Red Flag Stocks in India (Sep 2026): Lowest Piotroski Scores

Indian stocks above ₹5,000 Cr scoring 0–3 on the Piotroski F-Score — weak profitability or deteriorating leverage. A caution flag for deeper analysis.

For investors researching red flag stocks India Piotroski, this screen highlights 15 Indian securities with Piotroski F-Scores of just 1/9 or 2/9 as of 15 Sep 2026. Such low scores can point to weak profitability, worsening leverage or declining operating efficiency, although individual metrics—including revenue growth of 134.62% at FACT and free cash flow of ₹51,854 Cr at Reliance Industries—show why deeper analysis remains essential.

Methodology

How This List Was Generated
Screened 15 stocks from the InvestSights screening dataset (6,000+ securities in the screening dataset).
Criteria: Stocks scoring 0-3 on Piotroski's F-Score — indicating weak profitability, deteriorating leverage, or negative operating efficiency. Not a sell signal, but a caution flag requiring deeper analysis.
Screen these stocks yourself — investsights.in/screener

The Piotroski F-Score runs from 0 to 9, with this screen limited to the weak 0-3 range. All 15 securities below have scores of either 1/9 or 2/9 and are presented in the supplied ranking order.

Summary Table

Individual Stock Analysis

1. Swiggy Limited (SWIGGY) — ₹79,738.08 Cr

Swiggy operates in the Consumer Cyclical sector and carries a market capitalisation of ₹79,738.08 Cr. Its 1/9 Piotroski score is accompanied by negative ROCE of -21.85%, ROE of -22.68% and OPM of -19.29%. The principal cash-flow concern is FCF of ₹-3,571 Cr, while PAT growth was -33.28%. Revenue nevertheless grew 51.4%, making the contrast between expansion and profitability an important issue to investigate.

🔍 Full Analysis — investsights.in/stock/SWIGGY

2. The Fertilisers And Chemicals Travancore Limited (FACT) — ₹47,501.55 Cr

FACT is a fertilisers and chemicals company in the Basic Materials sector, with a market capitalisation of ₹47,501.55 Cr. Its Piotroski score is 1/9, while ROE is -2.93% and OPM is only 0.59%. Leverage is a major review point because D/E stands at 2.95 and FCF is ₹-907.09 Cr. Revenue growth of 134.62% contrasts sharply with PAT growth of -196.04%, indicating that top-line growth did not translate into earnings growth.

🔍 Full Analysis — investsights.in/stock/FACT

3. Ola Electric Mobility Limited (OLAELEC) — ₹10,541.16 Cr

Ola Electric Mobility operates in electric mobility within the Consumer Cyclical sector and has a market capitalisation of ₹10,541.16 Cr. Its 1/9 score sits alongside ROCE of -33.51%, ROE of -54.7% and OPM of -73.46%. Revenue growth was -50.09%, while FCF remained negative at ₹-1,429 Cr. PAT growth of 19.46% provides a contrasting data point, but the company still reports a negative P/E of -5.49x.

🔍 Full Analysis — investsights.in/stock/OLAELEC

4. Aditya Birla Fashion and Retail Limited (ABFRL) — ₹8,159.27 Cr

Aditya Birla Fashion and Retail operates in fashion retail within the Consumer Cyclical sector and has a market capitalisation of ₹8,159.27 Cr. Its Piotroski score is 1/9, with ROCE at -5.01%, ROE at -13.29% and OPM at -7.98%. PAT growth of -106.45% and FCF of ₹-481.11 Cr are the primary financial caution points. Revenue still grew 10.85%, while D/E of 1.06 adds a leverage consideration.

🔍 Full Analysis — investsights.in/stock/ABFRL

5. Tejas Networks Limited (TEJASNET) — ₹7,460.3 Cr

Tejas Networks operates in the Technology sector and has a market capitalisation of ₹7,460.3 Cr. Its 1/9 Piotroski score is supported by weak operating figures, including ROCE of -26.49%, ROE of -31.01% and OPM of -87.61%. Revenue growth was -87.64% and PAT growth was -303.55%, while FCF stood at ₹-348.94 Cr. D/E of 1.43 and a management credibility score of 48/100 require additional scrutiny.

