PC Jeweller shares climbed over 6% after the company confirmed it is set to become debt-free this quarter. Having cleared dues with two major consortium banks, the firm has now cut its total debt by over 90% since September 2024, aiming to improve its balance sheet stability.
PC Jeweller shares traded higher on Wednesday, rising by 6.48% to reach an intraday high of Rs 10.02 on the National Stock Exchange. The move follows a significant update from the company regarding its ongoing efforts to reduce financial liabilities. In an official exchange filing, the jewelry retailer announced that it has successfully settled all outstanding dues with two consortium banks, completing the obligations under a settlement agreement signed on September 30, 2024.
This repayment milestone is part of a larger strategy to clean up the company’s balance sheet. According to the firm, total outstanding debt has been reduced by more than 90% since the settlement process began in late 2024. Earlier this year, in the June quarter, the company had already paid down a portion of its bank liabilities, reducing the remaining debt by 24% before this latest settlement.
For investors, this debt reduction is being evaluated alongside the company's recent operational performance. PC Jeweller reported a 21% year-on-year growth in consolidated revenue for the first quarter of the 2026-27 fiscal year. The company’s annual financials for 2025-26 also showed improvement, with net profit rising to Rs 714.46 crore from Rs 577.70 crore in the previous year. Total income for the same period increased to Rs 3,549.58 crore compared to Rs 2,371.87 crore previously.
While the reduction in debt is a positive step toward lowering interest costs and improving cash flow, the company’s ability to sustain this growth in a competitive retail jewelry market remains a key focus. The firm, which operates a network of approximately 50 stores, has spent the last several quarters managing complex settlement agreements. Historically, such high-leverage situations have put pressure on the company’s financial flexibility and profitability.
Moving forward, investors may track whether the removal of debt pressure helps the company improve its profit margins and scale its retail operations more effectively. The key update to watch in the coming quarters will be the company’s ability to maintain revenue momentum without the burden of past debt obligations and whether this allows for new investments in store expansion or inventory.