BlueStone bets on high-street stores as mall growth stalls

BlueStone is planning to more than double its store network to 705 outlets by fiscal 2030, and it expects most of the new locations to open on high streets rather than inside malls. The jewellery chain, backed by Prosus, is betting that India’s affluent and aspirational shoppers will keep buying outside the mall format even as enclosed retail space remains tight.

BlueStone is already present in about 90% of India’s quality malls, leaving little room for further mall-led expansion. BlueStone’s chief executive said saturation means the next leg of growth has to come from other retail locations. India had just 61.5 million square feet of Grade A mall stock in 2024, far below the more than 400 million square feet in China and more than 700 million in the United States. Nearly 20 premium malls totaling 12.3 million square feet were expected to become operational by the end of 2026 across eight cities, but the pipeline still leaves major retailers looking beyond enclosed malls.

As of March 2026, BlueStone had 340 stores across 134 cities in 28 states and Union territories, with annual revenue above 2,440 crore. Revenue from operations rose from 12,658 million in FY24 to 17,700 million in FY25 and 24,412 million in FY26. Same-store sales growth reached about 34% in the quarter ended March 2026, and stores typically reach operational break-even in three to four months.

Standalone revenue grew about 40% year-on-year in FY25 despite a record rise in gold prices during the year. The company’s net loss widened to 222 crore in FY25 from 142 crore in FY24.

Tata Group’s Tanishq has also been seeking space outside malls as supply tightens in major urban markets such as Mumbai, Delhi-NCR, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad and Jaipur. Jewellery shopping now begins online and is confirmed in store.

In August 2024, Prosus and other investors backed a 900-crore funding round that valued BlueStone at about 8,100 crore. Prosus valued BlueStone at roughly $950 million ahead of its public listing plans.