PC Jewellers share price rallied over 3% in early trade on Monday after the company announced that it has become debt-free, having cleared outstanding dues of all 14 consortium banks. The jewellery stock gained as much as 3.61% to Rs 14.63 apiece on the BSE.
PC Jeweller shares have surged 26% in one month and have jumped nearly 73% over the past six months. The stock has delivered multibagger returns of 425% in three years.
The company on Friday announced that it has successfully discharged the remaining outstanding debt of the banks and has achieved its financial objective of a Debt-Free status.
“With the repayment, the company has successfully discharged all the outstanding debt of all the 14 consortium banks under the terms of Settlement Agreement dated 30 September 2024 with all repayments completed ahead of scheduled due dates,” PC Jewellers said in a regulatory filing on September 25.
The accomplishment of a debt-free status will materially strengthen the company's balance sheet and financial position, it added.
PC Jewellers' Debt Journey
In 2022, the company's total debt to 14 banks stood at around Rs 3,278 crore, with State Bank of India (SBI), Union Bank of India, Punjab National Bank (PNB) and Indian Bank among its largest lenders.
PC Jewellers had disclosed a loan default worth Rs 3,466 crore in 2023 and the banks subsequently recalled the loans.
SBI, the state-run largest lender had moved NCLT in June 2023 against PC Jeweller over outstanding dues.
However, in March 2024, SBI accepted PC Jeweller's one-time settlement (OTS) proposal, which included cash and equity components. Later in September 2024, the company had entered OTS with the consortium of 14 banks, which involved cash, equity and release of securities or mortgaged properties.
Coming to September 2026, the company has cleared the debts of all 14 banks, eventually becoming debt-free.
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PC Jewellers - Financials
PC Jeweller has had a volatile financial journey over the years. Its sales peaked at around Rs 9,610 crore in FY18, before declining to approximately Rs 8,672 crore in FY19, when profitability was almost wiped out.
The company continued to face losses in the following years, with net loss of Rs 391 crore in FY22 and Rs 203 crore in FY23. Losses widened sharply in FY24, with net loss at Rs 629 crore.
However, the jeweller staged a turnaround in FY25, reporting a positive PAT of Rs 578 crore, which further increased to Rs 714 crore in FY26.
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