INDSWFTLABINDSWFTLAB Forensic Risk Analysis

Pharmaceuticals
Risk ClassWatch
Market CapN/A
Primary DriverBalance Sheet Stress
Flagium AI Risk Score
Early signs of stress detected. Not yet widespread, but initial deterioration is visible.
35 / 100
+23 QoQ
Early Deterioration
Sentinel Insight

Financial profile remains stable for now. Weakness is detected in balance sheet stress. This suggests a building risk profile. Risk is increasing at a faster pace.

80.8th %ile (Sector)Accel: +1 Qtrs
Updated2026-06-02
Market View
₹162.1▼1.27%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Balance Sheet Stress
+18.6 pts
Earnings Quality
+15.0 pts
Stability Adjustment
+1.0 pts
Final Composite Risk35 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 0 → 35 over 12 quarters.

Expected Direction
🚨 Escalate
Primary Deterioration Drivers
  • Inventory Stress
  • Margin Compression
  • Relative Growth Weakness
What to Watch Next Quarter
  • Inventory turnover
  • Operating profit margins
  • Operating cash flow

Active Risk Objects (11)

CriticalHigh
Inventory Stress
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight15/15
MomentumDecaying
Last SignalQ4 FY2025
Inventory growth (991.8%) significantly outpaced revenue growth (-65.9%).

"Inventory overhang is clearing. Stock levels are normalizing as sales momentum returns."

Relative Growth Weakness
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight12/15
MomentumDecaying
Last SignalQ4 FY2025
Revenue growth consistently lags behind sector median (12.8%).

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Margin Compression
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight15/15
MomentumDecaying
Last SignalQ3 FY2025
Operating margin declined by 12.9 bps YoY for two consecutive quarters.

"Operating efficiency is stabilizing. The rate of margin deterioration has slowed."

Industrial Margin Stress
📉 Trend DeteriorationAnnualActive for 5 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
INDSWFTLAB: Raw material costs consumed an additional 31.7% of revenue YoY.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Low Interest Coverage
💧 Liquidity & CoverageQuarterlyActive for 6 Qtrs
More Detail
Impact Weight8/15
MomentumPersistent
Last SignalQ4 FY2026
INDSWFTLAB: Low Interest Coverage Ratio of -3.91x in FY2026 Q4 (Threshold: 2.5x).

"Interest coverage is dangerously low. Even a minor fall in profit could trigger a default."

Profit Collapse
📊 Earnings QualityQuarterlyActive for 4 Qtrs
More Detail
Impact Weight8/15
MomentumPersistent
Last SignalQ4 FY2026
INDSWFTLAB: Net Profit collapsed by 93.2% from FY2025 Q4 to FY2026 Q4.

"Earnings quality is under severe pressure. High accruals suggest potential revenue overstatement."

Negative FCF Streak
⚖️ Governance SignalsAnnualActive for 1 Years
More Detail
Impact Weight6/15
MomentumAccelerating
Last SignalFY2026
INDSWFTLAB: Negative Free Cash Flow for last 3 consecutive years.

"High capital expenditure and low OCF are draining cash. Debt levels may rise sharply."

Cash Conversion Deficit
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight6/15
MomentumAccelerating
Last SignalFY2026
INDSWFTLAB: OCF below Net Profit in 3/3 recent years.

"Cash conversion is dangerously low. Operational cash flow is significantly trailing reported PAT."

Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 3 Years
More Detail
Impact Weight10/15
MomentumPersistent
Last SignalQ4 FY2026
Working capital expansion detected: Receivable days increased by 0.1%.

"Early signs of working capital expansion. Receivable or inventory days are creeping up."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 2 Years
More Detail
Impact Weight10/15
MomentumDecaying
Last SignalQ3 FY2025
Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt servicing metrics have improved recently. The company is actively deleveraging."

Revenue-Debt Divergence
🏛️ Solvency & LeverageAnnualActive for 1 Years
More Detail
Impact Weight6/15
MomentumDecaying
Last SignalFY2025
INDSWFTLAB: Revenue fell 51.5% while Debt rose 144.3% in 2025 vs 2024.

"Debt servicing metrics have improved recently. The company is actively deleveraging."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)10.097.70⚠️ HIGH
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+31.0+47.0📈 CRITICAL
Forensic Benchmark Context: Pharmaceuticals (n=99 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹162.1(-1.27%)
1M Divergence+15.59%
1 Week+19.04%
1 Month+17.86%
6 Months+73.96%
1 Year+97.44%
2 Year+55.05%
3 Year+129.6%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently deteriorating. Recent structural triggers in balance sheet stress suggest a building pressure on the underlying framework. Material forensic traces are visible in core structural metrics, indicating a progressive erosion of structural stability. Strategic vigilance is advised as structural decay is accelerating.

INDSWFTLAB • MARKET STRUCTURE

Stage 2 — Advancing

The company is in a growth phase. Institutional sentiment is highly positive, supported by strong fundamentals and sustained risk reduction.

Stage Transition Prob.98%
Trend QualityStrong
Phase Progression
Phase Progression Score100%
Readiness LabelHigh (Phase Transition Imminent)
Probability of Advancing98%
CoinTree Momentum
Composite Z-Score+1.3236σ
Strong positive momentum leadership
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#167 of 2716
Top 6.15% in momentum strength
Timeframe Sparklines
1W+19.0%
1M+17.9%
6M+74.0%
Weinstein Indicators
150 DMA₹120.14
200 DMA₹115.62
150 DMA Slope+4.4143%Rising
Relative Strength+76.47%Leading
Relative Turnover (RTR)2.1829
ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

This company shows higher risk compared to the Sector Mean (19).
AAREYDRUGSAarey Drugs & Pharmaceuticals Limited
23 Risk
Sector %ile63th
Delta-5
Active Flags20
Accel+0
Balance Sheet Stress

Watch

INDSWFTLABINDSWFTLAB
35 Risk
Sector %ile81th
Delta+23
Active Flags11
Accel+1
Balance Sheet Stress

Watch

AARTIPHARMAarti Pharmalabs Limited
35 Risk
Sector %ile81th
Delta0
Active Flags18
Accel+0
Earnings Quality

Watch

CIPLACipla Limited
48 Risk
Sector %ile99th
Delta+32
Active Flags15
Accel+5
Earnings Quality

Moderate Deterioration

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
00th %ile
VS Sector Median (8.5)
Balance Sheet Stress
0.77.2th %ile
VS Sector Median (8.5)
Competitive Position
10100th %ile
VS Sector Median (8.5)
Growth Sustainability
10100th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Working Capital Expansion

2026

Industrial Margin Stress

2026

Industrial Margin Stress

2026

Industrial Margin Stress

2026

Industrial Margin Stress

2026

Negative FCF Streak

2026

Cash Conversion Deficit

2025

Relative Growth Weakness

2025

Working Capital Expansion

2025

Inventory Stress

2025

Operating Leverage Stress

2025

Relative Growth Weakness

2025

Margin Compression

2025

Margin Compression

2025

Operating Leverage Stress

2025

Working Capital Expansion

2025

Revenue-Debt Divergence

2025

Cash Conversion Deficit

2024

Industrial Margin Stress

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY202668841-6318
FY2025643250-2541
FY20241,326421-18117
FY20231,24148195862