IL&FS Engineering and Construction Co (NSE:IL&FSENGG) Financial Strength: 1 (As of Mar. 2026) — 50% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NSE:IL&FSENGG IL&FS Engineering and Construction Co Ltd NSE:IL&FSENGG
41 GF Score
Price ₹36.86
GF Value ₹19.44
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is IL&FS Engineering and Construction Co Financial Strength?

IL&FS Engineering and Construction Co NSE:IL&FSENGG +3.77% 41 Financial Strength is 1 as of Mar. 2026, which is 50% below its 10-year median of 2.00. GuruFocus rates NSE:IL&FSENGG with a GF Score™ of 41/100 and a GF Value™ of ₹19.44 (Significantly Overvalued). The stock has 9 warning signs investors should review.

IL&FS Engineering and Construction Co has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

IL&FS Engineering and Construction Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

IL&FS Engineering and Construction Co did not have earnings to cover the interest expense. IL&FS Engineering and Construction Co's debt to revenue ratio for the quarter that ended in Mar. 2026 was 22.41. As of today, IL&FS Engineering and Construction Co's Altman Z-Score is -5.77.


IL&FS Engineering and Construction Co  (NSE:IL&FSENGG) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

IL&FS Engineering and Construction Co has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


IL&FS Engineering and Construction Co Financial Strength Related Terms


NSE:IL&FSENGG vs PWR, FIX, EME: Financial Strength Comparison

For the Engineering & Construction subindustry, IL&FS Engineering and Construction Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


IL&FS Engineering and Construction Co Financial Strength vs Construction Industry

For the Construction industry and Industrials sector, IL&FS Engineering and Construction Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where IL&FS Engineering and Construction Co's Financial Strength falls into.


NSE:IL&FSENGG
41GF Score
IL&FS Engineering and Construction Co Ltd NSE:IL&FSENGG
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

IL&FS Engineering and Construction Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

IL&FS Engineering and Construction Co's Interest Expense for the months ended in Mar. 2026 was ₹-5 Mil. Its Operating Income for the months ended in Mar. 2026 was ₹-16 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹31 Mil.

IL&FS Engineering and Construction Co's Interest Coverage for the quarter that ended in Mar. 2026 is

IL&FS Engineering and Construction Co did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

IL&FS Engineering and Construction Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(26686.4 + 30.8) / 1192.4
=22.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

IL&FS Engineering and Construction Co has a Z-score of -5.77, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -5.77 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 1 mean?
IL&FS Engineering and Construction Co (NSE:IL&FSENGG) has a Financial Strength of 1 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on IL&FS Engineering and Construction Co and its competitors. This is 50% below median its historical median of 2.00. Over the past decade, IL&FS Engineering and Construction Co's Financial Strength has ranged from 1.00 to 6.00.
Is IL&FS Engineering and Construction Co's Financial Strength too high?
IL&FS Engineering and Construction Co's current Financial Strength of 1 is 50% below median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 6.00. Overall, IL&FS Engineering and Construction Co has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IL&FS Engineering and Construction Co's Financial Strength compare to PWR and FIX?
IL&FS Engineering and Construction Co's Financial Strength of 1 can be compared against companies in the Construction industry. Historically, IL&FS Engineering and Construction Co's own Financial Strength has ranged from 1.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on IL&FS Engineering and Construction Co and its competitors. IL&FS Engineering and Construction Co's current Financial Strength is 1, which is 50% below median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IL&FS Engineering and Construction Co stock overvalued right now?
Based on GuruFocus' analysis, IL&FS Engineering and Construction Co (NSE:IL&FSENGG) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹19.44, compared to a current price of ₹36.86 — trading 89.6% above its estimated fair value. The current Financial Strength is 1, which is 50% below median its 10-year median of 2.00. IL&FS Engineering and Construction Co's overall GF Score™ is 41/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For IL&FS Engineering and Construction Co (NSE:IL&FSENGG), the current Financial Strength is 1 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is IL&FS Engineering and Construction Co (NSE:IL&FSENGG) Overvalued in 2026?

Based on GuruFocus' analysis, IL&FS Engineering and Construction Co stock appears to be overvalued. The current stock price of ₹36.86 is trading 89.6% above its estimated GF Value™ of ₹19.44. GuruFocus considers IL&FS Engineering and Construction Co to be Significantly Overvalued.

Key valuation signals for NSE:IL&FSENGG:

  • Financial Strength: 1 (50% below median its 10-year median of 2.00)
  • GF Value™: ₹19.44 vs. price of ₹36.86 (89.6% above fair value)
  • GF Score™: 41/100 with 9 warning signs

No single metric tells the full story. See the NSE:IL&FSENGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


IL&FS Engineering and Construction Co Business Description

Other Exchanges 532907:India
Address Sanali Info Park, Cyber Towers, Road Number 2, Door Number 8-2-120/113/3, B Block, 1st Floor, Banjara Hills, Hyderabad, TG, IND, 500 034
IL&FS Engineering and Construction Co Ltd is engaged in the construction and infrastructure development business. It is in the business of erection/construction of roads, irrigation projects, buildings, oil and gas infrastructure, railway infrastructure, power plants, power transmission and distribution lines including rural electrification and development of airports. The operating segment of the company is Construction and Infrastructure Development. It derives prime revenue from India.
41GF Score

Get the complete analysis for NSE:IL&FSENGG

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹36.86
Price
₹19.44
GF Value