Synopsis

PC Jeweller shares are likely to remain in focus after the company reported a 21% rise in Q1 FY27 revenue and said it expects to become debt-free this quarter. The jeweller reduced its bank debt by 24% during the quarter and by over 90% since September 2024. Strong Q4 earnings and plans to expand via franchise showrooms further boosted sentiment

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Shares of PC Jeweller surged as much as 5% to Rs 10.40 on the BSE on Friday after the company reported its business update for the first quarter of FY27, highlighting revenue growth and further progress in reducing its debt.

The company said it delivered a strong operational performance in Q1 FY27, with consolidated revenue growing approximately 21% year-on-year (YoY). PC Jeweller added that it continues to make rapid progress towards its goal of becoming debt-free and expects to achieve that milestone during the current quarter.

In line with this objective, the company said it reduced its outstanding debt to banks under the terms of the Joint Settlement Agreement by approximately 24% during Q1 FY27. With this reduction, the company added that it has cut its outstanding debt by more than 90% since executing the settlement agreement with banks on September 30, 2024.

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According to the company, repaying its remaining debt and attaining debt-free status during the current quarter will significantly strengthen its financial position in the periods ahead.

The company reported a 58% increase in Q4 net profit to Rs 150 crore, up from Rs 95 crore in the year-ago period.

PC Jeweller delivered a strong operational performance during the quarter, supported by sustained consumer demand and steady sales momentum. Standalone revenue for Q4 FY26 rose 33% YoY to Rs 927 crore from Rs 699 crore in the corresponding quarter last year. For the full year FY26, the company posted revenue of Rs 3,353 crore, a 49% increase from Rs 2,243 crore in FY25.

EBITDA for the March quarter stood at Rs 180 crore, up 25% from Rs 144 crore in Q4 FY25, driven by operating leverage and improved cost efficiencies. On a full-year basis, EBITDA rose 67% to Rs 861 crore in FY26 from Rs 517 crore in the previous financial year.

In the previous quarter, the company received enquiries and feedback from prospective business partners regarding the establishment of large-format franchise showrooms. The company believes this expansion strategy could help it gain market share from the unorganised sector without requiring additional capital investment.

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PC Jeweller added that discussions with several prospective partners are at an advanced stage and align with its broader plan to open up to 100 large franchise showrooms over the next 12 to 18 months.

PC Jeweller shares are up 6% year-to-date.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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