BlueStone Jewellery Shares Drop 13% After Q2 Loss Reported

Shares of BlueStone Jewellery and Lifestyle experienced a significant decline on Friday following the release of its second quarter financial results. The company reported a consolidated net loss for Q2 FY27, reversing the profit recorded in the previous quarter. This development caused the stock to tumble nearly 13 percent during intraday trading.

On the Bombay Stock Exchange (BSE), BlueStone’s shares declined sharply, hitting a low of ₹663 compared to the previous close of ₹760.45, marking a 12.81 percent drop at one point. By mid-afternoon, the stock had somewhat recovered but remained down 7.79 percent, trading at ₹701.20. Trading volumes were notable, with approximately two million shares exchanging hands across the BSE and the National Stock Exchange (NSE).

Despite the recent volatility, the stock has delivered impressive gains over the longer term. Year-to-date, BlueStone’s shares have surged approximately 47 percent, with a 27 percent increase over the past six months. However, the stock’s performance over the last year has been largely flat, with a slight decline of around 2 percent.

Financial market analyst Harish Jujarey, Associate Vice President and head of technical equity research at Prithvi Finmart, provided insight into the stock’s movement. He noted that after reaching an all-time high of ₹970, BlueStone’s share price corrected sharply and is now trading near the ₹700 level. This price point is seen as critical support, aligning with a previous swing high and the stock’s 200-day moving average.

Jujarey pointed out that the Relative Strength Index (RSI) is near 34, indicating continued weakness in the stock’s momentum, which could lead to further downward pressure. Nevertheless, he observed that trading volumes remain relatively low during this decline, suggesting that selling pressure is not yet overwhelming. He warned that the short-term trend remains negative and predicted the stock could fall further towards the next support level near ₹600.

Turning to the company’s quarterly financials, BlueStone reported a consolidated net loss of ₹4.4 crore for Q2 FY27. This is a reversal from the ₹5.9 crore profit the company posted in Q1 of the current fiscal year. On a year-on-year basis, however, the loss narrowed significantly compared to a ₹52 crore loss in the same quarter of the previous fiscal year.

Revenue from operations remained steady at ₹745.03 crore in Q2, nearly flat against ₹736.84 crore in Q1 FY27 and up 45 percent compared to ₹513.6 crore recorded in Q2 of FY26. Earnings before interest, tax, depreciation, and amortization (EBITDA) more than doubled year-over-year, reaching ₹93.5 crore compared to ₹41.7 crore in the corresponding quarter last year. Still, this represented a decrease from ₹106.8 crore earned in the quarter ended June 2026.

The company’s margin performance showed some weakness, dropping to 12.5 percent from 14.5 percent year-on-year. This margin contraction contributed to the overall negative net income for the quarter.

In a strategic move to bolster its financial position, BlueStone’s Board of Directors approved plans to raise up to ₹300 crore. The funds will be raised through the issuance of non-convertible debentures via a private placement, potentially in multiple tranches.

BlueStone Jewellery operates in the competitive Indian jewellery market, which has witnessed steady growth driven by rising consumer demand and evolving buying preferences, including increasing online sales. The company’s mixed financial results reflect both the challenges and opportunities within this sector.

Investors and market watchers will closely monitor BlueStone’s next steps and upcoming quarterly updates to assess how the company manages its margins and navigates market conditions. The announced fundraising effort could provide additional resources to support growth initiatives or address operational pressures.

Disclaimer: The views expressed by analysts and brokerage firms cited in this report are their own and do not necessarily represent those of Business Standard. Readers should exercise their own judgment when making investment decisions.