Grasim Industries (NSE:GRASIM) Effective Interest Rate on Debt %: 1.62% (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.

NSE:GRASIM Grasim Industries Ltd NSE:GRASIM
83 GF Score
Price ₹3,089.40
GF Value ₹2,783.83
Valuation Modestly Overvalued
! 8 Warning Signs
View Full Analysis

What is Grasim Industries Effective Interest Rate on Debt %?

Grasim Industries NSE:GRASIM -0.76% 83 Effective Interest Rate on Debt % is 1.62% as of Mar. 2026. GuruFocus rates NSE:GRASIM with a GF Score™ of 83/100 and a GF Value™ of ₹2,783.83 (Modestly Overvalued). The stock has 8 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. Grasim Industries's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₹36,884 Mil. Grasim Industries's average total debt for the quarter that ended in Mar. 2026 was ₹2,278,421 Mil. Therefore, Grasim Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 1.62%.


Grasim Industries  (NSE:GRASIM) Effective Interest Rate on Debt % Explanation

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


Grasim Industries Effective Interest Rate on Debt % Related Terms


Grasim Industries Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Grasim 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.

Grasim Industries Effective Interest Rate on Debt % Chart

Grasim 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 1.60 1.41 1.37 1.71 1.66

Grasim 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 1.76 1.75 1.69 1.82 1.62

NSE:GRASIM vs CRH, VMC, MLM: Effective Interest Rate on Debt % Comparison

For the Building Materials subindustry, Grasim 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.


Grasim Industries Effective Interest Rate on Debt % vs Building Materials Industry

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

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


NSE:GRASIM
83GF Score
Grasim Industries Ltd NSE:GRASIM
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Grasim Industries Effective Interest Rate on Debt % Calculation

Grasim 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  *  -34344.8/( (1863145.7+2278420.5)/ 2 )
=-1  *  -34344.8/2070783.1
=1.66 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1260792.2 + 602353.5
=1863145.7

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1591036.4 + 687384.1
=2278420.5

Grasim 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  *  -36884.4/( (0+2278420.5)/ 1 )
=-1  *  -36884.4/2278420.5
=1.62 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1591036.4 + 687384.1
=2278420.5

* 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 1.62% mean?
Grasim Industries (NSE:GRASIM) has a Effective Interest Rate on Debt % of 1.62% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Grasim Industries and its competitors.
Is Grasim Industries' Effective Interest Rate on Debt % too high?
Grasim Industries' current Effective Interest Rate on Debt % is 1.62%. Overall, Grasim Industries has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Grasim Industries' Effective Interest Rate on Debt % compare to CRH and VMC?
Grasim Industries' Effective Interest Rate on Debt % of 1.62% can be compared against companies in the Building Materials 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 Building Materials company?
A good Effective Interest Rate on Debt % depends on the Building Materials 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 Grasim Industries and its competitors. Grasim Industries's current Effective Interest Rate on Debt % is 1.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grasim Industries stock overvalued right now?
Based on GuruFocus' analysis, Grasim Industries (NSE:GRASIM) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹2,783.83, compared to a current price of ₹3,089.40 — trading 11% above its estimated fair value. The current Effective Interest Rate on Debt % is 1.62%. Grasim Industries' overall GF Score™ is 83/100 with 8 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 Grasim Industries (NSE:GRASIM), the current Effective Interest Rate on Debt % is 1.62% 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 Grasim Industries (NSE:GRASIM) Overvalued in 2026?

Based on GuruFocus' analysis, Grasim Industries stock appears to be overvalued. The current stock price of ₹3,089.40 is trading 11% above its estimated GF Value™ of ₹2,783.83. GuruFocus considers Grasim Industries to be Modestly Overvalued.

Key valuation signals for NSE:GRASIM:

  • Effective Interest Rate on Debt %: 1.62%
  • GF Value™: ₹2,783.83 vs. price of ₹3,089.40 (11% above fair value)
  • GF Score™: 83/100 with 8 warning signs

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


Grasim Industries Business Description

Other Exchanges 500300:India
Address Sudam Kalu Ahire Marg, A Wing, 2nd Floor, Aditya Birla Centre, Worli, Mumbai, MH, IND, 400030
Grasim Industries Ltd is a cement and viscose staple fibre (VSF) manufacturing firm based in India. The activities of the group fall under the operating segments of Cellulosic Fibres, Chemicals, Building materials, Financial Services, and Others. It derives key revenue from the Building materials segment which covers products like grey cement, paints, white cement, and allied products. Geographically, the company derives a majority of its revenue from the domestic market and the rest from other countries through exports.
83GF Score

Get the complete analysis for NSE:GRASIM

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

₹3,089.40
Price
₹2,783.83
GF Value