Hindalco Industries (FRA:HID) Effective Interest Rate on Debt %: 4.20% (As of Mar. 2026)

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.

FRA:HID Hindalco Industries Ltd FRA:HID
74 GF Score
Price €6.30
GF Value €6.49
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Hindalco Industries Effective Interest Rate on Debt %?

Hindalco Industries FRA:HID -0.49% 74 Effective Interest Rate on Debt % is 4.20% as of Mar. 2026. GuruFocus rates FRA:HID with a GF Score™ of 74/100 and a GF Value™ of €6.49 (Fairly Valued). The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Hindalco Industries's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €388 Mil. Hindalco Industries's average total debt for the quarter that ended in Mar. 2026 was €9,241 Mil. Therefore, Hindalco Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.20%.


Hindalco Industries  (FRA:HID) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Hindalco Industries Effective Interest Rate on Debt % Related Terms


Hindalco Industries Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Hindalco Industries's Effective Interest Rate on Debt % 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.

Hindalco Industries Effective Interest Rate on Debt % Chart

Hindalco Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.79 5.92 6.41 5.44 3.82

Hindalco Industries Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.47 4.46 4.29 4.63 4.20

FRA:HID vs AA: Effective Interest Rate on Debt % Comparison

For the Aluminum subindustry, Hindalco Industries's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Hindalco Industries Effective Interest Rate on Debt % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Hindalco Industries's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Hindalco Industries's Effective Interest Rate on Debt % falls into.


FRA:HID
74GF Score
Hindalco Industries Ltd FRA:HID
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hindalco Industries Effective Interest Rate on Debt % Calculation

Hindalco Industries's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -307.35/( (6834.647+9241.104)/ 2 )
=-1  *  -307.35/8037.8755
=3.82 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6183.672 + 650.975
=6834.647

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=7237.922 + 2003.182
=9241.104

Hindalco Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -388.428/( (0+9241.104)/ 1 )
=-1  *  -388.428/9241.104
=4.20 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=7237.922 + 2003.182
=9241.104

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.20% mean?
Hindalco Industries (FRA:HID) has a Effective Interest Rate on Debt % of 4.20% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Hindalco Industries and its competitors.
Is Hindalco Industries' Effective Interest Rate on Debt % too high?
Hindalco Industries' current Effective Interest Rate on Debt % is 4.20%. Overall, Hindalco Industries has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindalco Industries' Effective Interest Rate on Debt % compare to AA?
Hindalco Industries' Effective Interest Rate on Debt % of 4.20% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Metals & Mining company?
A good Effective Interest Rate on Debt % depends on the Metals & Mining industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Hindalco Industries and its competitors. Hindalco Industries's current Effective Interest Rate on Debt % is 4.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindalco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hindalco Industries (FRA:HID) is currently considered Fairly Valued. The stock's GF Value™ is €6.49, compared to a current price of €6.30 — trading 2.9% below its estimated fair value. The current Effective Interest Rate on Debt % is 4.20%. Hindalco Industries' overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Hindalco Industries (FRA:HID), the current Effective Interest Rate on Debt % is 4.20% 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 Hindalco Industries (FRA:HID) Overvalued in 2026?

Based on GuruFocus' analysis, Hindalco Industries stock appears to be undervalued. The current stock price of €6.30 is trading 2.9% below its estimated GF Value™ of €6.49. GuruFocus considers Hindalco Industries to be Fairly Valued.

Key valuation signals for FRA:HID:

  • Effective Interest Rate on Debt %: 4.20%
  • GF Value™: €6.49 vs. price of €6.30 (2.9% below fair value)
  • GF Score™: 74/100 with 3 warning signs

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


Hindalco Industries Business Description

Other Exchanges HINDALCO:India500440:India
Address Pandurang Budhkar Road, Birla Centurion, 6th & 7th Floor, Worli, Mumbai, MH, IND, 400030
Hindalco Industries Ltd extracts raw materials and produces and sells industrial metals in the below segments: Copper, Aluminum Upstream and Aluminium Downstream, Novelis, and all other Segment. The Copper segment purchases raw materials and produces continuous cast copper rods, copper cathodes, sulphuric acid, gold, and silver. The firm hedges its copper and other precious metals costs through futures contracts in an attempt to match commodity price changes between the time it purchases the raw materials and sells the finished products. The Aluminum segment mines bauxite and produces hydrate and alumina, aluminum, and aluminum-based products. The majority of Hindalco's revenue comes from India. The firm is also expanding internationally with sales and operations across the globe.
74GF Score

Get the complete analysis for FRA:HID

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€6.30
Price
€6.49
GF Value