PC Jeweller Ltd. has made remarkable progress in reducing its debt burden. The company announced that it successfully reduced its bank loans by 56% during the financial year 2024-25 (FY25), bringing the total outstanding debt to approximately ₹1,800 crore. The jeweller is ambitiously targeting achieving a debt-free status by the end of the next fiscal year, March 2026.
Managing Director Balram Garg states that debt reduction is primarily attributed to strong sales recovery and strategic financial planning. PC Jeweller’s move to restructure its business, such as shutting down loss-making showrooms, has been a significant factor in this financial turnaround. In addition, the company will raise more than ₹1,500 crore through a preferential issue of warrants in the next fiscal year, which will be utilised to repay outstanding loans.
Let’s compare the revenue and net profit/loss of PC Jeweller for the April-December period of FY24 and FY25:
| Financial Year (April-Dec) | Revenue (₹ crore) | Net Profit/Loss (₹ crore) |
|---|---|---|
| FY24 | 556.91 | -507.72 |
| FY25 | 1545.58 | 482.92 |
Garg acknowledged that the COVID-19 pandemic had severely impacted sales, but expressed optimism as business activity gradually normalizes. He highlighted that lower interest costs and improved operational efficiency have been instrumental in achieving positive financial outcomes.
The company had earlier successfully launched a preferential issue of fully convertible warrants of ₹2,702.11 crore in October, which further strengthened its financial health.
Market experts view PC Jeweller’s debt reduction as a positive signal for investors, indicating the company’s commitment to stabilizing its financial health while capitalizing on the renewed demand in the jewelry sector.
As PC Jeweller continues its journey towards becoming debt-free, stakeholders remain cautiously optimistic about the company’s ability to sustain profitability while navigating market challenges.
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