PC Jeweller Ltd shares saw a significant jump of nearly 9% in early trading on Thursday, following the announcement of robust second-quarter financial results. The jewellery manufacturer reported a 58% year-on-year increase in consolidated net profit, reaching Rs 330.66 crore for the September quarter.
Strong Financial Performance Fuels Growth
The company's operational revenue also climbed, rising 28% year-on-year to Rs 1,054.47 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) demonstrated an even stronger performance, surging 74.4% to Rs 310.45 crore, with margins improving to 29.4% during the quarter. This strong financial showing contributed to the stock's rise to a session high of Rs 20.17 apiece.
Achieving Debt-Free Status
A key highlight of the quarter was PC Jeweller achieving a completely debt-free status. The company successfully repaid all outstanding dues to its 14 consortium banks ahead of schedule. This strategic move means PC Jeweller now has zero bank borrowings, with all associated charges, securities, guarantees, and undertakings released. This reduction in debt is anticipated to significantly lower interest costs starting from the second half of the fiscal year 2027, thereby supporting future profitability.
"We are thrilled to announce our debt-free status, a pivotal moment that strengthens our financial foundation and positions us for sustainable growth. The strong Q2 performance reflects our operational efficiency and market resilience."
Recovery of Receivables and Expansion Plans
Beyond its core financial performance, PC Jeweller also made substantial progress in recovering long-pending export receivables. The company received remittances of approximately Rs 142 crore during the quarter after successful negotiations with export debtors, signaling a resolution to previously outstanding issues.
Looking ahead, PC Jeweller has ambitious expansion plans. The company aims to open up to 100 large-format showrooms across Tier I, Tier II, and Tier III cities within the next 12-18 months. This expansion will utilize a hybrid model, combining company-owned outlets with an asset-light franchise approach.
New Brands and Backward Integration
In a bid to capture a younger demographic, PC Jeweller is developing a new jewellery brand focused on lightweight, demi-fine, and lab-grown diamond jewellery. Additionally, its step-down subsidiary, PCJ Mining SARL, has commenced on-site development work for gold mining activities in Chad, marking a strategic move towards backward integration in gold sourcing.