Negative Free Cash FlowPersistent negative free cash flow despite earnings growth indicates the company has not yet converted profitability into surplus cash. Over months to years this can force external financing, constrain discretionary capex, and raise refinancing and liquidity risk, especially during cyclical downturns.
Rising LeverageDebt rising to 5.31B elevates leverage and interest obligations. With FCF negative and cash recovery still recent, higher indebtedness reduces financial flexibility, heightens sensitivity to interest rate moves and policy changes, and increases default/refinancing risk over a multi-month horizon.
Uncertain Margin SustainabilityObserved margin compression and lack of FY26 margin detail imply profits may be exposed to raw-material swings, excise regimes and working-capital dynamics. This structural variability limits predictability of sustained margin expansion and heightens the risk of future earnings volatility.