Shares of jewellery retailer PC Jeweller climbed 10% on Friday after the company posted stronger fourth-quarter earnings, fueled by rising income, improving profitability and a sharply reduced debt burden, rekindling investor optimism around its turnaround story.

The stock gained after the company reported a 61% year-on-year increase in consolidated net profit for the quarter ended March 31, reaching Rs. 152.89 crore, compared with Rs. 94.78 crore a year earlier. Total income rose to Rs. 946.26 crore from Rs. 700.10 crore, according to a regulatory filing.

For the full fiscal year ended March 2026, the company reported net profit of Rs. 714.46 crore, up from Rs. 577.70 crore in the previous year, while annual income surged to Rs. 3,549.58 crore from Rs. 2,371.87 crore, reflecting stronger operational momentum amid recovering consumer demand.

The earnings rebound comes as PC Jeweller continues to repair its balance sheet after years of financial strain. Managing Director Balram Garg said FY26 marked a “critical year of recovery,” driven by disciplined execution and sustained customer traction.

Since implementing its settlement agreement with lenders, the company has reduced outstanding debt by more than 90%, Garg said, adding that management remains focused on becoming debt-free.

That effort is increasingly central to the company’s growth narrative. Once debt obligations are fully resolved, PC Jeweller plans to shift into expansion mode, betting on an asset-light franchise strategy to rebuild market presence.

The company said it has received encouraging interest from prospective partners for large-format franchise outlets and aims to open as many as 100 franchise showrooms over the next 12 to 18 months.

For investors, the sharp rally raises a familiar question: Is the recent momentum a reflection of improving fundamentals—or an early wager on a broader turnaround still in progress?

The answer may hinge on whether PC Jeweller can sustain earnings growth while successfully executing its ambitious expansion plans without reigniting balance-sheet risks.