Altman Z-Score Distress Zone: Indian Stocks Under Balance-Sheet Stress (Sep 2026)

Non-financial Indian stocks above ₹5,000 Cr in the Altman Z″ distress zone (below 1.10) — balance-sheet stress worth monitoring, not a bankruptcy prediction.

Investors searching for altman z score stocks india can use this seven-stock screen to identify companies whose Altman Z″ scores fall below the emerging-market distress-zone threshold of 1.10. The list spans market capitalisations from ₹5,161.59 Cr to ₹40,241.4 Cr, showing that a distress-zone reading is not limited to smaller companies.

How This List Was Generated

Screened 7 stocks from the InvestSights screening dataset (6,000+ securities in the screening dataset).

Criteria: Stocks in the Altman Z-Score distress zone (Z″ < 1.10 on the emerging-market model our score uses). Edward Altman's model flags elevated bankruptcy risk at readings below 1.10. Being in the distress zone does not mean imminent bankruptcy, but signals balance-sheet stress that warrants monitoring.

Banks, NBFCs and other financials are excluded because the manufacturing Z-Score can structurally mislabel a leveraged, deposit-funded balance sheet as distress, making the 1.10 threshold an unsuitable bankruptcy signal for those businesses.

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Altman Z Score Stocks India: Summary Table

The table preserves the supplied ranking from the lowest Altman Z-Score of -21.11 to the highest qualifying score of 1.05.

Individual Stock Analysis

1. Netweb Technologies India Limited (NETWEB) — ₹21,848.14 Cr

Netweb is classified in the Technology sector and has a market capitalisation of ₹21,848.14 Cr. It ranks first because its Altman Z-Score of -21.11 is the lowest reading among the 7 stocks, despite revenue growth of 91.02%, PAT growth of 79.79% and free cash flow of ₹155.78 Cr. Its operating indicators include ROCE of 36.71%, ROE of 28.46% and an operating profit margin of 12.39%, illustrating why the Z-Score should be assessed alongside the underlying financial statements rather than in isolation. The key monitoring points are a Piotroski score of 4/9, debt-to-equity of 0.39 and a P/E valuation of 85.37x, while management credibility is recorded at 81/100.

🔍 Full Analysis — investsights.in/stock/NETWEB

2. Mahindra Lifespace Developers Limited (MAHLIFE) — ₹7,780.64 Cr

Mahindra Lifespace operates in the Real Estate sector and carries a market capitalisation of ₹7,780.64 Cr. Its Altman Z-Score of 0.07 is substantially below the 1.10 distress-zone cutoff, while ROCE is -3.98% and the operating profit margin is -12.34%. Revenue growth of 216.52% and PAT growth of 386.43% provide a sharply contrasting growth picture, but free cash flow remains negative at ₹-485.56 Cr. Investors monitoring the balance sheet can compare debt-to-equity of 0.18, a Piotroski score of 4/9, ROE of 8.22% and management credibility of 72/100.

🔍 Full Analysis — investsights.in/stock/MAHLIFE

3. IRB Infrastructure Developers Limited (IRB) — ₹24,904.84 Cr

IRB is an infrastructure developer classified in the Industrials sector, with a market capitalisation of ₹24,904.84 Cr. Its Altman Z-Score of 0.75 places it below the 1.10 threshold, while debt-to-equity stands at 0.96. The key operating risks are revenue contraction of -7.67%, PAT contraction of -86.88%, ROCE of 3.4% and ROE of 4.06%. Offsetting indicators within the supplied data include an operating profit margin of 26.25%, free cash flow of ₹1,365.97 Cr and a Piotroski score of 6/9.

🔍 Full Analysis — investsights.in/stock/IRB

4. Sunteck Realty Limited (SUNTECK) — ₹5,918.16 Cr

Sunteck Realty is a Real Estate company with a market capitalisation of ₹5,918.16 Cr. Its Altman Z-Score of 0.96 is below the 1.10 cutoff, while its Piotroski score is 4/9. Revenue increased 36.98% and PAT increased 35.96%, accompanied by an operating profit margin of 28.68%, but free cash flow was negative at ₹-637.62 Cr. The financial profile also includes debt-to-equity of 0.21, ROCE of 6.73%, ROE of 5.66% and management credibility of 72/100.

