Indian Pharma & Biotech Companies in Financial Distress (October 2026)
As of 09 October 2026, 12 of 118 Indian Pharma & Biotech companies analysed (10%) show financial-distress indicators: 6 very weak, 2 weak and 4 on watch. The most common red flags in this sector are operating profit does not cover interest, losses in each of the last 3 years, ohlson o-score signals likely failure and cash runway under 12 months.
What drives financial distress in Pharma & Biotech
Drug makers and biotechs. The dominant risk is cash runway — pre-revenue pipelines burn cash and depend on fresh equity; a failed trial or closed funding window can force a filing.
Most common red flags today: Operating profit does not cover interest · Losses in each of the last 3 years · Ohlson O-score signals likely failure · Cash runway under 12 months
Pharma & Biotech companies with distress signals
| # | Ticker | Company / industry | Distress score | Band | Ohlson PD | Merton PD | From 52w high | Key indicators | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | KREBSBIO | Krebs Biochemicals & Industries Limited Drug Manufacturers - Specialty & Generic |
Very weak | 100% | 16.7% | -25% | Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months |
Details → | |
| 2 | VIVIMEDLAB | Vivimed Labs Limited Drug Manufacturers - Specialty & Generic |
Very weak | 100% | 34.2% | -75% | Liabilities exceed assets (negative equity)Operating profit does not cover interestMarket-implied default probability >20% |
Details → | |
| 3 | MANGALAM | Mangalam Drugs & Organics Limited Drug Manufacturers - Specialty & Generic |
Very weak | 96% | 73.1% | -56% | Operating profit does not cover interestMarket-implied default probability >20%Material debt with no EBITDA |
Details → | |
| 4 | LASA | Lasa Supergenerics Limited Drug Manufacturers - Specialty & Generic |
Very weak | 89% | 2.8% | -58% | Operating profit does not cover interestSevere working-capital shortfallLosses in each of the last 3 years |
Details → | |
| 5 | ORTINGLOBE | Ortin Global Limited Drug Manufacturers - Specialty & Generic |
Very weak | 99% | 0.0% | -25% | Operating profit does not cover interestLosses in each of the last 3 yearsRevenue collapse |
Details → | |
| 6 | ZOTA | Zota Health Care Limited Biotechnology |
Very weak | 59% | 0.0% | -20% | Operating profit does not cover interestCash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 7 | ONESOURCE | OneSource Specialty Pharma Limited Biotechnology |
Weak | 28% | 0.0% | -19% | Operating profit does not cover interestLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 8 | SUVEN | Suven Life Sciences Limited Drug Manufacturers - Specialty & Generic |
Weak | 100% | 0.0% | -22% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 9 | VALIANTLAB | Valiant Laboratories Limited Drug Manufacturers - Specialty & Generic |
Watch | 50% | 0.0% | -4% | Operating profit does not cover interestCash runway under 12 monthsOhlson O-score signals likely failure |
Details → | |
| 10 | SOLARA | Solara Active Pharma Sciences Limited Drug Manufacturers - Specialty & Generic |
Watch | 57% | 0.0% | -13% | Operating profit does not cover interestOhlson O-score signals likely failureCurrent liabilities exceed current assets |
Details → | |
| 11 | NATCAPSUQ | Natural Capsules Limited Drug Manufacturers - Specialty & Generic |
Watch | 76% | 5.0% | -42% | Operating profit does not cover interestVery high leverageOhlson O-score signals likely failure |
Details → | |
| 12 | LYKALABS | Lyka Labs Limited Biotechnology |
Watch | 83% | 0.0% | -26% | Operating profit does not cover interestOhlson O-score signals likely failureLosses in 2 of the last 3 years |
Details → |
Frequently asked questions
Which Pharma & Biotech companies are in financial distress?
As of 2026-10-09, 12 Indian Pharma & Biotech companies show financial-distress indicators (6 very weak, 2 weak and 4 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 Pharma & Biotech companies are in financial trouble?
12 of 118 analysed (10%); 6 are in the 'Very weak' band.
What are the biggest financial risks for Pharma & Biotech companies?
Drug makers and biotechs. The dominant risk is cash runway — pre-revenue pipelines burn cash and depend on fresh equity; a failed trial or closed funding window can force a filing. Right now the most frequent red flags are operating profit does not cover interest, losses in each of the last 3 years, ohlson o-score signals likely failure and cash runway under 12 months.
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.