PC Jeweller's Path to Debt Freedom: A Turnaround Success

PC Jeweller Ltd plans to be debt-free by March 2026, having reduced its bank loans by over 55% to Rs 1,800 crore. With substantial sales growth and strategic financial management, the company aims for complete debt clearance, leveraging investor funds and equity conversions.

PC Jeweller Ltd has slashed its bank loans by more than half, reducing debt to approximately Rs 1,800 crore in the current fiscal year, according to MD Balram Garg. The company aims to be debt-free by March 2026, driven by improved sales and strategic fundraising efforts.

In a significant move, the Delhi-based jeweller reached a settlement with a 14-bank consortium led by SBI, addressing an outstanding loan that stood at Rs 4,100 crore as of March 31, 2024. Plans are underway to further cut loans to Rs 1,775 crore by the fiscal year's end.

The company anticipates raising over Rs 1,500 crore in the next fiscal from investors through the preferential issue of warrants, earmarked for loan clearance. An earlier preferential issue culminated in a Rs 2,702.11 crore raise. The strategic reduction in debt and surge in sales have significantly bolstered PC Jeweller's financial position.

(With inputs from agencies.)