High LeverageHeavy reliance on external debt increases refinancing and interest-rate sensitivity for an NBFC where cost of funds drives margins. Elevated leverage can constrain strategic flexibility, magnify losses during stress, and elevate funding risk over the next several months if market conditions tighten.
Negative Operating Cash FlowPersistent negative operating cash flow means earnings are not converting into cash, pressuring liquidity for lending growth and daily operations. For a finance company, weak cash conversion necessitates continued external funding and raises refinancing and solvency concerns over a multi-month horizon.
Net Margin Pressure From ExpensesDespite healthy gross and EBITDA margins, elevated operating expenses compress net profitability. If operating costs remain high, sustained margin pressure could erode return metrics and limit retained earnings available for capital build-up, slowing organic capital accumulation and growth.