PC Jeweller Ltd. saw its shares climb almost 6% on Thursday following the company's announcement that it had successfully repaid all outstanding debt to nine of its 14 consortium banks. This significant step is part of the jewellery retailer's broader initiative to become entirely debt-free within the current month.
According to a filing made to the stock exchanges, these repayments were executed under the terms of a Settlement Agreement dated September 30, 2024. Notably, all these repayments were completed ahead of their scheduled due dates, underscoring the company's strong financial management.
Progress Towards Debt-Free Status
Beyond the nine banks, PC Jeweller has also discharged over 96% of the outstanding debt owed to the remaining five consortium banks. The company reiterated its firm commitment to settling the remaining debt and achieving a debt-free status within the ongoing month, a move expected to materially strengthen its balance sheet and overall financial position.
PC Jeweller, which commenced operations in 2005 with its inaugural showroom in Karol Bagh, New Delhi, has since expanded into a prominent jewellery retail chain. It now boasts showrooms across 42 cities and 14 states in India, offering a diverse range of jewellery across various price points, with an increasing emphasis on diamond jewellery.
Strong Quarterly Performance
The announcement comes on the heels of a robust financial performance for the first quarter of fiscal year 2027 (Q1FY27). The company reported a 21% year-on-year increase in consolidated sales, reaching Rs 877 crore from Rs 725 crore in Q1FY26. Gross profit surged by 81% to Rs 260 crore, while operating EBITDA saw a substantial 90% rise to Rs 242 crore.
Operating Profit Before Tax (PBT) also experienced a significant jump of 176% to Rs 223 crore. Consolidated operating Profit After Tax (PAT), excluding other income, demonstrated impressive growth, increasing by 168% to Rs 213 crore compared to Rs 79 crore in the corresponding quarter of the previous year.