Persistent Negative Operating And Free Cash FlowDespite accounting profits in FY2026, operating and free cash flow remain deeply negative, reflecting working-capital stress or cash conversion issues. This persistent cash burn reduces financial flexibility, may force external financing, and limits the company's ability to fund capex or buffer downturns.
Thin, Volatile MarginsMargins have declined and remain thin, leaving limited buffer against cost inflation, input-price swings, or demand softness. Persistent margin volatility undermines sustainable profitability and makes earnings sensitive to modest adverse moves in pricing, volumes, or raw material costs.
Rising Leverage Increases Financial RiskLeverage has increased materially year-over-year, raising interest and refinancing obligations just as cash generation is weak. Higher debt alongside negative cash flow heightens default and liquidity risk, constraining strategic options and raising the firm's vulnerability to macro shocks.