The paper analyses the financial distress in State Road Transport Undertakings (SRTUs). Financial distress is a multidimensional generic term, which is a symptom of fading financial conditions of a business concern. The financial distress in SRTUs is analysed on various aspects and dimensions and discussed through the application of one of the multivariate analysis techniques.

The paper is an attempt to highlight the profitability approach in State Road Transport Undertakings. A case study of two major undertakings i.e. Rajasthan State Road Transport Corporation and Uttar Pradesh State Road Transport Corporation is analyzed.