Indian IT & Software Companies in Financial Distress (October 2026)
As of 09 October 2026, 10 of 119 Indian IT & Software companies analysed (8%) show financial-distress indicators: 4 very weak, 5 weak and 1 on watch. The most common red flags in this sector are losses in each of the last 3 years, cash runway under 12 months, severe working-capital shortfall and operating profit does not cover interest.
What drives financial distress in IT & Software
Software and IT services — cash burn vs runway, revenue declines and dilution. Stock-comp-driven GAAP losses at net-cash firms are discounted.
Most common red flags today: Losses in each of the last 3 years · Cash runway under 12 months · Severe working-capital shortfall · Operating profit does not cover interest
IT & Software companies with distress signals
| # | Ticker | Company / industry | Distress score | Band | Ohlson PD | Merton PD | From 52w high | Key indicators | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | QUINTEGRA | Quintegra Solutions Limited Information Technology Services |
Very weak | 100% | 7.1% | -22% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsSevere working-capital shortfall |
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| 2 | SECURKLOUD | SecureKloud Technologies Limited Software - Application |
Very weak | 100% | 17.8% | -51% | Liabilities exceed assets (negative equity)Severe working-capital shortfallLosses in each of the last 3 years |
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| 3 | GSS | GSS Infotech Limited Information Technology Services |
Very weak | 82% | 91.5% | -62% | Cash runway under 12 monthsMarket-implied default probability >20%Operations consume cash |
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| 4 | SUVIDHAA | Suvidhaa Infoserve Limited Information Technology Services |
Very weak | 95% | 0.0% | -49% | Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse |
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| 5 | HGM | Handson Global Management (HGM) Limited Information Technology Services |
Weak | 97% | 2.3% | -50% | Operating profit does not cover interestVery high leverageOperations consume cash |
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| 6 | RPSGVENT | RPSG Ventures Limited Information Technology Services |
Weak | 84% | 10.2% | -22% | Severe working-capital shortfallLosses in each of the last 3 yearsVery high leverage |
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| 7 | XELPMOC | Xelpmoc Design and Tech Limited Information Technology Services |
Weak | 64% | 0.0% | -38% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
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| 8 | RSSOFTWARE | R S Software (India) Limited Information Technology Services |
Weak | 97% | 0.1% | -63% | Operating profit does not cover interestRevenue collapseOhlson O-score signals likely failure |
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| 9 | CURAA | Cura Technologies Limited Software - Application |
Weak | 99% | 0.0% | -69% | Operating profit does not cover interestSevere working-capital shortfallLosses in each of the last 3 years |
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| 10 | VIRINCHI | Virinchi Limited Software - Application |
Watch | 63% | 68.4% | -58% | Operating profit does not cover interestMarket-implied default probability >20%Ohlson O-score signals likely failure |
Details → |
Frequently asked questions
Which IT & Software companies are in financial distress?
As of 2026-10-09, 10 Indian IT & Software companies show financial-distress indicators (4 very weak, 5 weak and 1 on watch). The table on this page ranks them by score with the indicators behind each one. These are statistical signals, not predictions that any company will file.
How many IT & Software companies are in financial trouble?
10 of 119 analysed (8%); 4 are in the 'Very weak' band.
What are the biggest financial risks for IT & Software companies?
Software and IT services — cash burn vs runway, revenue declines and dilution. Stock-comp-driven GAAP losses at net-cash firms are discounted. Right now the most frequent red flags are losses in each of the last 3 years, cash runway under 12 months, severe working-capital shortfall and operating profit does not cover interest.
What happens to shareholders if a company becomes insolvent?
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.