7 | 13218.8 |
| Inventory Turnover Ratio | 2.8 | 1.8 | 1.3 |
| ROCE (%) | -31.2 | -3.4 | -3.7 |
| Net Debt (with GML) | 1917.9 | 2555.3 | 6094.5 |
| Net Debt (without GML) | 1955.9 | 3259.2 | 6013.1 |
| Net Debt / Equity (with GML) | -2.7 | 0.7 | 0.7 |
| Net Debt / Equity (without GML) | -2.7 | 0.9 | 0.7 |
| Number of customers (life till date) | 390959.0 | 562729.0 | 771845.0 |
| AOV (₹) | 32038.4 | 41204.7 | 47671.3 |
| Studded Revenue (%) | 68.3 | 67.4 | 67.9 |
| Same Store Sales Growth – YoY | 72.1 | 51.2 | 32.1 |
| Number of stores | 155.0 | 192.0 | 275.0 |
| Number of cities | 71.0 | 80.0 | 117.0 |
| Advertising and Marketing cost | 841.4 | 1242.3 | 1591.7 |
| Advertising and Marketing cost as a percentage of revenue from operations (%) | 10.9 | 9.8 | 9.0 |
Source: RHP
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
