PC Jeweller Nears Debt-Free Status As Shares Correct After Rally

PC Jeweller shares fell 5.5% in the early trade on Tuesday, 8 September, after three straight sessions of strong buying. The stock had gained around 37% over the previous three sessions, marking a sharp turnaround in investor interest. The decline came as some investors appeared to lock in profits after the recent rally.

The PC Jeweller share price opened at ₹14.16 on Tuesday and slipped to a low of ₹13.17 during the session. At 11:59 AM, it was down 1.87% at ₹13.67. Even after the fall, the stock remains up more than 38% over the past month, while its gains stand at 53% over three months and 50% over six months. Over one year, however, the PC Jeweller stock is still down around 0.4%.

What Has Driven PC Jeweller Shares Higher?

A major factor behind the recent buying has been PC Jeweller's progress towards becoming debt-free. On 3 September, the company informed stock exchanges that it had repaid all outstanding debt covered under its settlement agreement with another member of the consortium.

With this repayment, PC Jeweller has now cleared its outstanding debt with nine of the 14 consortium banks. The company also said more than 96% of the debt owed to the remaining five banks had already been discharged.

PC Jeweller expects to clear the remaining less than 4% of its outstanding debt this month. If completed as planned, the move would significantly improve its balance sheet and reduce financial pressure.

The stock has also seen a sharp move within its 52-week range. It touched a low of ₹7.45 on 30 March this year after climbing to ₹15.38 on 17 September last year.

PC Jeweller Q1FY27 Results

The company's Q1FY27 performance has added to the positive sentiment. Consolidated revenue increased about 21% year-on-year to ₹877 crore, while gross profit jumped 81% to ₹260 crore.

PC Jeweller is also looking to raise up to ₹1,000 crore through a qualified institutional placement. The board approved the proposal in July, with the funds expected to support growth, improve financial flexibility and help the company expand its operations.

Tuesday's fall, therefore, comes after a particularly strong run rather than a broader deterioration in the company's recent operating performance.

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