Penny stock: Jewellery stock to be in focus on Friday | Here's why

Shares of PC Jeweller are likely to attract investor attention during Friday's trading session, September 4, after the company provided a key update on its efforts to become debt-free.

In a post-market exchange filing on Thursday, the company said it had further reduced its outstanding debt and remains on track to achieve debt-free status during the current month. PC Jeweller said it has successfully cleared and repaid all outstanding debt under the terms of its settlement agreement dated September 30, 2024, with one more bank.

With the latest repayment, the company said it has now cleared all outstanding dues to nine of the 14 consortium banks, with all repayments completed ahead of their scheduled due dates. The company has also discharged more than 96% of its outstanding debt with the remaining five banks.

PC Jeweller said it remains firmly on track to repay the remaining less than 4% of its outstanding debt to the five banks and achieve debt-free status during the current month. The move is expected to materially strengthen the company's balance sheet and overall financial position.

The settlement agreement, signed on September 30, 2024, was a one-time settlement between PC Jeweller and a 14-bank consortium led by State Bank of India to resolve a stressed loan book that stood at nearly ₹4,100 crore as of March 2024.

The other consortium members are Union Bank, 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.

Earlier in its Q1 earning filing, the company said it has made significant progress in its deleveraging journey. It has fully repaid and discharged the debt of 7 out of 14 consortium banks as on date. Further, the company has discharged more than 96% of the outstanding debt of the remaining 7 banks as well.

PC Jeweller share price trend

PC Jeweller shares recovered sharply in August, surging 18%, with much of the rally coming after the company reported its June-quarter results. The rebound also pushed the stock's year-to-date performance into positive territory, with shares up around 10% and trading at ₹10.52 apiece. The recovery marks a sharp turnaround from the stock's nearly 40% decline in 2025.

The improved sentiment followed a strong set of quarterly numbers. For the quarter ended June, the company reported a 37% year-on-year increase in consolidated net profit to ₹221.88 crore, compared with ₹161.93 crore in the year-ago period.

Meanwhile, total income rose to ₹879.27 crore in the first quarter of the current financial year from ₹807.88 crore in the corresponding quarter of the previous year.

The company also strengthened its capital position, raising ₹2,702.11 crore through a preferential issue of fully convertible warrants during the quarter ended June 2026. In the current quarter, the promoters converted an additional 4.16 crore warrants into equity shares.

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