PC Jeweller Nears Debt-Free Status as Shares Extend Gains

PC Jeweller attracted strong buying interest on Friday after updating investors on its debt repayment progress. By afternoon, the stock was trading at ₹11.71, up 11.3% for the day. The move lifted the company’s market capitalisation to around ₹11,250 crore. A day earlier, the stock had already gained 3.3%.  

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The company said it had settled dues with another lender covered under its September 2024 agreement with a consortium of banks. With this payment, debt owed to nine of the 14 lenders in the consortium has been cleared. PC Jeweller added that all of these repayments were completed before the original due dates.  

Work on the remaining borrowings is also nearing completion. More than 96% of the outstanding amount owed to the five remaining banks has already been repaid. The balance is now less than 4% of the total outstanding debt, and the company expects to clear it during September. Once that happens, it intends to become debt-free.  

The debt reduction initiative is predicated on a September 30, 2024, one-time settlement agreement. It was carried out by the State Bank of India in collaboration with a group of 14 banks to deal with the loans that, as of March 2024, had defaulted on and were valued at around ₹4,100 crore. 
 
Union Bank of India, Punjab National Bank, Axis Bank, IndusInd Bank, Bank of India, IDBI Bank, Karur Vysya Bank, Kotak Mahindra Bank, Indian Overseas Bank, Canara Bank, Indian Bank, Bank of Baroda, and IDFC First Bank are among the lending institutions listed in addition to State Bank of India. 

Although PC Jeweller's gains were far more than those of the major indices, the whole market was up during the session. The Sensex increased 533 points, or 0.70%, to 76,685.98 at 2:08 pm. At 23,943.35, the Nifty 50 was up 70 points, or 0.29%.  
 

So far in 2026, PC Jeweller's stock has increased by almost 25%. In contrast, the Nifty 50 has dropped 8.4% throughout that time.