PCJEWELLER - PC Jeweller

📊 NSE: PCJEWELLER 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 10:56

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations increased to INR 2,243.25 crore in FY25 from INR 189.45 crore in FY24, representing a growth of 1,084% YoY due to a significant increase in operational efficiency post-settlement.

Profitability Margins

Operating Profit Margin improved to 22.26% in FY25 from -76.40% in FY24. Net Profit Margin reached 25.64% in FY25 compared to -342.71% in FY24, driven by the 1,084% surge in turnover and a 90% reduction in finance costs.

EBITDA Margin

EBIT increased by approximately 445% YoY, contributing to an Operating Profit Margin of 22.26%. This recovery is attributed to the resumption of business activities following the One Time Settlement (OTS) with lenders.

Credit Rating & Borrowing

The company carries a credit rating of 'CRISIL D/CRISIL D Issuer Not Cooperating' as of 2025. Finance costs decreased by 90% YoY following the debt reduction and settlement with consortium lenders.

⚙️ Operational Drivers

Raw Materials

Gold, diamonds, and precious stones are the primary raw materials used in the manufacturing of jewellery products.

Capacity Expansion

The company maintained a total employee strength of 723 as of March 31, 2025, to support its manufacturing and retail operations.

Manufacturing Efficiency

Operational efficiency significantly increased post-OTS, leading to a 445% increase in EBIT and a massive recovery in turnover.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is focusing on a franchise-led expansion model, recently onboarding as a Franchise Brand on the CM-YUVA Portal in Uttar Pradesh to leverage government-backed entrepreneurial platforms. Growth is also supported by the conversion of fully convertible warrants into equity to strengthen the capital base.

Products & Services

Manufacturing, retail, and export of jewellery including gold jewellery, diamond-studded jewellery, and silver articles.

Brand Portfolio

PC Jeweller.

Market Expansion

Expansion into the Uttar Pradesh market through the CM-YUVA Portal as a franchise brand to increase regional footprint.

Strategic Alliances

Entered into a Joint Settlement Agreement dated September 30, 2024, with Consortium Lenders to restructure debt and resume normal operations.

🌍 External Factors

Industry Trends

The jewellery industry is seeing a shift toward organized retail and franchise models. PC Jeweller is positioning itself to capture this by resolving legacy debt issues and utilizing digital government portals for expansion.

Competitive Moat

The company's moat is built on its established brand name in the Indian jewellery market and its transition toward a capital-light franchise model, though this is currently tempered by credit rating challenges.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RBI Master Directions on Exports of Goods and Services and SEBI Listing Obligations (LODR) Regulations. The company faced SEBI-related fines for non-compliance in September 2025.

Taxation Policy Impact

The company recognized a Deferred Tax Asset in FY25 due to confidence in future taxable profits. It also recognized interest income of INR 51.39 crore on income tax refunds.

Legal Contingencies

Pending export discount compliance issues involving INR 513.65 crore from FY19. Unpaid income tax liability of INR 81.26 crore was adjusted against refunds. The company also faces various pending litigations disclosed in Note 44.

⚠️ Risk Analysis

Key Uncertainties

Auditors issued a qualified opinion regarding the valuation of inventory and the inability to examine its consequential impact on financial statements. There is also uncertainty regarding the final resolution of RBI export discount requirements (INR 513.65 crore).

Third Party Dependencies

Dependency on consortium lenders for the release of inventory and adherence to the Settlement Agreement.

Technology Obsolescence Risk

The company has implemented accounting software with audit trail (edit log) facilities to comply with statutory requirements and ensure data integrity.