PC Jeweller shares jump 6% as company clears debt of 9 banks; here's what it says

PC Jeweller Ltd shares jumped nearly 6 per cent in Thursday's trade after the jewellery retailer said it had successfully cleared and repaid all its outstanding debt with nine out of 14 consortium banks, as part of its efforts to become debt-free this month.

The PC Jeweller stock opened at Rs 10.21 over its previous close of Rs 10.18 on the BSE. It hit a high of Rs 10.75 apiece, up 5.60 per cent from the previous close. The day's low stood at Rs 10.18.

In a filing to the stock exchanges on Thursday, PC Jeweller said the repayments were made under the terms of the Settlement Agreement dated September 30, 2024. With the latest repayment, the company has now repaid all outstanding debt owed to 9 of the 14 consortium banks, with all such repayments completed ahead of their scheduled due dates.

The company added that it has also discharged more than 96 per cent of the outstanding debt owed to the remaining five banks. It said it remains firmly on track to discharge the remaining debt and achieve a debt-free status in the current month.

According to PC Jeweller, becoming debt-free will materially strengthen its balance sheet and financial position.

PC Jeweller, which began operations with its first showroom in Karol Bagh, New Delhi, in 2005, is a jewellery retail chain with showrooms across 42 cities and 14 states. The company operates large-format standalone showrooms and offers jewellery across price points, with an increasing focus on diamond jewellery.

PC Jeweller had reported a strong Q1FY27 performance, with consolidated sales rising 21 per cent year-on-year to Rs 877 crore from Rs 725 crore in Q1FY26. Gross profit jumped 81 per cent to Rs 260 crore, while operating Ebitda surged 90 per cent to Rs 242 crore. Operating PBT increased 176 per cent to Rs 223 crore. Consolidated operating PAT, excluding other income, rose 168 per cent to Rs 213 crore from Rs 79 crore in the year-ago quarter.