Jewellery retailer completes repayments ahead of schedule under 2024 settlement agreement; total debt was around Rs 3,000 crore
PC Jeweller has become debt-free after clearing its outstanding dues with all 14 consortium banks, completing repayments ahead of the scheduled dates under a settlement agreement signed in September 2024.
The jewellery retailer had total debt of around Rs 3,000 crore before entering into the one-time settlement (OTS) with the consortium of lenders. The company confirmed the latest repayment in a regulatory filing on September 25.
Debt Settlement Completed Ahead Of Schedule
PC Jeweller said it has successfully discharged the remaining outstanding debt owed to the banks and achieved its financial objective of becoming debt-free.
The repayment was completed under the terms of the Settlement Agreement dated September 30, 2024. The approved OTS included cash and equity components, along with provisions for the release of securities and mortgaged properties.
With the latest payment, the company has cleared its outstanding debt with all 14 consortium banks. PC Jeweller said the repayments were made ahead of the scheduled due dates.
The consortium was led by State Bank of India and included lenders such as Union Bank of India, Punjab National Bank, Axis Bank, IndusInd Bank, Bank of India, IDBI Bank, Kotak Mahindra Bank, Canara Bank and Bank of Baroda, among others.
Balance Sheet Strengthened
PC Jeweller said achieving debt-free status will materially strengthen its balance sheet and financial position.
The company had been progressively reducing its bank liabilities in recent months. Earlier in September, it had cleared dues to 11 of the 14 consortium banks and had said it was on track to settle the remaining obligations during the month.
The debt resolution followed the OTS approved in 2024 to address the company’s outstanding obligations to the consortium. As part of the settlement, PC Jeweller had also made a preferential allotment of equity shares to consortium lenders against a portion of its outstanding debt.
Q1 Profit Rises 37%
The debt-free milestone comes after an improvement in PC Jeweller’s financial performance. In the June quarter of FY27, the company reported a 37 per cent year-on-year increase in consolidated net profit to Rs 221.88 crore, compared with Rs 161.93 crore in the corresponding quarter a year earlier.
Total income increased to Rs 879.27 crore in the quarter from Rs 807.88 crore in the year-ago period.
PC Jeweller operates around 50 physical stores across 12 states. The company has been undertaking financial restructuring and debt reduction as part of its efforts to strengthen its balance sheet and support its jewellery retail business.
