PC Jeweller shares surge 34% in three sessions; here is why

Shares of the Delhi-based jewellery retailer, PC Jeweller, rose for a third straight session on Monday, September 7. The stock has surged a whopping 34% in three sessions to an intraday high of ₹13.66 on the BSE. The stock came under buying interest after the company last Thursday said that it took a step further to achieving a debt-free status.

In intraday deals, PC Jeweller shares rose nearly 15% on the National Stock Exchange (NSE) and BSE.

PC Jeweller last week said that it completed cleared and repaid all its outstanding debt under the terms of settlement agreement dated 30 September 2024 with respect to one more bank.

"With this successful clearance of debt, the Company has now repaid all the outstanding debt of 9 out of the 14 consortium banks with all repayments completed ahead of scheduled due dates," PC Jeweller said in a regulatory filing.

PC Jeweller added that it discharged more than 96% of the outstanding debt of the remaining five banks as well.

"The company remains firmly on track to discharge the remaining less than 4% of the outstanding debt of the remaining five banks and achieve a debt-free status in the current month itself, which will materially strengthen its balance sheet and financial position," the Delhi-based jeweller added.

PC Jeweller has been consistently reducing its debt burden and wants to be debt free by end of this quarter.

As part of the debt reduction plan, PC Jeweller last month said that it cleared outstanding debt of 8 out of the 14 consortium banks ahead of the scheduled due dates.

PC Jeweller Q1 earnings

PC Jeweller had reported a 37% increase in its consolidated net profit to ₹222 crore for the quarter ended June on better revenue and said the company will become debt-free in the current quarter. Its net profit stood at ₹161.93 crore in the year-ago period.

Its total income rose to ₹879.27 crore in Q1 FY27 from ₹807.88 crore in the corresponding period of the preceding year.

The jewellery retailer’s operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 90% to ₹242 crore in the reporting quarter from ₹127 crore in the same quarter of the previous fiscal year.