PC Jeweller Shares Shine After Debt Cut and Revival Hopes

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With 80% YoY revenue growth and aggressive debt reduction, experts see PC Jeweller on strong path to recovery and expansion

By S JHA

MUMBAI, July 4, 2025 – Shares of PC Jeweller Ltd. surged by 17% intraday on the NSE, reaching ₹16.38 on Thursday, after the Delhi-based jewellery retailer reported a sharp 80% year-on-year revenue growth for the first quarter of FY26 (April–June 2025). The stellar update has reinforced investor confidence in the company’s ongoing turnaround story, which has already seen the stock rally over 1100% in the past five years.

The company attributed its strong Q1 performance to robust demand for wedding and festive jewellery, resilient consumer sentiment, and streamlined operations, despite headwinds from volatile gold prices.

In its regulatory filing, PC Jeweller said it had also cut its debt by 7.5% in Q1 FY26, building on a massive 50% debt reduction achieved in FY25. “We closed the quarter on a very strong note. The company is optimistic about delivering exceptional performance in the upcoming quarters,” said Vishan Deo, Executive Director (Finance) and CFO.

The company has laid out an ambitious goal of becoming completely debt-free by FY26, signaling financial discipline and operational efficiency. Its improved balance sheet and cash flows are being seen as a foundation for sustainable growth.

Strategic Collections and Retail Push

Industry analysts highlighted PC Jeweller’s targeted focus on new collections like Dashavatar and Folia Amoris, helping the company cater to the growing demand for branded and theme-based jewellery. The retailer has also leveraged digital platforms and omnichannel strategies to increase visibility and reach new customers.

Despite a 26.6% quarterly decline in net profit over the last three quarters (from ₹178.88 crore to ₹94.78 crore), PC Jeweller’s revenue trajectory has been strongly positive, rising from ₹43.48 crore to ₹700.1 crore over six quarters — a more than 1,500% increase, reflecting turnaround momentum.

The company currently operates 52 showrooms, including 49 company-owned outlets, and has a market capitalization of ₹9,181.98 crore. Its recent 1:10 stock split has also increased retail participation.

From Setback to Comeback

Once reeling from operational and governance challenges that led to store closures and stock underperformance, PC Jeweller has spent the past five years rebuilding its brand, retail footprint, and financials. Market experts view it as a textbook turnaround, underpinned by strategic expansion, cost control, and demand tailwinds in India’s fast-growing jewellery market.

A report by IndMoney noted that the company is well-positioned to capitalize on structural growth drivers like increasing disposable incomes, government support through hallmarking regulations, and evolving consumer preferences for branded jewellery.

Social media investors have also joined the optimism. A popular handle, @SumitResearch, posted: “Stock up 15% in three sessions… Revenue up 80%, debt down 50%, and plans to go debt-free. Clear momentum!”

With tailwinds in both the market and balance sheet, PC Jeweller appears to have firmly entered a new growth phase — one that investors are clearly willing to bet on.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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