🔍 Full Analysis — investsights.in/stock/TEJASNET

6. Reliance Industries Limited (RELIANCE) — ₹18,93,463.57 Cr

Reliance Industries operates in the Energy sector and is the largest company on this list by market capitalisation at ₹18,93,463.57 Cr. Despite positive ROCE of 7.41%, ROE of 8.98% and OPM of 11.47%, its Piotroski score is only 2/9. The company reported revenue growth of 9.59%, PAT growth of 15.98% and positive FCF of ₹51,854 Cr, creating a notable contrast with the weak composite score. A management credibility score of 32/100 is an additional data point for investors to examine.

🔍 Full Analysis — investsights.in/stock/RELIANCE

7. InterGlobe Aviation Limited (INDIGO) — ₹1,86,177.26 Cr

InterGlobe Aviation operates in the airline business within the Industrials sector and has a market capitalisation of ₹1,86,177.26 Cr. Its Piotroski score is 2/9, while ROE is -34.31% and PAT growth is -132.95%. D/E of 11.15 is the highest leverage figure among the 15 securities in this screen. Positive FCF of ₹22,536.3 Cr and OPM of 11.95% show that the low score should be assessed alongside cash generation and sector-specific financing structures.

🔍 Full Analysis — investsights.in/stock/INDIGO

8. Tata Motors Passenger Vehicles Limited (TMPV) — ₹1,43,003.29 Cr

Tata Motors Passenger Vehicles operates in passenger mobility within the Consumer Cyclical sector and has a market capitalisation of ₹1,43,003.29 Cr. Its Piotroski score is 2/9, with ROCE at -14.39% and OPM at -9.4%. Revenue growth was -24.18%, while FCF was deeply negative at ₹-23,241 Cr. ROE of 73.52% and PAT growth of 196.05% move in the opposite direction, while the available Altman Z-Score is 1.30.

🔍 Full Analysis — investsights.in/stock/TMPV

9. Havells India Limited (HAVELLS) — ₹88,035.5 Cr

Havells India operates in the Industrials sector and has a market capitalisation of ₹88,035.5 Cr. Its Piotroski score is 2/9 even though ROCE is 17.41%, ROE is 17.88% and PAT growth is 14.83%. The stock trades at a P/E of 44.00x, while FCF is positive at ₹87.54 Cr. Investors examining the low composite score should also note the management credibility assessment of 38/100.

🔍 Full Analysis — investsights.in/stock/HAVELLS

10. Patanjali Foods Limited (PATANJALI) — ₹55,417.77 Cr

Patanjali Foods operates in the Consumer Defensive sector and has a market capitalisation of ₹55,417.77 Cr. Its Piotroski score is 2/9 despite revenue growth of 17.67% and PAT growth of 39.5%. The key cash-flow concern is FCF of ₹-1,395.46 Cr, while OPM is 3.75%. D/E remains at 0.21, and the stock trades at a P/E of 27.56x.

🔍 Full Analysis — investsights.in/stock/PATANJALI

11. Voltas Limited (VOLTAS) — ₹51,879.42 Cr

Voltas operates in cooling products and industrial activities within the Industrials sector, with a market capitalisation of ₹51,879.42 Cr. Its Piotroski score is 2/9, while revenue growth was -7.58% and PAT growth was -55.33%. FCF was negative at ₹-74.5 Cr, and OPM stood at 3.95%. The P/E of 112.04x adds a valuation consideration when assessed against ROE of 5.9%.

