Are PC Jeweller latest results good or bad?

PC Jeweller has reported its financial results for the quarter ending June 2025, highlighting a significant year-on-year growth in Profit After Tax (PAT) and net sales. The PAT reached Rs 256.71 crore, reflecting a notable increase of 645.82%, while net sales reached a record Rs 724.91 crore, marking a 29.2% rise compared to the average of the previous four quarters.
However, the company is facing challenges that could impact its financial stability. The debt-equity ratio has improved to 0.35 times, indicating a reduction in borrowing relative to equity capital. Nonetheless, interest expenses have surged to Rs 86.39 crore, which represents a substantial increase of 1,718.74% from the previous half-year period, suggesting rising borrowing costs that may affect profitability.

The operating profit to interest ratio has declined to its lowest point in five quarters at 3.06 times, indicating a reduced ability to manage interest payments effectively. Additionally, non-operating income has become a significant component of the company's financials, accounting for 50.72% of Profit Before Tax (PBT), which raises concerns about the sustainability of this income source.

In terms of quarterly performance, net sales showed a growth of 3.70% compared to the previous quarter, while consolidated net profit saw a growth of 70.85%. However, operating profit (excluding other income) experienced a decline of 12.22%, and the operating profit margin (excluding other income) decreased by 3.19%.

Overall, while PC Jeweller's latest results indicate strong growth in certain areas, the company is also navigating significant challenges that could impact its financial health. The company saw an adjustment in its evaluation in light of these results.