Previous covenants took into account net debt and working capital fluctuations. Thus, covenant limits tighten towards the end of the fiscal year, as the assumption is that working capital is released and net debt decreases. The new covenant terms likely have the same dynamic.
If the operating margin remains weaker this fiscal year than I predict, the balance sheet position will be tight again at the beginning of fiscal year 2027.
Therefore, I would not breathe a sigh of relief yet. A better-than-expected operating margin or a stronger inventory reduction in Q2’26 could change the situation. I consider this unlikely, and the justifications can be found in the pre-report.
Since fiscal year 2023, the company has implemented significant annual cost-saving measures (in my interpretation, partly due to the need to protect its balance sheet position). I believe it’s important to break the cycle of restructuring and tight balance sheet situation so that management can focus on business development. With business cash flow, this seems realistic to me by the end of fiscal year 2027.
The limit works exactly like this. 
Despite this gloomy fundamental picture, the share price undoubtedly incorporates a lot of bad news. That’s why forming an opinion was difficult. If one is more optimistic than me about the development of profitability and cash flow, now is probably a good buying opportunity.