Kolte-Patil Developers Limited — financial distress indicators
Financial-health summary
Kolte-Patil Developers Limited's reported numbers place it in the 'Watch' financial-health band (distress score 40/100). The main indicators are operating profit does not cover interest, revenue collapse and losses in 2 of the last 3 years. Independently, the market-implied (Merton) default probability is 0.0%. In its favour: operating cash flow is positive over the latest 12 months.
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 -2.85×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Revenue changed -57% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating margin fell from 3% to -10% 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
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (37%) aligns management with survival.
📰 Recent news scan
- Kolte - Patil Developers vs Nifty 50: Returns Compared - UnivestGoogle News · 2026-10-01
- Bullish: Analysts Just Made An Incredible Upgrade To Their Kolte-Patil Developers Limited (NSE:KOLTEPATIL) Forecasts - Simply Wall StGoogle News · 2026-08-17
- Kolte-Patil shares zoom 19% to hit fresh 52-wk high after Q1 turnaround - Business StandardGoogle News · 2026-08-11
- Kolte-Patil Developers Climbs 3.68% to ₹445.1: Realty Stock Approaches Key Resistance - Overnight Profile - https://www.siam.in/Google News · 2026-08-07
- Buzzing Stocks: Kolte-Patil Developers jumps 5% on project wins; Godrej Agrovet slips after weak Q1... - Moneycontrol.comGoogle News · 2026-08-06
- Kolte-Patil Developers shares soar 15% on strong Q4 business update. Here’s everything you need to know - The Economic TimesGoogle News · 2026-04-17
⚖️ 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 Kolte-Patil Developers Limited's financial-health indicators show?
As of 2026-10-09, Kolte-Patil Developers Limited's public financial data places it in the 'Watch' band with a distress score of 40/100, driven by operating profit does not cover interest, revenue collapse 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 Kolte-Patil Developers Limited's financial distress score?
40/100 ('Watch'). Merton distance-to-default 6.15 σ (model default probability 0.0%).
What works in Kolte-Patil Developers Limited's favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (37%) 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.