The company reported restated losses from continuing operations of ₹964.39 crore in FY26, ₹215.07 crore in FY25 and ₹852.53 crore in FY24, and ₹64.13 crore in the quarter ended June 30, 2026. FY26 also carried ₹835.84 crore of exceptional items, mainly a non-cash charge from share conversion ratio adjustments, plus a ₹641.78 crore loss from discontinued Civil Infrastructure Works. The company and several subsidiaries have also reported standalone losses, and continued losses could affect its financial condition.

The company relies on third-party suppliers, mostly small and medium-scale manufacturers, for the majority of its products in the Manufacturing Business and for commodities in the Ecosystem Business. Revenue from products sourced from third-party suppliers was 80.46% of segment revenue in FY26 (₹12,803.27 crore). Price volatility, capacity and quality issues, supply disruptions and trade or foreign exchange risks could hurt operations.

The business depends on the performance of customer industries such as renewables, AI infrastructure, oil & gas, consumer electronics and defence & aerospace. Energy Products contributed 69.42% of Manufacturing Business segment revenue in FY26. A downturn in any of these industries could adversely affect revenues.

India accounted for 82.54% and the USA for 14.33% of continuing-operations revenue in FY26. Adverse economic, tariff or regulatory changes in these two markets could reduce demand for the company's products. A large share of sales is routed through the USA and other foreign subsidiaries, exposing the company to local market and regulatory risks.

The top 10 suppliers accounted for 38.18% of total expenses for continuing operations in FY26 (40.71% in the quarter ended June 30, 2026), and the top five for 26.93%. Supplier arrangements are mostly short-term purchase orders without fixed long-term commitments. Disruption in supply or quality from these suppliers could affect delivery timelines, costs and reputation.

The statutory auditors included emphasis of matter paragraphs and modifications under 'Report on Other Legal and Regulatory Requirements' in their reports for all periods covered. These relate to the absence of audit trail features in accounting software, fund advances through intermediaries and uncertain collection of a Bangladesh receivable (₹88.61 crore at June 30, 2026). The audit opinion was not modified, but the observations may raise concerns about internal controls.

The top 10 customers contributed 35.90% of revenue from operations in FY26, up from 26.89% in FY25 and 22.37% in FY24, and 29.39% in the quarter ended June 30, 2026. Contracts are largely short-term purchase orders that do not oblige customers to maintain order volumes. Loss of a large customer or lower orders could hurt revenue and cash flows.

The company faces strict performance, quality and delivery requirements from customers. Defects or failures to meet specifications, whether caused by the company or its suppliers, could lead to order cancellations, recalls, liability claims and reputational damage. Contractual protections, supplier warranties and insurance may prove inadequate.

The company operates 26 own manufacturing facilities across India, Spain, the USA and Germany, and adverse economic or regulatory changes in these regions could affect its supply chains. Certain approvals, including fire NOCs and contract labour registrations for some Kryfs units and the relocated Manesar facility, are still pending. The Greater Noida facility is currently suspended due to relocation.

Many customers do not have firm long-term purchase commitments, and forecasts are indicative and non-binding. Orders can be amended, rescheduled or cancelled, which can disrupt production schedules, reduce capacity utilisation and compress margins. Excess inventory and extended payment cycles may follow a sustained reduction in orders.