A Study on the Financial Health of Oil and Gas Indices in India

India is one of the major drivers of global oil consumption, about 25%; it is crucial to assess the financial health of its oil and gas companies to understand their capacity to meet growing demand and sustainable long-term growth. This study investigates the financial stability and the likelihood of bankruptcy in oil and gas sector companies in India. The research adopts a quantitative approach by analyzing secondary data from financial statements to identify the potential financial health and distress of selected companies. Financial tools such as profitability and operational ratios, Piotroski’s F-Score, and the Altman Z-Score have been taken for the analysis. The findings of the study corroborate the previous research findings, which affirm the predictive accuracy of Altman Z score and Piotroski’s F score in assessing the financial health of corporates and also highlighting the resource allocation and capacity utilization of the corporates. The study helps in providing valuable insights for investors, corporate managers, and policymakers. The study sheds light on the stability and sustainability of oil and gas firms, offering a robust methodology for assessing financial risk and performance, determining whether the financial structure is in a sound manner, and knowing whether there is a chance of bankruptcy in the near future.