Rapid Debt Reduction
PC Jeweller clears over 98 percent of bank debt amid strong profit growth
Anonymous
PC Jeweller has repaid all outstanding dues to 12 of its 14 consortium banks under a September 2024 settlement agreement, clearing more than 98% of its total bank debt. The repayments were completed ahead of schedule, with less than 2% remaining and the company targeting full debt-free status by the end of September 2026. The deleveraging effort coincides with an operational recovery: Q1 FY27 consolidated net profit rose 37.2% year over year to ₹222 crore, while revenue increased 21% to ₹877 crore. Shares rose about 6.1% after the announcement as investors responded positively to the company’s progress toward strengthening its balance sheet.
Key Points
1
PC Jeweller’s debt reduction accelerated sharply: it had cleared only 4 of the 14 consortium banks as of July 15, 2026, compared with 12 banks by September 22, 2026.
2
The company’s total debt reduction had risen from more than 90% reported on July 2, 2026, to more than 98% by September 22, 2026.
3
PC Jeweller’s debt repayments were supported by capital restructuring, including the allotment of 7,407,500 shares following the conversion of warrants announced on September 22, 2026.
4
Only two consortium banks remained unpaid, with their dues representing less than 2% of total outstanding bank debt; the company said settling them would materially strengthen its balance sheet and financial position.
5
The company’s Q1 FY27 profit turnaround was notable because it reported net profit of ₹222 crore versus a net loss of ₹153 crore in Q1 FY26, according to the cited market update.
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