PC Jeweller shares extend rally as company nears debt-free status
PC Jeweller shares rose 4% to Rs 14.08 on Wednesday, up 38% over the past week, as the jeweller moves close to clearing all its debt and posts strong first-quarter earnings.
Share price rally
Shares of Indian jewellery company PC Jeweller climbed 4% to Rs 14.08 in Wednesday morning trade, according to The Economic Times. The gain followed profit booking on Tuesday that had snapped a three-day winning streak. Over the past week the stock has surged 38%, and it is up more than 40% over the past month, bringing its 2026 year-to-date gain to 50%. Over longer horizons, the stock has delivered returns of nearly 400% over three years and 430% over five years.
Nearing debt-free status
The rally was driven by the company's statement that it is on track to become debt-free by the end of this month. In an exchange filing on Tuesday, PC Jeweller said it has repaid outstanding dues to 10 of its 14 consortium banks, with every repayment completed ahead of schedule. For the remaining four banks, the company has cleared more than 96% of the outstanding debt and expects to settle the remaining balance of less than 4% by month-end.
The underlying one-time settlement agreement with the 14-bank consortium, led by State Bank of India (SBI), was signed in September 2024. It aimed to resolve a stressed loan book that stood at nearly Rs 4,100 crore as of March 2024. The consortium also includes Union Bank, Punjab National Bank, Axis Bank, IndusInd Bank, Bank of India, IDBI Bank, Karur Vysya Bank, Kotak Mahindra Bank, Indian Overseas Bank, Canara Bank, Indian Bank, Bank of Baroda and IDFC First Bank.
Strong quarterly results
In August, PC Jeweller reported a consolidated net profit of Rs 222 crore for the first quarter of FY27, a 37% year-on-year increase from Rs 153 crore a year earlier. Revenue from operations rose 21% year-on-year to Rs 877 crore from Rs 725 crore. Operating profit after tax, excluding other income, jumped 168% to Rs 213 crore from Rs 79 crore. The company said the debt repayment progress and earnings growth would materially strengthen its balance sheet and overall financial position.
