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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. Ashok Leyland's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₹49,624 Mil. Ashok Leyland's average total debt for the quarter that ended in Mar. 2026 was ₹639,357 Mil. Therefore, Ashok Leyland's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 7.76%.
Ashok Leyland (NSE:ASHOKLEY) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Ashok Leyland Effective Interest Rate on Debt % Related Terms
Ashok Leyland Effective Interest Rate on Debt % Historical Data
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The historical data trend for Ashok Leyland'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.
Ashok Leyland Effective Interest Rate on Debt % Chart
NSE:ASHOKLEY vs CAT, DE, PCAR: Effective Interest Rate on Debt % Comparison
For the Farm & Heavy Construction Machinery subindustry, Ashok Leyland'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.
Ashok Leyland Effective Interest Rate on Debt % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Ashok Leyland's Effective Interest Rate on Debt % falls into.
* 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 7.76% mean?
Ashok Leyland (NSE:ASHOKLEY) has a Effective Interest Rate on Debt % of 7.76% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Ashok Leyland and its competitors.
Is Ashok Leyland's Effective Interest Rate on Debt % too high?
Ashok Leyland's current Effective Interest Rate on Debt % is 7.76%. Overall, Ashok Leyland has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's Effective Interest Rate on Debt % compare to CAT and DE?
Ashok Leyland's Effective Interest Rate on Debt % of 7.76% can be compared against companies in the Farm & Heavy Construction Machinery 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 Farm & Heavy Construction Machinery company?
A good Effective Interest Rate on Debt % depends on the Farm & Heavy Construction Machinery 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 Ashok Leyland and its competitors. Ashok Leyland's current Effective Interest Rate on Debt % is 7.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ashok Leyland stock overvalued right now?
Based on GuruFocus' analysis, Ashok Leyland (NSE:ASHOKLEY) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹127.69, compared to a current price of ₹151.07 — trading 18.3% above its estimated fair value. The current Effective Interest Rate on Debt % is 7.76%. Ashok Leyland's overall GF Score™ is 85/100 with 1 warning sign 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 Ashok Leyland (NSE:ASHOKLEY), the current Effective Interest Rate on Debt % is 7.76% 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 Ashok Leyland (NSE:ASHOKLEY) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹151.07 is trading 18.3% above its estimated GF Value™ of ₹127.69.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for NSE:ASHOKLEY:
Effective Interest Rate on Debt %: 7.76%
GF Value™: ₹127.69 vs. price of ₹151.07 (18.3% above fair value)
No single metric tells the full story. See the NSE:ASHOKLEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.
85GF Score
Get the complete analysis for NSE:ASHOKLEY
Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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