ABM International Limited — financial distress indicators
Financial-health summary
ABM International Limited's reported numbers place it in the 'Weak' financial-health band (distress score 57/100). The main indicators are operating profit does not cover interest, losses in each of the last 3 years and material debt with no ebitda. Independently, the Ohlson accounting model puts its 1-year failure probability at 92% and the market-implied (Merton) default probability is 1.5%.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Interest coverage (EBIT / interest) is -10.68×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Debt is 48% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 2.45 → model probability 92%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- ABM International (NSE:ABMINTLLTD): What Does the Q2 FY27 Demat Confirmation Certificate Mean? - Kalkine IndiaGoogle News · 2026-10-08
- ABM International (NSEI:ABMINTLLTD) - Stock Analysis - Simply Wall StreetGoogle News · 2026-10-06
- ABM INTERNATIONAL LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes - EquitymasterGoogle News · 2026-10-06
- Abm International Ltd (NSE: ABMINTLLTD) Falls 4.99% as Stock Movement Draws Market Attention - Kalkine IndiaGoogle News · 2026-08-26
- ABM International Ltd. (ABMINTLLTD) Share Price Surges 9.65% Today - UnivestGoogle News · 2026-07-27
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do ABM International Limited's financial-health indicators show?
As of 2026-10-09, ABM International Limited's public financial data places it in the 'Weak' band with a distress score of 57/100, driven by operating profit does not cover interest, losses in each of the last 3 years and material debt with no ebitda. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is ABM International Limited's financial distress score?
57/100 ('Weak'). Ohlson O-score 2.45 (model 1-year failure probability 92%). Merton distance-to-default 2.18 σ (model default probability 1.5%).
What works in ABM International Limited's favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.