ideaForge Technology Limited — financial distress indicators
Financial-health summary
ideaForge Technology Limited's reported numbers place it in the 'Watch' financial-health band (distress score 38/100). The main indicators are cash runway under 12 months, operations consume cash and losses in 2 of the last 3 years. Independently, the Ohlson accounting model puts its 1-year failure probability at 31% 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.
At the current free-cash-flow burn, cash covers ~9 months.
Going-concern standard: management must assess ability to continue for 12 months (Ind AS 1 ¶25–26). Runway below that horizon forces dilution, asset sales or default.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating margin fell from 12% to -16% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (2.62).
- Revenue still growing (+40% YoY).
- High insider/promoter ownership (44%) aligns management with survival.
📰 Recent news scan
- Missed ideaForge Technology's Run? Here's What Early Buyers Saw - Simply Wall StreetGoogle News · 2026-10-08
- Certain Equity Shares of ideaForge Technology Limited are subject to a Lock-Up Agreement Ending on 8-OCT-2026. - www.marketscreener.comGoogle News · 2026-10-08
- Ideaforge promoter Ankit Mehta pledges 2.8 lakh shares to Infina Finance - scanx.tradeGoogle News · 2026-10-06
- ideaForge Secures Major Domestic UAV Order | L&T Wins Major Dubai Road Infrastructure Contracts | Top Buzzing Stocks Today - EquitymasterGoogle News · 2026-10-05
- Ideaforge Technology Limited Actuals & Estimates (NSE:IDEAFORGE) - TradingViewGoogle News · 2026-06-26
- Ideaforge zooms 144% since April, hits 2-year high; what's driving stock? - Business StandardGoogle News · 2026-06-04
⚖️ 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 ideaForge Technology Limited's financial-health indicators show?
As of 2026-10-09, ideaForge Technology Limited's public financial data places it in the 'Watch' band with a distress score of 38/100, driven by cash runway under 12 months, operations consume cash and losses in 2 of the last 3 years. 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 ideaForge Technology Limited's financial distress score?
38/100 ('Watch'). Ohlson O-score -0.81 (model 1-year failure probability 31%). Merton distance-to-default 8.59 σ (model default probability 0.0%).
What works in ideaForge Technology Limited's favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (2.62). Revenue still growing (+40% YoY). High insider/promoter ownership (44%) 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.
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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.