Weak Cash Conversion; Negative FCF In FY2026Operating cash covered under half of net income and FCF swung to a sizable negative in FY2026, indicating weak cash conversion or heavy working-capital/capex strain. Persistently weak cash flow can limit reinvestment, constrain dividends, and increase vulnerability to demand or supply shocks.
Margin Softness In FY2026 Vs FY2025After several years of improvement, margins rolled over in FY2026 across gross, operating and EBITDA lines. If cost inflation, competitive pricing pressure, or mix shifts persist, margin compression would erode earnings durability and reduce the firm's ability to self-fund investments and maintain returns.
Recent Negative EPS GrowthEPS growth was negative (~-5.7%) despite revenue gains, signaling per-share earnings pressure from costs, nonrecurring items, or capital intensity. Continued EPS volatility can undermine earnings predictability and limit confidence in upward ROE or payout expansion over the medium term.