Network18 Media & Investments Limited — financial distress indicators
Financial-health summary
Network18 Media & Investments Limited's reported numbers place it in the 'Weak' financial-health band (distress score 62/100). The main indicators are operating profit does not cover interest, severe working-capital shortfall and revenue collapse. Independently, the Ohlson accounting model puts its 1-year failure probability at 37% and the market-implied (Merton) default probability is 2.2%. In its favour: high insider/promoter ownership (62%) aligns management with survival.
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 -0.39×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Current ratio is 0.26 (current assets cover 26% 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.
Revenue changed -69% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Total debt is 17.9× EBITDA.
Debt above ~6× EBITDA is deep sub-investment-grade territory; refinancing becomes difficult when rates or earnings move against the company.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating cash flow negative in 3 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- High insider/promoter ownership (62%) aligns management with survival.
📰 Recent news scan
- Jio Platforms IPO could unlock value at RIL, drive re-rating: Motilal Oswal - Moneycontrol.comGoogle News · 2026-10-07
- Network18 Media & Investments Limited Reports Earnings Results for the First Quarter Ended June 30, 2026 - marketscreener.comGoogle News · 2026-07-15
- RIL shares rise 5% in three sessions ahead of AGM: Here are other triggers - TradingViewGoogle News · 2026-06-15
- Network18 Stock Prediction 2026: Expert Analysis, Forecast Scenarios and Full Stock Review - UnivestGoogle News · 2026-06-12
- We Think You Should Be Aware Of Some Concerning Factors In Network18 Media & Investments' (NSE:NETWORK18) Earnings - Simply Wall StreetGoogle News · 2026-04-27
- Network18 Q4 loss at Rs 29.61 crore, revenue up 9.7% to Rs 615.78 cr - The Economic TimesGoogle News · 2026-04-18
⚖️ 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 Network18 Media & Investments Limited's financial-health indicators show?
As of 2026-10-09, Network18 Media & Investments Limited's public financial data places it in the 'Weak' band with a distress score of 62/100, driven by operating profit does not cover interest, severe working-capital shortfall and revenue collapse. 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 Network18 Media & Investments Limited's financial distress score?
62/100 ('Weak'). Ohlson O-score -0.55 (model 1-year failure probability 37%). Merton distance-to-default 2.01 σ (model default probability 2.2%).
What works in Network18 Media & Investments Limited's favour?
High insider/promoter ownership (62%) 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.