Structurally High LeveragePersistently elevated leverage limits financial flexibility and raises sensitivity to interest-rate moves and credit deterioration. For an NBFC, high debt levels increase refinancing and liquidity risk, constraining the firm's ability to expand without raising costly external capital.
Volatile Cash Generation HistoryLarge swings in operating cash flow driven by loan-book and working-capital timing undermine cash reliability. This unpredictability complicates liquidity planning, increases dependence on market funding in stress periods, and raises refinancing risk despite the recent rebound.
Margin Compression In FY2026Material gross and operating margin compression suggests rising funding costs, pricing pressure, or adverse mix shifts. If persistent, this erosion reduces retained earnings, limits capacity to absorb credit losses, and weakens long-term return durability despite still-elevated net margins.