PC Jeweller Q2 Update: Revenue Soars 63%, Debt Reduction On Track
PC Jeweller Ltd has announced its Q2 update, showcasing a remarkable 63% year-on-year growth in revenue during the second quarter of this fiscal year. The Delhi-based company, which operates 52 showrooms across the country, has also made significant strides in reducing its debt by 23% during the September quarter.
Strong Demand for Gold Jewellery Drives Revenue Growth
The company’s robust performance can be attributed to the strong demand for gold jewellery during the festive season. In a regulatory filing, PC Jeweller shared its operational update for the July-September quarter of the 2025-26 fiscal, highlighting a standalone revenue growth of approximately 63% compared to the corresponding quarter of the previous financial year.
Debt Reduction: A Key Focus Area for PC Jeweller
PC Jeweller has been actively working towards reducing its debt, and the latest quarter has seen a significant decrease of 23% in outstanding debt payable to banks. This reduction is in addition to the 9% decrease during the first quarter of this fiscal and a more than 50% cut in the previous financial year.
The company’s goal is to become debt-free by the end of 2025-26, and it has taken concrete steps to achieve this objective. At the end of the 2024-25 fiscal year, PC Jeweller had a net debt of Rs 1,780 crore. To further reduce its bank loans, the company’s board approved a proposal to raise Rs 500 crore equity from promoters and Capital Ventures Pvt Ltd in July.
Funds from Promoters and Investors to Aid Debt Reduction
PC Jeweller will also receive Rs 1,300 crore from promoters and investors on the conversion of warrants into equity shares. These funds, totaling Rs 1,800 crore, will enable the company to clear all its outstanding debt. The debt reduction is being done as per the company’s settlement with its bankers.
Expansion of Retail Presence
During the quarter, PC Jeweller expanded its retail presence by opening a franchise-owned showroom in Pitampura, Delhi. The company has adopted a strategy of balanced growth through a mix of company-owned and franchise showrooms.
Confident About Future Performance
PC Jeweller is confident about building on its strong performance in the upcoming quarters and is focused on reclaiming its leading market position, which it has held in the past. The company’s share price closed at Rs 12.66 apiece on Wednesday on the BSE platform, with a market capitalization of Rs 8,324.43 crore and a PE ratio of around 15.
For investors and traders, PC Jeweller’s Q2 update presents a positive outlook, with the company’s debt reduction and revenue growth signaling a potential turnaround in its fortunes. As the Indian economy continues to grow, the demand for gold jewellery is likely to remain strong, driving the company’s performance in the coming quarters.
Indian investors and traders can expect PC Jeweller’s stock to be in focus in the coming days, with the company’s Q2 results and debt reduction plans being closely watched by market participants. With the festive season in full swing, the demand for gold jewellery is likely to remain strong, driving the company’s revenue growth and aiding its debt reduction efforts.
Key Takeaways from PC Jeweller’s Q2 Update
- 63% year-on-year growth in revenue during Q2
- 23% decrease in debt payable to banks during the September quarter
- Funds from promoters and investors to aid debt reduction
- Expansion of retail presence through franchise-owned showrooms
- Confident about future performance and reclaiming leading market position
As the Indian stock market continues to evolve, it is essential for investors and traders to stay informed about the latest developments and trends. PC Jeweller’s Q2 update is a significant event in the Indian markets, and its implications will be closely watched by market participants in the coming days.
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In conclusion, PC Jeweller’s Q2 update presents a positive outlook for the company, with its debt reduction and revenue growth signaling a potential turnaround in its fortunes. As the Indian economy continues to grow, the demand for gold jewellery is likely to remain strong, driving the company’s performance in the coming quarters.
