Negative Operating And Free Cash FlowMaterial negative operating and free cash flow undermine internal funding capacity and strain liquidity. Persistent negative cash generation forces reliance on external financing, heightens refinancing risk, and limits ability to service debt or invest—a durable concern until cash conversion returns to positive.
Sharp Rise In LeverageA large step-up in debt materially increases interest burden and refinancing risk, reducing financial flexibility. Higher leverage constrains capital allocation, magnifies downside from any margin pressure, and is a sustained risk factor until debt is meaningfully reduced or profitability recovers.
Inconsistent Earnings QualityEarnings volatility—profitability swings and a FY2026 net loss despite higher sales—indicates margin sensitivity to input costs, working-capital shocks, or policy effects. That inconsistency reduces predictability of earnings and cashflow, complicating planning and raising medium-term execution risk.