PC Jeweller Ltd made considerable progress to lower its debt, reducing the same by 56% to around ₹1,800 crore during the year 2025. The firm's Managing Director, Balram Garg, revealed intentions of clearing all unpaid loans by the end of March 2026, fueled by better sales and successful capital fundraising.
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Debt Reduction: PC Jeweller has lowered its bank loans from close to ₹4,100 crore as of March 31, 2024, to approximately ₹1,800 crore in the current fiscal year.
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Future Targets: The company projects that its bank loans will reduce even further to ₹1,775 crore at the end of the current fiscal year and intends to be entirely debt-free by March 2026.
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Fundraising Strategy: PC Jeweller will raise more than ₹1,500 crore during the coming fiscal year from a preferential issue of warrants, which will be used to repay outstanding bank loans.
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Settlement Agreement: In September 2024, PC Jeweller signed a settlement agreement with a group of 14 banks headed by the State Bank of India (SBI) to settle its outstanding loans.
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Sales Growth: PC Jeweller recorded strong growth in sales over the initial nine months of this fiscal year, enabling it to decrease debt. Revenue was at ₹556.91 crore a year ago while at present time stands at ₹1,545.58 crore.
The business move not only positions PC Jeweller in good financial position but also demonstrates the wider recovery after difficult times posed by the COVID-19 pandemic.
Sources: Business Standard, India Times