Bluestone’s losses surge 56% in FY25; online sales make up just 7%

Vertically integrated jewellery brand Bluestone has reduced the size of its IPO, as per its Red Herring Prospectus (RHP). The cut in both primary and secondary components comes amid a 56% year-on-year rise in losses, which outpaced revenue growth in the last fiscal year (FY25).

Bluestone’s revenue from operations increased by 40% year-on-year to Rs 1,770 crore in the fiscal year ending March 2025 from Rs 1,266 crore in FY24, according to its restated financial statement given in RHP.

The company's sole revenue stream was the sale of diamond, gold, platinum, gemstone, and pearl jewelry, with an average order value (AOV) of Rs 47,671 in FY25. This growth was steered by increasing store maturity and a broader product portfolio. The Bengaluru-based company operated 275 stores across 117 cities in 26 states and union territories by March 2025.

Meanwhile, online sales contributed only 6.66% of the total sales, while the rest of the income came from stores and other channels.

On the expense side, Bluestone’s cost of materials remained its largest expense head, which increased by 46% to Rs 1,098 crore and accounted for 54% of total expenses. Employee benefit expenses rose 47% to Rs 203 crore, while advertising costs stood at Rs 159 crore, up 28% from FY24. 

Other operational expenses and finance costs contributed another Rs 643 crore. Overall, total expenses rose 42% to Rs 2,050 crore in the last fiscal year (FY25) from Rs 1,446 crore in FY24.

With Bluestone’s expenses growing faster than revenue, its net loss widened by 56% to Rs 222 crore in FY25, from Rs 142 crore in FY24. Despite this, the company achieved a positive EBITDA of Rs 133 crore, with an EBITDA margin of 7.27% in the last fiscal year.

On a unit basis, the company spent Rs 1.16 to earn a rupee of operating revenue in FY25. As of March 2025, Bluestone had current assets worth Rs 2,130 crore, having Rs 187 crore in cash and bank balances.

In FY25, Bluestone made two strategic investments. The company acquired a controlling stake in Ethereal House Private Limited (EHPL) for Rs 17 crore and subscribed to shares of Redefine Fashion Private Limited for Rs 11 crore. It is important to note that EHPL had no operations or significant assets, and its acquisition was treated as a corporate control transaction without goodwill or asset revaluation. Consequently, all FY25 figures are consolidated, while FY24 figures represent the standalone balance sheet.