Shares of PC Jeweller gained nearly 5% on Wednesday, bucking the broader weakness in the Indian equity markets after the company announced a key milestone in its ongoing debt reduction plan.

The stock rose as much as 6% during the session, even as benchmark indices traded in the red, with investors cheering the company’s progress toward becoming debt-free.  

In a regulatory filing, PC Jeweller informed the stock exchanges that it has successfully repaid all outstanding dues covered under the Settlement Agreement dated September 30, 2024, with respect to two of its consortium banks. The company said the repayments mark a significant step in its financial turnaround strategy and reiterated its goal of achieving debt-free status during the current quarter.  

The latest announcement builds on the company’s recent business update, where it highlighted strong operational performance and expressed confidence in eliminating its remaining debt within the ongoing quarter. The improving balance sheet has strengthened investor sentiment around the stock in recent trading sessions.  

PC Jeweller has been steadily executing its deleveraging strategy following the settlement reached with its lending banks in 2024. The company believes continued debt repayments will further improve its financial position and support its broader turnaround efforts.  

The stock has witnessed heightened investor interest over the past week, with buying momentum supported by optimism surrounding its financial restructuring and improving fundamentals. Despite the recent rally, the stock remains well below its 52-week high, indicating that investors continue to track the pace of the company’s recovery.  

Market participants will now closely watch the company’s progress in completing its remaining debt repayments, as achieving debt-free status could serve as an important catalyst for the next phase of its turnaround.