PC Jeweller establishes mining subsidiary in Chad to bolster backward integration in jewellery supply

PC Jeweller Limited told stock exchanges that a new step-down unit was set up abroad. The move linked to the group’s planned entry into mining. The company said the structure aimed to improve backward integration across the jewellery value chain. It also marked a shift towards sourcing precious metal ores through exploration and extraction activities.

After the disclosure, PC Jeweller shares traded at Rs 10.01 at 10:40 AM IST. That was 0.40% higher than the previous close of Rs 9.97. The price moved in a tight band, between Rs 9.93 and Rs 10.07. Around 9.2 million shares had traded during the session.

The company said PCJ Gems & Jewellery Limited, a wholly owned subsidiary, incorporated PCJ Mining SARL. The new entity was formed in the Republic of Chad. PCJ Gems & Jewellery Limited holds 66% in PCJ Mining SARL. The paid-up share capital is 10,00,000 CFA Francs. The unit has not started operations and reported nil turnover.

PCJ Mining SARL’s planned activities cover mining and mineral exploration. It also listed quarrying, manufacturing, refining, and marketing of mineral products. The scope includes extraction of precious metal ores. The company also stated goals around import-export trade and related services. It expects the mix to support supply efficiency and raw material access.

PC Jeweller said no promoter or promoter group entity held any stake in the new venture. Because of that, the incorporation did not count as a related party transaction. The disclosure also listed acquisition cost, consideration, and acquisition timing as non-applicable. These fields were marked that way since the entity was newly incorporated.

"The Company remains focused on strengthening core operations, expanding retail presence through owned and franchise formats, and enhancing customer reach. The company is confident of becoming debt free soon. With improving operational momentum, a stronger balance sheet, and participation in government-backed initiatives, the Company is well positioned for sustainable growth and market expansion and is confident of delivering healthy financial performance in the future as well," PC Jeweller said in its Q3FY26 earnings statement.

Under the One Time Settlement terms with banks, the company had an interest moratorium until December 2024. It said finance costs in Q3FY25 were about Rs 3 crores. PC Jeweller added it has met obligations on time. It expects finance costs to fall as debt gets repaid. It said no further borrowing costs would arise until it becomes debt-free.

PC Jeweller mining update and key market metrics

The company’s market capitalisation stood at Rs 7,901.60 Crore. PC Jeweller traded at a P/E ratio of 14.75. Over 52 weeks, the stock moved between Rs 8.67 and Rs 19.65. Key session details and valuation measures were as follows.

Metric	Value
Price (10:40 AM IST)	Rs 10.01
Previous close	Rs 9.97
Change	+0.40%
Intraday low / high	Rs 9.93 / Rs 10.07
Volume	~9.2 million shares
Market capitalisation	Rs 7,901.60 Crore
P/E ratio	14.75
52-week range	Rs 8.67 to Rs 19.65

The new step-down subsidiary in Chad widened PC Jeweller’s stated plan for backward integration. PCJ Mining SARL remained at a pre-operations stage, with nil turnover and stated capital of 10,00,000 CFA Francs. The company also clarified promoter interests were absent. Investors tracked the update as the stock traded in a narrow range with strong volume.