An Assessment of Financial Health and Prediction of Financial Distress in Selected Steel Companies Listed on the National Stock Exchange of India Using Altman's Z-score and Springate's S- Score Models

<title>Abstract</title> <p> Financial health is the ability of a firm to meet its short-term and long-term financial obligations, maintain profitability, and sustain growth. A lack of this ability can lead to financial distress and, ultimately, bankruptcy. In this context, evaluating the financial condition of companies has become critically important for key stakeholders - particularly in capital-intensive industries such as steel. This study aims to assess the financial health and predict the potential financial distress of four prominent steel companies namely JSW Ltd., Tata Steel, SAIL Ltd., and Jindal Steel and Power Ltd. (JSPL) listed on the National Stock Exchange (NSE) of India <bold>,</bold> using predictive models like <bold/> Altman's Z-Score <bold/> and <bold/> Springate's S-Score from the year 2021 to 2025. The findings reveal a mixed—yet predominantly challenging—financial landscape within the selected segment of the Indian steel sector. The study concludes that despite signs of recovery or moderate risk in some firms, operational and liquidity challenges remain widespread across the sector. Strategic interventions are imperative, with a focus on optimizing working capital and improving profitability to ensure long-term stability in this capital-intensive industry. JEL Code : G11 </p>