OneSource Specialty Pharma Limited — financial distress indicators
Financial-health summary
OneSource Specialty Pharma Limited's reported numbers place it in the 'Weak' financial-health band (distress score 51/100). The main indicators are operating profit does not cover interest, losses in each of the last 3 years and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 28% and 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 0.45×.
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.
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.
Current ratio is 0.99.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Short-term debt is 9.1× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
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 (35%) aligns management with survival.
📰 Recent news scan
- Why Custom Truck One Source Stock Is Gaining Attention From AI Facility Demand - Simply Wall StreetGoogle News · 2026-10-08
- ONESOURCE Share Price Today: decline, valuation and peers - UnivestGoogle News · 2026-10-01
- OneSource Specialty Pharma stock: what the FY28 bet rests on - Value ResearchGoogle News · 2026-09-18
- Custom Truck One Source: Recent Share Price Weakness Presents An Opportunity To Buy - Seeking AlphaGoogle News · 2026-09-13
- Is Custom Truck One Source (CTOS) Stock Outpacing Its Auto-Tires-Trucks Peers This Year? - Yahoo FinanceGoogle News · 2026-09-10
- 3 Reasons to Avoid CTOS and 1 Stock to Buy Instead - StockStoryGoogle News · 2026-05-28
⚖️ 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 OneSource Specialty Pharma Limited's financial-health indicators show?
As of 2026-10-09, OneSource Specialty Pharma Limited's public financial data places it in the 'Weak' band with a distress score of 51/100, driven by operating profit does not cover interest, losses in each of the last 3 years and operations consume cash. 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 OneSource Specialty Pharma Limited's financial distress score?
51/100 ('Weak'). Ohlson O-score -0.93 (model 1-year failure probability 28%). Merton distance-to-default 6.17 σ (model default probability 0.0%).
What works in OneSource Specialty Pharma Limited's favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (35%) 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 Pharma & Biotech companies with distress indicators
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- Vivimed Labs Limited (VIVIMEDLAB)Very weak 100/100
- Mangalam Drugs & Organics Limited (MANGALAM)Very weak 90/100
- Lasa Supergenerics Limited (LASA)Very weak 82/100
- Ortin Global Limited (ORTINGLOBE)Very weak 77/100
- Zota Health Care Limited (ZOTA)Very weak 72/100
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.