Decline In Free Cash FlowA recent drop in free cash flow, despite positive operating cash flow, weakens the company's ability to return capital or fund growth without tapping reserves or taking debt. Persistently lower FCF can constrain dividends, capex or deleveraging plans over the medium term.
High Regulatory And Tax SensitivityThe business is structurally exposed to excise, GST and packaging/health-warning rules that can change policy-driven pricing and demand. Such regulatory shifts are durable risks that can materially alter affordability, volumes and profitability for tobacco players over multi-month horizons.
Concentration & Input-cost VolatilityHeavy revenue concentration in cigarettes leaves the company vulnerable to demand shifts or policy actions. Coupled with volatility in tobacco, paper and packaging costs, this concentration can compress margins and earnings visibility, pressuring profitability sustainability if costs rise.