Hindustan Construction Co (NSE:HCC) Effective Interest Rate on Debt %: 41.07% (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:HCC Hindustan Construction Co Ltd NSE:HCC
68 GF Score
Price ₹21.44
GF Value ₹16.20
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Hindustan Construction Co Effective Interest Rate on Debt %?

Hindustan Construction Co NSE:HCC +2.39% 68 Effective Interest Rate on Debt % is 41.07% as of Mar. 2026. GuruFocus rates NSE:HCC with a GF Score™ of 68/100 and a GF Value™ of ₹16.20 (Significantly 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. Hindustan Construction Co's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₹4,186 Mil. Hindustan Construction Co's average total debt for the quarter that ended in Mar. 2026 was ₹10,192 Mil. Therefore, Hindustan Construction Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 41.07%.


Hindustan Construction Co  (NSE:HCC) Effective Interest Rate on Debt % Explanation

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


Hindustan Construction Co Effective Interest Rate on Debt % Related Terms


Hindustan Construction Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Hindustan Construction Co'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.

Hindustan Construction Co Effective Interest Rate on Debt % Chart

Hindustan Construction Co 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 20.98 19.07 19.46 28.46 30.88

Hindustan Construction Co 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 26.53 29.04 29.78 30.54 41.07

NSE:HCC vs PWR, FIX, EME: Effective Interest Rate on Debt % Comparison

For the Engineering & Construction subindustry, Hindustan Construction Co'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.


Hindustan Construction Co Effective Interest Rate on Debt % vs Construction Industry

For the Construction industry and Industrials sector, Hindustan Construction Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Hindustan Construction Co's Effective Interest Rate on Debt % falls into.


NSE:HCC
68GF Score
Hindustan Construction Co Ltd NSE:HCC
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hindustan Construction Co Effective Interest Rate on Debt % Calculation

Hindustan Construction Co'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  *  -4166.6/( (16791.1+10191.5)/ 2 )
=-1  *  -4166.6/13491.3
=30.88 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10447.6 + 6343.5
=16791.1

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6483.2 + 3708.3
=10191.5

Hindustan Construction Co'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  *  -4186/( (0+10191.5)/ 1 )
=-1  *  -4186/10191.5
=41.07 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6483.2 + 3708.3
=10191.5

* 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 41.07% mean?
Hindustan Construction Co (NSE:HCC) has a Effective Interest Rate on Debt % of 41.07% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Hindustan Construction Co and its competitors.
Is Hindustan Construction Co's Effective Interest Rate on Debt % too high?
Hindustan Construction Co's current Effective Interest Rate on Debt % is 41.07%. Overall, Hindustan Construction Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Construction Co's Effective Interest Rate on Debt % compare to PWR and FIX?
Hindustan Construction Co's Effective Interest Rate on Debt % of 41.07% can be compared against companies in the Construction 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 Construction company?
A good Effective Interest Rate on Debt % depends on the Construction 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 Hindustan Construction Co and its competitors. Hindustan Construction Co's current Effective Interest Rate on Debt % is 41.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Construction Co (NSE:HCC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹16.20, compared to a current price of ₹21.44 — trading 32.3% above its estimated fair value. The current Effective Interest Rate on Debt % is 41.07%. Hindustan Construction Co's overall GF Score™ is 68/100 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 Hindustan Construction Co (NSE:HCC), the current Effective Interest Rate on Debt % is 41.07% 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 Hindustan Construction Co (NSE:HCC) Overvalued in 2026?

Based on GuruFocus' analysis, Hindustan Construction Co stock appears to be overvalued. The current stock price of ₹21.44 is trading 32.3% above its estimated GF Value™ of ₹16.20. GuruFocus considers Hindustan Construction Co to be Significantly Overvalued.

Key valuation signals for NSE:HCC:

  • Effective Interest Rate on Debt %: 41.07%
  • GF Value™: ₹16.20 vs. price of ₹21.44 (32.3% above fair value)
  • GF Score™: 68/100 with 3 warning signs

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


Hindustan Construction Co Business Description

Other Exchanges 500185:India
Address Lal Bahadur Shastri Marg, Hincon House, C-101, 1st Floor, 247 Park, Vikhroli (West), Mumbai, MH, IND, 400083
Hindustan Construction Co Ltd is engaged in the EPC(Engineering, Procurement, and Construction) Business. It is involved in high-value projects that span across diverse sectors such as transportation, power, marine projects, irrigation and water supply, special buildings and industrial plants. Its business segments include Engineering and Construction, which is the key revenue driver; Infrastructure; Real Estate; and others.
68GF Score

Get the complete analysis for NSE:HCC

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

₹21.44
Price
₹16.20
GF Value