The sharp rise in gold prices impacted omnichannel jewellery brand BlueStone’s store additions in the last financial year. In its Q4 earnings call, the company’s management said that the rise in gold prices resulted in the company taking a cautious, demand-driven approach for store additions.

“We need conviction from a demand perspective as to how it is going to react to such a sharp increase in gold price,” the company said. BlueStone also noted that it added 17 stores in Q4 FY26, which was a notable pickup. 

It is pertinent to note that as per BlueStone’s RHP filed in August last year, it had projected adding 290 stores across FY26 and FY27. However, the company managed to open only 65 stores in FY26. 

Overall, BlueStone has 340 stores across 134 towns and cities across the country.

Notably, gold prices have surged to nearly ₹1.42 Lakh per 10 gram (24K) from around ₹78,000 in 2024. This has also impacted BlueStone’s inventory turnover, which fell to 1.13X in FY26 from 1.34X in FY25.  As per the company, the difference was not because of new inventory push in stores but due to gold price revaluation on closing inventory.

For context, inventory turnover measures how many times a company’s inventory is sold and replaced over a specific period. 

High gold prices also negatively impact ROIC (return on invested capital). However, the company’s management said it views the nearly 100% increase in gold price over the past 15-18 months as a short-term anomaly. BlueStone expects long-term gold price trends to normalise, resulting in improvement in ROIC. 

Yesterday, BlueStone reported a net profit of ₹31.2 Cr for the fourth quarter of FY26 as against a loss of ₹51.3 Cr in the year-ago quarter. Sequentially, profit declined 55% from ₹68.9 Cr. 

The company posted a 48% YoY jump in operating revenue to ₹681.5 Cr in Q4 FY26. 

For the full fiscal year FY26, BlueStone’s operating revenue grew 38% YoY to ₹2,441.2 Cr. It reported a profit of ₹26 Cr as against a loss of ₹219.2 Cr in FY25. 

Shares of the company were volatile today, ending 0.15% lower at ₹547.15 on the BSE. The stock rose 8.74% to an intraday high of ₹595.85 and fell 4.08% to a low of ₹525.60.

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