Dish TV India Limited — financial distress indicators
Financial-health summary
Dish TV India Limited's reported numbers place it in the 'Very weak' financial-health band (distress score 70/100). The main indicators are liabilities exceed assets (negative equity), severe working-capital shortfall and ohlson o-score signals likely failure. Independently, the Ohlson accounting model puts its 1-year failure probability at 100% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
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.
Total liabilities are 3.31× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of net-worth erosion; under the Companies Act 2013 it is a recognised sign of financial sickness.
Current ratio is 0.08 (current assets cover 8% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
O-score 22.21 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Revenue changed -26% year over year.
Falling sales reduce cash available for debt service.
Net income negative in 3 of 3 fiscal years. Partly offset by positive operating cash flow and net cash.
Persistent losses erode equity and the capacity to absorb shocks.
Price is -61% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Operating margin fell from 16% to -36% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (32%) aligns management with survival.
📰 Recent news scan
- Dish TV India - 9 penny stocks crash up to 57% in just 2 months - The Economic TimesGoogle News · 2026-10-04
- Dish TV India Ltd Dividend History, Yield & Record Date - INDmoneyGoogle News · 2026-10-01
- Dish TV India Ltd. Lower Circuit Today: Price, Data and Peers - UnivestGoogle News · 2026-09-29
- Dish TV India (NSEI:DISHTV) Stock Forecast & Analyst Predictions - Simply Wall StreetGoogle News · 2026-09-25
- Dish TV India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs - Value ResearchGoogle News · 2026-08-30
- Dish TV flags MIB approval rule as hurdle to meeting SEBI board norms after stock exchange fines - StoryBoard 18Google News · 2026-07-31
⚖️ 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 Dish TV India Limited's financial-health indicators show?
As of 2026-10-09, Dish TV India Limited's public financial data places it in the 'Very weak' band with a distress score of 70/100, driven by liabilities exceed assets (negative equity), severe working-capital shortfall and ohlson o-score signals likely failure. 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 Dish TV India Limited's financial distress score?
70/100 ('Very weak'). Ohlson O-score 22.21 (model 1-year failure probability 100%). Merton distance-to-default 6.03 σ (model default probability 0.0%).
What works in Dish TV India Limited's favour?
Cash on hand covers all debt (net-cash balance sheet). Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (32%) aligns management with survival.
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.
Other Telecom & Media companies with distress indicators
- Diligent Media Corporation Limited (DNAMEDIA)Very weak 100/100
- Mahanagar Telephone Nigam Limited (MTNL)Very weak 100/100
- Radaan Mediaworks India Limited (RADAAN)Very weak 100/100
- Reliance Communications Limited (RCOM)Very weak 100/100
- SITI Networks Limited (SITINET)Very weak 100/100
- Tips Films Limited (TIPSFILMS)Very weak 97/100
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.