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🔴 Bear CaseWhat could go wrong?

1. Margins are being competed away
   EBITDA margin has fallen from 19.8% to 15.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
2. The debt load needs earnings to hold up
   Debt is 4.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
3. Sales are being booked faster than collected
   Receivables are up 194% against revenue up 29%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
4. Returns on shareholder capital are falling
   ROE has dropped from 56.3% to -12.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
5. Earnings are hard to forecast
   Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.