Balance Sheet StrengthA strong equity base and low leverage provide durable financial flexibility for an NBFC. This reduces refinancing and solvency risk, supports continued lending and investment activity, and gives management room to absorb losses or pursue selective opportunities over the next several months.
Improving Gross MarginsSustained improvement in gross margins signals better cost control or pricing power in the investment/financing mix. Higher margins create a buffer against revenue swings, support recoveries in net profitability, and improve the company's ability to generate internally funded growth or reserve for credit losses.
Free Cash Flow RecoveryAn improving free cash flow trend, even if uneven, indicates the company can generate distributable cash and reduce reliance on external funding. If the improvement persists, it strengthens liquidity, funds reinvestment and reduces funding costs, benefiting operations and capital allocation over months.