Negative Free Cash Flow From CapexPersistent negative free cash flow driven by elevated capex is a durable risk: even with positive operating cash flow, continued investment intensity can erode cash reserves, force external funding, or constrain discretionary spending like dividends and capacity for strategic M&A.
Declining EBIT MarginA drop in EBIT margin to 7.8% signals operational margin pressure versus high gross margins, suggesting rising operating costs or inefficiencies. If persistent, this compression limits return on invested capital and reduces free cash generation despite healthy top-line growth.
Geographic Concentration RiskHeavy reliance on North East India and nearby regions concentrates revenue exposure to regional infrastructure cycles, regulatory changes, and logistical challenges. This structural concentration can limit diversification and amplify demand volatility over the medium term.