PC Jeweller shares drop 4% after Sebi sends warning letters to MD, company secretary. Here's why

ETMarkets.com

Sebi flags a compliance lapse at PC Jeweller, putting the stock under pressure after its recent rally.

PC Jeweller shares dropped to Rs 14.83 apiece on Monday morning, the lowest level seen by the stock in nearly three weeks. The shares of the company have fallen nearly 10% in a week, following a sharp rally that pushed the stock 20% higher in a month and more than 60% in 2026 so far.

Why Sebi issued warnings against PC Jeweller executives

The Securities and Exchange Board of India (Sebi) issued administrative warning letters to its promoter and managing director Balram Garg, and company secretary and compliance officer, Vijay Panwar, for not maintaining the structured digital database related to unpublished price sensitive information linked to a business update given for the first quarter of the financial year 2026 (April-June, 2025).

Also read | PC Jewellers Q2 Results: Net profit shoots up 58% to Rs 331 crore; company says it is now debt-free

In an exchange filing released on Saturday, PC Jeweller said the warning bears no impact on the financial, operational, or other activities of the listed entity, quantifiable in monetary terms to the extent possible.

PC Jeweller acknowledged that it did not maintain a structured digital database for the update, which was released on July 1, 2025, but the trading window for the designated persons and their immediate relatives was closed from July 1 till two days after the date of declaration of results for the quarter ended June 30, 2025.

What the PC Jeweller’s business update in question was about

PC Jeweller on July 3, 2025, had released a provisional business update for the first quarter of FY26. It said the quarter was very promising and fulfilling, closing on a very strong note and clocking robust performance. The company said it was able to achieve a standalone revenue growth of approximately 80% as compared to the corresponding quarter of the previous financial year, despite the volatility in gold prices. It witnessed high demand for its products on account of wedding and festive purchases by its customers during the quarter.

The jeweller also announced a reduction in its outstanding debt and its aim to achieve debt-free status in the exchange filing. Notably, the company earlier this year achieved the goal, which led to a sharp surge in share price.

PC Jeweller share price

PC Jeweller shares have gained around 30% in one year. In the longer term, the shares of the company delivered multibagger returns of more than 400% in three years and over 420% in five years.

The stock has a market capitalisation of nearly Rs 14,700 crore.

Also read | Why is market rallying today?