Rising LeverageLeverage increased materially year-over-year, pushing debt-to-equity to ~1.19. Higher leverage amplifies balance-sheet risk, increases interest and refinancing sensitivity, and reduces financial flexibility. For a credit business, this makes the firm more exposed to funding stress or credit losses over the medium term.
Volatile Cash GenerationOperating and free cash flow have been inconsistent, with a multi-year swing before recovery. Free cash flow in FY2026 still trails net income (about three-quarters), indicating earnings are not fully converting to cash. This variability undermines reliable debt servicing and reinvestment capacity over the medium term.
Margin UnpredictabilityA fall in net margin from ~34% to ~28% year-over-year signals margin compression risks and reduces earnings predictability. Such volatility may reflect rising costs, pricing pressure, or credit normalization and complicates forecasting, capital allocation, and assessment of sustainable profitability over the coming quarters.