Aarti Pharmalabs (NSE:AARTIPHARM) Effective Interest Rate on Debt %: 8.94% (As of Mar. 2026)

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NSE:AARTIPHARM Aarti Pharmalabs Ltd NSE:AARTIPHARM
50 GF Score
Price ₹717.40
GF Value ₹644.61
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Aarti Pharmalabs Effective Interest Rate on Debt %?

Aarti Pharmalabs NSE:AARTIPHARM -0.12% 50 Effective Interest Rate on Debt % is 8.94% as of Mar. 2026. GuruFocus rates NSE:AARTIPHARM with a GF Score™ of 50/100 and a GF Value™ of ₹644.61 (Modestly Overvalued). 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. Aarti Pharmalabs's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₹675 Mil. Aarti Pharmalabs's average total debt for the quarter that ended in Mar. 2026 was ₹7,544 Mil. Therefore, Aarti Pharmalabs's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 8.94%.


Aarti Pharmalabs  (NSE:AARTIPHARM) Effective Interest Rate on Debt % Explanation

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


Aarti Pharmalabs Effective Interest Rate on Debt % Related Terms


Aarti Pharmalabs Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Aarti Pharmalabs'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.

Aarti Pharmalabs Effective Interest Rate on Debt % Chart

Aarti Pharmalabs Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 0.20 7.56 6.88 7.62 7.98

Aarti Pharmalabs Quarterly Data
Mar21 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 6.26 6.46 6.48 7.64 8.94

NSE:AARTIPHARM vs ZTS, UTHR: Effective Interest Rate on Debt % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs'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.


Aarti Pharmalabs Effective Interest Rate on Debt % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's Effective Interest Rate on Debt % distribution charts can be found below:

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


NSE:AARTIPHARM
50GF Score
Aarti Pharmalabs Ltd NSE:AARTIPHARM
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Aarti Pharmalabs Effective Interest Rate on Debt % Calculation

Aarti Pharmalabs'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  *  -469.028/( (4208.179+7543.613)/ 2 )
=-1  *  -469.028/5875.896
=7.98 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1229.272 + 2978.907
=4208.179

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2379.874 + 5163.739
=7543.613

Aarti Pharmalabs'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  *  -674.52/( (0+7543.613)/ 1 )
=-1  *  -674.52/7543.613
=8.94 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2379.874 + 5163.739
=7543.613

* 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 8.94% mean?
Aarti Pharmalabs (NSE:AARTIPHARM) has a Effective Interest Rate on Debt % of 8.94% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Aarti Pharmalabs and its competitors.
Is Aarti Pharmalabs' Effective Interest Rate on Debt % too high?
Aarti Pharmalabs' current Effective Interest Rate on Debt % is 8.94%. Overall, Aarti Pharmalabs has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Pharmalabs' Effective Interest Rate on Debt % compare to ZTS and UTHR?
Aarti Pharmalabs' Effective Interest Rate on Debt % of 8.94% can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Effective Interest Rate on Debt % depends on the Drug Manufacturers 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 Aarti Pharmalabs and its competitors. Aarti Pharmalabs's current Effective Interest Rate on Debt % is 8.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Pharmalabs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Pharmalabs (NSE:AARTIPHARM) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹644.61, compared to a current price of ₹717.40 — trading 11.3% above its estimated fair value. The current Effective Interest Rate on Debt % is 8.94%. Aarti Pharmalabs' overall GF Score™ is 50/100 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 Aarti Pharmalabs (NSE:AARTIPHARM), the current Effective Interest Rate on Debt % is 8.94% 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 Aarti Pharmalabs (NSE:AARTIPHARM) Overvalued in 2026?

Based on GuruFocus' analysis, Aarti Pharmalabs stock appears to be overvalued. The current stock price of ₹717.40 is trading 11.3% above its estimated GF Value™ of ₹644.61. GuruFocus considers Aarti Pharmalabs to be Modestly Overvalued.

Key valuation signals for NSE:AARTIPHARM:

  • Effective Interest Rate on Debt %: 8.94%
  • GF Value™: ₹644.61 vs. price of ₹717.40 (11.3% above fair value)
  • GF Score™: 50/100 with 3 warning signs

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


Aarti Pharmalabs Business Description

Other Exchanges 543748:India
Address Mulund Goregaon Link Road, 204, 2nd Floor, Udyog Kshetra, Mulund West, Mumbai, MH, IND, 400080
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. The company manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, acids, and xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline in India. It also offers Contract Development and Manufacturing Services (CDMS) for drug substance (NCE, RSM, Intermediates) projects. Geographically, the company generates maximum revenue from its customers located outside India.
50GF Score

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

₹717.40
Price
₹644.61
GF Value