🔍 Full Analysis — investsights.in/stock/SUNTECK

5. Embassy Office Parks REIT (EMBASSY) — ₹40,241.4 Cr

Embassy Office Parks is a Real Estate investment trust with the list’s largest market capitalisation of ₹40,241.4 Cr. Its Altman Z-Score of 0.98 remains below 1.10, while debt-to-equity is 1.08 and ROE is 1.63%. Revenue growth was 16.84%, but PAT growth was -79.16%, creating a divergence between the top-line and bottom-line readings. Its other supplied metrics include free cash flow of ₹355.46 Cr, an operating profit margin of 49.97%, dividend yield of 5.82%, P/E of 117.69x and a Piotroski score of 7/9.

🔍 Full Analysis — investsights.in/stock/EMBASSY

6. NLC India Limited (NLCINDIA) — ₹36,052.55 Cr

NLC India is classified in the Utilities sector and has a market capitalisation of ₹36,052.55 Cr. Its Altman Z-Score of 1.04 is close to, but still below, the 1.10 distress-zone cutoff; debt-to-equity is 1.32. The company recorded revenue growth of 14.44% and PAT growth of 34.37%, alongside ROE of 16.72% and an operating profit margin of 18.35%. The main cash-flow flag is free cash flow of ₹-4,671.78 Cr, while the remaining supplied indicators include ROCE of 5.92%, a Piotroski score of 4/9 and promoter ownership of 69.47%.

🔍 Full Analysis — investsights.in/stock/NLCINDIA

7. Shree Renuka Sugars Limited (RENUKA) — ₹5,161.59 Cr

Shree Renuka Sugars is a sugar business classified in the Consumer Defensive sector, with a market capitalisation of ₹5,161.59 Cr. Its Altman Z-Score of 1.05 is narrowly below the 1.10 threshold, while its reported debt-to-equity ratio is -2.68. Operating stress is visible in revenue growth of -13.41%, PAT growth of -164.21%, ROCE of -7.04%, an operating profit margin of -0.62% and free cash flow of ₹-905.8 Cr. The negative P/E of -7.39x, Piotroski score of 4/9 and dividend yield of 0.0% provide additional figures for assessing the reported financial position.

🔍 Full Analysis — investsights.in/stock/RENUKA

Reading the Screen in Context

This altman z score stocks india screen contains very different financial profiles even though all 7 stocks fall below the same 1.10 cutoff. For example, Netweb combines a Z-Score of -21.11 with ROCE of 36.71%, whereas Shree Renuka Sugars combines a Z-Score of 1.05 with ROCE of -7.04%.

Cash-flow outcomes also vary materially across the list: IRB reports free cash flow of ₹1,365.97 Cr, while NLC India reports ₹-4,671.78 Cr. Piotroski scores range from 4/9 to 7/9, reinforcing that the Z-Score is one quantitative signal rather than a complete assessment of financial quality.

Valuation does not resolve the balance-sheet question on its own: the supplied P/E readings range from -7.39x for Shree Renuka Sugars to 117.69x for Embassy Office Parks REIT. Investors can therefore examine the Z-Score alongside debt-to-equity, free cash flow, returns on capital, earnings growth and the 9-point Piotroski framework.

What This List Doesn’t Tell You

This is a backward-looking 7-stock screen based on data available as of 15 Sep 2026, so it cannot capture financial changes occurring after that date. The single 1.10 threshold also cannot fully reflect sector-specific working-capital cycles, asset structures or cash-flow timing, as illustrated by free cash flow ranging from ₹-4,671.78 Cr to ₹1,365.97 Cr.

The altman z score stocks india screen also does not incorporate future market conditions, refinancing terms or management actions beyond the supplied figures. A stock with a Piotroski score of 7/9 can still have a Z-Score below 1.10, just as a company with revenue growth of 91.02% can record a negative Z-Score of -21.11.

How to Use This List

Treat these 7 names as a starting point for deeper research rather than as a recommendation list. For each company, verify the components behind its Z-Score, compare debt-to-equity readings ranging from -2.68 to 1.32, and examine why free cash flow ranges from ₹-4,671.78 Cr to ₹1,365.97 Cr.

Pay particular attention to companies combining a sub-1.10 Z-Score with negative free cash flow, negative operating margins or contracting PAT. Investors can also compare promoter ownership, which is available from 30.81% to 69.47% for the relevant companies in the supplied data, and FII ownership, which ranges from 2.16% to 43.87% where reported.

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Disclaimer

This list is for informational and educational purposes only. It does not constitute investment advice. Consult a SEBI-registered investment advisor before making investment decisions. Data is as of the most recent screener refresh on InvestSights on 15 Sep 2026.

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InvestSights is an analytics platform and is not SEBI-registered as a Research Analyst or Investment Adviser. All figures are educational, descriptive data — not investment advice. Consult a SEBI-registered adviser before investing.