Weak Cash GenerationDespite reported net profit in FY2026, operating and free cash flows were materially negative, reflecting timing mismatch in collections and project spend. Persistent negative cash generation raises dependence on external funding for project execution and increases vulnerability to capital-market disruptions over the coming months.
Elevated LeverageDebt-to-equity near 1.8x (up from ~0.85–1.1x earlier) leaves limited financial flexibility. Higher leverage increases interest and covenant pressure, constrains ability to fund new launches or land deals internally, and raises refinancing risk if project cash flows or market access deteriorate over the medium term.
Earnings Volatility And Thin MarginsThe company’s history of swings between losses and modest profits, with a thin FY2026 net margin (~2.8%), implies low tolerance for cost overruns or slower sales. Such earnings volatility undermines sustainable return generation and makes future investments and financing more conditional on consistently improved execution.