PC Jeweller Soars as Debt-Free Status Nears Amid Aggressive Repayments

PC Jeweller Soars as Debt-Free Status Nears Amid Aggressive Repayments​

PC Jeweller shares surged by over 6% on Wednesday, fueled by the company's crucial announcement that it is on track to achieve debt-free status during the current quarter. This significant milestone comes after the company confirmed the repayment of outstanding dues to two consortium banks.

The stock saw a strong intraday performance, reaching an all-time high of ₹10.02 apiece on the NSE, though it later traded at ₹9.95, still up 5.74%. This rapid ascent reflects market confidence in the company's swift financial turnaround story.

Milestone Achieved: Clearing Obligations to Consortium Banks​

In a detailed exchange filing, PC Jeweller disclosed that it has fully cleared and repaid all outstanding debt obligations related to two of the fourteen consortium banks. These repayments adhere strictly to the terms set forth in the Settlement Agreement dated September 30, 2024.

The company emphasized the magnitude of its financial improvements. "Debt reduced by more than 90 per cent; Debt-Free status to be achieved in the current quarter itself," the business update stated, underscoring the rapid pace of change within the organization.

Rapid Financial Recovery and Revenue Growth​

Beyond debt reduction, PC Jeweller reported robust operating performance for the April-June quarter. The company recorded a consolidated revenue growth of approximately 21 per cent for that period.

The management reiterated its firm expectation to reach complete debt-free status during the ongoing July-September quarter. This ambitious goal is supported by continuous efforts to shore up the balance sheet and improve future financial stability.

Debt Reduction Deepens as Company Strengthens Position​

PC Jeweller further detailed that it reduced its outstanding debt payable to banks under the Joint Settlement Agreement by an additional 24 per cent during the June quarter alone.

The company confirmed that these actions have collectively led to a reduction in outstanding debt by over 90 per cent since the execution of the initial Settlement Agreement on September 30, 2024. The successful repayment of remaining dues is expected to substantially enhance the company's financial position moving forward.

Improved Profitability and Operating Footprint​

The turnaround story extends beyond debt reduction, with the company showing impressive growth in profitability for FY25-26. Net profit rose to ₹714.46 crore from ₹577.70 crore in the preceding fiscal year.

Similarly, total income saw a marked increase, rising to ₹3,549.58 crore compared to ₹2,371.87 crore in the previous period. PC Jeweller currently operates approximately 50 retail stores across major Indian cities.