Jewellery penny stock under Rs 20: PC Jewellers announces stellar Q2FY26 and H1FY26 results & debt reduction by 23%
DSIJ Intelligence-1 / 12 Nov 2025/ Categories: Multibaggers, Penny Stocks, Trending
The stock is up by 24.3 per cent from its 52-week low of Rs 10.21 per share and has given multibagger returns of over 1,000 per cent in 5 years.
PC Jeweller Ltd is an Indian company that designs, manufactures, sells and trades gold, platinum, diamond and silver jewellery. They operate across India with multiple brands, including Azva, Swarn Dharohar and LoveGold and even created commemorative medallions for the Cricket World Cup.
The company's Q2 FY 2026 was financially strong, with standalone Domestic Revenues climbing by 63 per cent year-on-year (YoY). Sales reached Rs 825 crore in Q2 FY 2026, up from Rs 505 crore in the previous year. This performance contributed to a half-year (H1 FY 2026) sales growth of 71 per cent, totalling Rs 1,550 crore. Profitability surged even more: Q2 EBITDA grew by 91 per cent to Rs 246 crore, and Operating PAT saw a massive 99 per cent growth, rising from Rs 102 crore in Q2 FY 2025 to Rs 202.5 crore in Q2 FY 2026. For H1 FY 2026, EBITDA was up 109 per cent to Rs 456 crore, and Operating PAT soared by 143 per cent to Rs 366.5 crore.
The primary focus is a swift transition to a debt-free status by the end of FY 2026. During Q2 FY 2026, the company achieved a significant reduction in outstanding Bank debt by approximately 23 per cent (around Rs 406 crore). This follows a 9 per cent (Rs 155 crore) reduction in Q1 FY 2026 and over 50 per cent (Rs 2,005 crore) in the previous fiscal year. To support this, the company successfully raised approximately Rs 500 crore via a preferential allotment in Q2 FY 2026, adding to the Rs 2,702.11 crore raised previously. The remaining outstanding debt of approximately Rs 1,213 crore is well-covered by the funds received and future realisations.
The company fully resolved key operational issues stemming from past settlements. As per the DRAT's order dated October 7, 2025, the company successfully regained possession of the keys and inventory of its showrooms, which had been in custody. Furthermore, the company continues to expand its retail footprint, having launched a new franchise-owned showroom in Pitampura, Delhi, during Q2. These efforts ensure all core strengths, including manufacturing capabilities and a wide network of showrooms across India, remain intact.
Despite incurring a finance cost of approximately Rs 36.3 crore this quarter (Q2 FY 2026), the company recorded a substantial PAT of Rs 208 crore. The company’s finance cost was almost negligible (Rs 1.6 crore) in Q2 FY 2025 due to an interest moratorium ending in December 2024. Timely debt repayment will see the finance cost reduce in the coming quarters. By becoming debt-free by the end of FY 2026, the company will eliminate further borrowing-related finance costs, allowing it to use the expected surplus cash and improved operational momentum to drive sustained value creation for shareholders.
The company has a market cap of over Rs 8,000 crore. As of September 2025, State Bank of India (SBI) holds a 2.44 per cent stake and the Union Bank of India owns a 1.15 per cent stake in the company. The stock is up by 24.3 per cent from its 52-week low of Rs 10.21 per share and has given multibagger returns of over 1,000 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.