Zenith Drugs (NSE:ZENITHDRUG) Debt-to-EBITDA : 3.00 (As of Mar. 2026) — 13% Above Median

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NSE:ZENITHDRUG Zenith Drugs Ltd NSE:ZENITHDRUG
36 GF Score
Price ₹44.35
! 7 Warning Signs
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What is Zenith Drugs Debt-to-EBITDA?

Zenith Drugs NSE:ZENITHDRUG +7.65% 36 Debt-to-EBITDA is 3.00 as of Mar. 2026, which is 13% above its 10-year median of 2.66. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 36/100. The stock has 7 warning signs investors should review. Among 678 Drug Manufacturers companies, Zenith Drugs ranks worse than 70.06% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Zenith Drugs's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹350 Mil. Zenith Drugs's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹201 Mil. Zenith Drugs's annualized EBITDA for the quarter that ended in Mar. 2026 was ₹183 Mil. Zenith Drugs's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 3.00.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Zenith Drugs's Debt-to-EBITDA or its related term are showing as below:

NSE:ZENITHDRUG' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.44   Med: 2.66   Max: 3.23
Current: 3.23

During the past 6 years, the highest Debt-to-EBITDA Ratio of Zenith Drugs was 3.23. The lowest was 1.44. And the median was 2.66.

NSE:ZENITHDRUG's Debt-to-EBITDA is ranked worse than
70.06% of 678 companies
in the Drug Manufacturers industry
Industry Median: 1.64 vs NSE:ZENITHDRUG: 3.23

Zenith Drugs  (NSE:ZENITHDRUG) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Zenith Drugs Debt-to-EBITDA Related Terms


Zenith Drugs Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Zenith Drugs's Debt-to-EBITDA can be seen below:

* 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.

Zenith Drugs Debt-to-EBITDA Chart

Zenith Drugs Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial 2.45 2.87 1.44 3.05 3.23

Zenith Drugs Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only 1.71 0.00 2.93 3.30 3.00

NSE:ZENITHDRUG vs ZTS: Debt-to-EBITDA Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Zenith Drugs's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


Zenith Drugs Debt-to-EBITDA vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Zenith Drugs's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Zenith Drugs's Debt-to-EBITDA falls into.


NSE:ZENITHDRUG
36GF Score
Zenith Drugs Ltd NSE:ZENITHDRUG
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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Zenith Drugs Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Zenith Drugs's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(349.905 + 201.147) / 170.465
=3.23

Zenith Drugs's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(349.905 + 201.147) / 183.486
=3.00

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.00 mean?
Zenith Drugs (NSE:ZENITHDRUG) has a Debt-to-EBITDA of 3.00 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zenith Drugs. This is 13% above median its historical median of 2.66. Over the past decade, Zenith Drugs' Debt-to-EBITDA has ranged from 1.44 to 3.23. According to the industry distribution chart, Zenith Drugs ranks #475 out of 678 companies in the Drug Manufacturers industry, placing it in the top 70.1%.
Is Zenith Drugs' Debt-to-EBITDA too high?
Zenith Drugs' current Debt-to-EBITDA of 3.00 is 13% above median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 1.44 to a high of 3.23. The Drug Manufacturers industry median Debt-to-EBITDA is 1.64. Zenith Drugs' value of 3.00 is 82.9% above this industry median. Based on the distribution chart, Zenith Drugs ranks #475 out of 678 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zenith Drugs has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' Debt-to-EBITDA compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zenith Drugs ranks #475 out of 678 companies for Debt-to-EBITDA. This places Zenith Drugs in the lower half of its industry. The industry median Debt-to-EBITDA is 1.64. Zenith Drugs' value of 3.00 is 82.9% above this benchmark. Historically, Zenith Drugs' own Debt-to-EBITDA has ranged from 1.44 to 3.23 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 1.64, Zenith Drugs has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.64, based on 678 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zenith Drugs's current Debt-to-EBITDA of 3.00 is 82.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Zenith Drugs. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Drugs's current Debt-to-EBITDA is 3.00, which is 13% above median its own 10-year median of 2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Drugs stock overvalued right now?
Zenith Drugs (NSE:ZENITHDRUG) has a current Debt-to-EBITDA of 3.00. The current Debt-to-EBITDA is 3.00, which is 13% above median its 10-year median of 2.66 and 82.9% above the Drug Manufacturers industry median of 1.64. Zenith Drugs' overall GF Score™ is 36/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Zenith Drugs (NSE:ZENITHDRUG), the current Debt-to-EBITDA is 3.00 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.

Zenith Drugs Business Description

Address K. No. 72/5, Village Muradpura, Depalpur, Indore, MP, IND, 453001
Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, Creams, Gels, Capsules, and Tablets. It is also into Generic Medicines.
36GF Score

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

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