🔍 Full Analysis — investsights.in/stock/VOLTAS

12. Cochin Shipyard Limited (COCHINSHIP) — ₹38,980.68 Cr

Cochin Shipyard operates in shipbuilding within the Industrials sector and has a market capitalisation of ₹38,980.68 Cr. Its Piotroski score is 2/9, with PAT growth of -13.37% and FCF of ₹-1,332.14 Cr. The operating picture is more positive, with ROCE of 10.41%, ROE of 12.2% and OPM of 13.57%. The stock’s P/E of 43.80x should therefore be considered alongside revenue growth of 4.19%.

🔍 Full Analysis — investsights.in/stock/COCHINSHIP

13. Godrej Industries Limited (GODREJIND) — ₹33,764.69 Cr

Godrej Industries is classified in the Industrials sector and has a market capitalisation of ₹33,764.69 Cr. Its 2/9 Piotroski score accompanies modest ROCE of 3.79% and OPM of 7.83%. The major balance-sheet and cash-flow flags are D/E of 4.61 and FCF of ₹-12,855.35 Cr. PAT growth was nevertheless positive at 26.41%, compared with revenue growth of 5.97%.

🔍 Full Analysis — investsights.in/stock/GODREJIND

14. MINDSPACE BUSINESS P REIT (MINDSPACE-RR) — ₹31,181.41 Cr

Mindspace Business P REIT operates in the Real Estate sector and has a market capitalisation of ₹31,181.41 Cr. Its Piotroski score is 2/9, with ROCE of 4.32% and ROE of 4.33%. FCF was negative at ₹-145.64 Cr, while D/E stood at 0.86. Revenue growth of 22.86%, PAT growth of 36.87%, OPM of 37.17% and dividend yield of 5.5% illustrate why REIT-specific accounting and distribution structures need separate evaluation.

🔍 Full Analysis — investsights.in/stock/MINDSPACE-RR

15. Tata Elxsi Limited (TATAELXSI) — ₹28,195.07 Cr

Tata Elxsi provides technology-oriented design and engineering services within the Technology sector and has a market capitalisation of ₹28,195.07 Cr. Its Piotroski score is 2/9 despite ROCE of 24.18%, ROE of 20.66% and OPM of 20.63%. The weaker data points are revenue growth of only 0.76% and PAT growth of -19.94%. Positive FCF of ₹777.26 Cr and low D/E of 0.05 show that the composite score should not be interpreted in isolation.

🔍 Full Analysis — investsights.in/stock/TATAELXSI

What This List Doesn’t Tell You

This red flag stocks India Piotroski screen is backward-looking because the 15 companies are assessed from financial data available as of 15 Sep 2026. A 2/9 score can coexist with positive FCF of ₹51,854 Cr at Reliance Industries or ROCE of 24.18% at Tata Elxsi, demonstrating that a single composite score does not capture every financial nuance.

Sector structures also matter: InterGlobe Aviation has D/E of 11.15, while Mindspace Business P REIT has a dividend yield of 5.5% and OPM of 37.17%. Market conditions, accounting classifications and one-off changes can therefore affect the nine-component Piotroski framework differently across sectors.

How to Use This List

Use this red flag stocks India Piotroski list as a starting point for research rather than as a list of investment actions. For each of the 15 securities, examine at least the reported profitability, leverage, cash flow and growth figures—for example, Tejas Networks’ OPM of -87.61% versus Tata Elxsi’s OPM of 20.63%—before forming a view.

Where the figures conflict, investigate the underlying financial statements and management explanations: Tata Motors Passenger Vehicles combines PAT growth of 196.05% with FCF of ₹-23,241 Cr, while Reliance Industries combines a 2/9 score with positive FCF of ₹51,854 Cr.

🔍 Screen stocks yourself — investsights.in/screener
🔬 Check forensic health — investsights.in/stock/SYMBOL?tab=forensic
🎙️ Read management commentary — investsights.in/stock/SYMBOL?tab=concall

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 as of the most recent screener refresh on InvestSights.

Related: All curated stock lists · Stock screener · Methodology & data sourcing

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.