Ortin Global Limited — financial distress indicators
Financial-health summary
Ortin Global Limited's reported numbers place it in the 'Very weak' financial-health band (distress score 77/100). The main indicators are operating profit does not cover interest, losses in each of the last 3 years and revenue collapse. Independently, the Ohlson accounting model puts its 1-year failure probability at 99% and the market-implied (Merton) default probability is 0.0%. In its favour: strong current ratio (1.60).
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 -327.82×.
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.
Revenue changed -71% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 4.63 → model probability 99%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Operating margin fell from -212% to -718% 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
- Strong current ratio (1.60).
📰 Recent news scan
- Ortin Global Limited Approves Managing Director Changes - www.marketscreener.comGoogle News · 2026-10-01
- ORTINGLOBE Q2 2026 Earnings: Revenue Slumps 70.6% YoY, Net Loss of ₹0.91 per Share - Earnings Season Preview - https://www.siam.in/Google News · 2026-09-08
- Why Are ORTIN GLOBAL (NSE: ORTINGLOBE) Shares Under Pressure After Hitting New Highs? - Kalkine IndiaGoogle News · 2026-06-09
- ORTIN LABORATORIES Share Price - UpstoxGoogle News · 2026-05-05
⚖️ 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 Ortin Global Limited's financial-health indicators show?
As of 2026-10-09, Ortin Global Limited's public financial data places it in the 'Very weak' band with a distress score of 77/100, driven by operating profit does not cover interest, losses in each of the last 3 years 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 Ortin Global Limited's financial distress score?
77/100 ('Very weak'). Ohlson O-score 4.63 (model 1-year failure probability 99%). Merton distance-to-default 6.65 σ (model default probability 0.0%).
What works in Ortin Global Limited's favour?
Strong current ratio (1.60).
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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- Mangalam Drugs & Organics Limited (MANGALAM)Very weak 90/100
- Lasa Supergenerics Limited (LASA)Very weak 82/100
- Zota Health Care Limited (ZOTA)Very weak 72/100
- OneSource Specialty Pharma Limited (ONESOURCE)Weak 51/100
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.