High LeverageElevated debt-to-equity (around 5x historically; ~5.4x FY2026) makes the business highly sensitive to funding conditions and interest-rate moves. Structurally high leverage limits financial flexibility, raises refinancing and counterparty risk, and can amplify stress in adverse credit cycles over the medium term.
Volatile Cash FlowsMarked swings in operating and free cash flow undermine reliability of internally generated funds. Working-capital and loan-book movements can rapidly consume cash, complicating liquidity planning and increasing dependence on market funding during down cycles, raising medium-term funding risk.
Margin Compression / Credit-cost PressureObserved margin compression in FY2026 signals rising funding costs, higher credit provisioning, or adverse product mix. For a spread-driven NBFC, sustained margin pressure erodes profitability and capital accumulation, reducing capacity to finance growth and withstand future asset-quality deterioration.