Profitability Below Historical PeaksAlthough margins recovered from FY2025 lows, net margin and ROE remain well below FY2021–FY2022 peaks. This implies ongoing cost or pricing pressure and limits on earnings power, constraining capital returns and reinvestment flexibility over the medium term.
Weak Cash ConversionFY2026 delivered positive FCF, but conversion is low relative to earnings (~0.29x) and operating cash covers only ~0.65x of debt. Poor cash conversion reduces ability to pay down debt, fund capex from internal cash, or sustain distributions without relying on external financing.
Rising LeverageDebt-to-equity roughly doubled versus earlier years. Higher leverage increases fixed financing costs and reduces balance‑sheet flexibility, making the company more vulnerable to demand shocks and slowing its ability to invest or pursue strategic opportunities without higher financing risk.