PC Jeweller Q3 Results: Revenue Jumps 37% to ₹875 Crore

Introduction

PC Jeweller Limited has reported a robust financial performance for the third quarter of fiscal year 2026, driven by strong consumer demand during the festive and wedding season. The company announced a significant 37% year-on-year increase in standalone revenue, alongside substantial progress in its debt reduction strategy. These positive developments, coupled with a strategic expansion plan in Uttar Pradesh, have improved investor sentiment and pushed the company's stock higher.

Strong Q3 FY26 Financial Performance

The quarter ending December 31, 2025, was marked by healthy sales momentum across PC Jeweller's product portfolio. The company's standalone domestic revenue reached ₹875 crores, a 37% increase compared to the same period last year. This growth was not limited to the top line; profitability metrics also showed considerable improvement. Gross profit surged by 63%, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 46% to ₹225 crores. Profit Before Tax (PBT) also saw a healthy increase of 29%, amounting to ₹189 crores for the quarter.

Nine-Month Performance Highlights

The positive trend extends to the company's performance for the nine months ended December 31, 2025. Over this period, PC Jeweller's sales increased by 57% to ₹2,426 crores. The growth in profitability was even more pronounced, with gross profit rising by 84% and EBITDA increasing by 83% to ₹681 crores. The Profit Before Tax for the nine-month period stood at ₹557 crores, marking a 58% increase year-on-year. This sustained growth indicates a strong operational turnaround and effective strategy execution.

Aggressive Debt Reduction Strategy

A key focus for PC Jeweller has been strengthening its balance sheet by reducing its debt burden. The company has made significant strides in this area, successfully cutting its outstanding debt by approximately 68% since executing a settlement agreement with its consortium of banks on September 30, 2024. This deleveraging effort is supported by a successful fundraising initiative. The company has raised ₹2,702.11 crores and an additional ₹500 crores through private placement. Of this, approximately ₹1,906 crores has already been received. The remaining amount of around ₹1,296 crores is expected to be realized upon the conversion of preferential warrants into equity by March 2026, which will be sufficient to cover the remaining bank debt.

Strategic Expansion via Government Partnership

Looking ahead, PC Jeweller is focused on expanding its retail footprint through a capital-efficient franchise model. The company has signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh under the Chief Minister Yuva Udyami Vikas Abhiyan (CM-YUVA). This initiative aims to establish 1,000 jewellery retail franchise units across rural and semi-urban areas of the state. The program is designed to support trained goldsmiths and entrepreneurs, fostering skill development and local employment while significantly enhancing PC Jeweller's market presence without substantial capital investment from the company.

Operational Normalization

In another positive development, the company has regained control of its showrooms and inventory that were previously under the custody of the Debts Recovery Appellate Tribunal (DRAT). Following compliance with the Joint Settlement Agreement, the keys and inventory have been handed back to PC Jeweller, allowing for the normalization of operations across its network.

Market Reaction and Outlook

The strong business update for Q3 FY26 was well-received by the market, with PC Jeweller's stock price surging by over 8% following the announcement. Investors have responded positively to the combination of revenue growth, improved profitability, and a clear path toward becoming a debt-free company. Management has reiterated its commitment to this goal and anticipates realizing the remaining funds from warrant conversions by March 2026. The company also plans to open up to 100 large franchise showrooms over the next 12 to 18 months, signaling confidence in its future growth trajectory.