PC Jeweller shares fell to Rs 13.18 apiece on Tuesday morning, marking a 5% decline after a sharp rally in recent days. Despite the dip, the stock has gained 31% in the past week and 45% so far in 2026, delivering stellar returns of 388% over three years and 424% over five years.
The decline follows a recent announcement by PC Jeweller that it is on track to become debt-free by the end of this month, having repaid outstanding debts to nine of the fourteen consortium banks ahead of schedule.
The company has cleared more than 96% of the outstanding debt owed to the remaining five banks and aims to settle the balance by month-end, which will significantly strengthen its balance sheet.
In a regulatory filing, PC Jeweller stated that the settlement agreement signed in September 2024 was a one-time settlement with a 14-bank consortium led by State Bank of India to resolve a stressed loan book of nearly Rs 4,100 crore as of March 2024.
The company's Q1 FY27 results showed a consolidated net profit of Rs 222 crore, a 37% increase year-on-year, with revenue rising 21% to Rs 877 crore. Operating PAT surged 168% to Rs 213 crore, excluding other income, highlighting a substantial improvement in core business performance.
Background
PC Jeweller's strategic debt reduction has been a focal point for investors, especially given the company's historical financial challenges. The successful execution of its debt repayment plan could enhance its market reputation and investor confidence.
As the company nears its debt-free milestone, investors will be keen to see how this financial restructuring influences its market position and growth trajectory.
