D. P. Abhushan Limited (DPAL) has had its long-term and short-term bank loan facilities reaffirmed by CARE Ratings Limited. The rating for long-term bank facilities of ₹51.95 crore has been reaffirmed as 'CARE A- ; Stable', a reduction from ₹56.06 crore. For long-term/short-term bank facilities totaling ₹288.00 crore (enhanced from ₹158.00 crore), the rating remains 'CARE A- ; Stable / CARE A2+'.

The reaffirmation is based on DPAL's experienced promoters in the jewellery retail sector, a strong operational track record of over eight decades under the 'DP Jewellers' brand in Madhya Pradesh and Rajasthan, healthy growth in its scale of operations, and moderate profitability. The ratings also consider DPAL’s prudent working capital management, comfortable financial risk profile, and adequate liquidity. Key strengths include growing scale of operations with total operating income (TOI) reaching ₹3,312 crore in FY25, and an improving PBILDT margin of 5.34% in FY25, expected to normalize between 6-7% for the full year. The company's capital structure remains comfortable with overall gearing at 0.46x as of March 31, 2025.

However, the ratings are constrained by profitability susceptible to volatile gold prices, inherent regulatory risks, and the highly fragmented and competitive nature of the gems and jewellery industry. The company plans to add two more stores in FY26 and an additional 14 new stores in the next two years.

DPAL's liquidity is adequate, supported by moderate utilization of working capital limits, low long-term debt repayment obligations, a comfortable operating cycle, and a high inventory turnover ratio. The company reported an inventory turnover ratio of 5.63x in FY25.