Arvind (BOM:500101) Interest Coverage: 5.64 (As of Mar. 2026) — 92% Above Median


BOM:500101 Arvind Ltd BOM:500101
74 GF Score
Price ₹525.60
GF Value ₹397.44
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Arvind Interest Coverage?

Arvind BOM:500101 -1.33% 74 Interest Coverage is 5.64 as of Mar. 2026, which is 92% above its 10-year median of 2.93. GuruFocus rates BOM:500101 with a GF Score™ of 74/100 and a GF Value™ of ₹397.44 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 734 Manufacturing - Apparel & Accessories companies, Arvind ranks worse than 53.81% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Arvind's Operating Income for the three months ended in Mar. 2026 was ₹2,287 Mil. Arvind's Interest Expense for the three months ended in Mar. 2026 was ₹-406 Mil. Arvind's interest coverage for the quarter that ended in Mar. 2026 was 5.64. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Arvind's Interest Coverage or its related term are showing as below:

BOM:500101' s Interest Coverage Range Over the Past 10 Years
Min: 0.95   Med: 2.93   Max: 4.33
Current: 4.33


BOM:500101's Interest Coverage is ranked worse than
53.81% of 734 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.445 vs BOM:500101: 4.33

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Arvind  (BOM:500101) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Arvind Interest Coverage Related Terms


Arvind Interest Coverage Historical Data

* Premium members only.

The historical data trend for Arvind's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Arvind Interest Coverage Chart

Arvind Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.30 3.98 3.89 3.59 4.33

Arvind Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage 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 3.76 2.63 4.25 4.82 5.64

Arvind Interest Coverage Competitor Comparison

For the Textile Manufacturing subindustry, Arvind's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.


Arvind Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arvind's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arvind's Interest Coverage falls into.


BOM:500101
74GF Score
Arvind Ltd BOM:500101
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arvind Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Arvind's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Arvind's Interest Expense was ₹-1,649 Mil. Its Operating Income was ₹7,141 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹4,573 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*7140.9/-1648.5
=4.33

Arvind's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Arvind's Interest Expense was ₹-406 Mil. Its Operating Income was ₹2,287 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹4,573 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*2286.5/-405.5
=5.64

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.64 mean?
Arvind (BOM:500101) has a Interest Coverage of 5.64 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arvind and its competitors. This is 92% above median its historical median of 2.93. Over the past decade, Arvind's Interest Coverage has ranged from 0.95 to 4.33. According to the industry distribution chart, Arvind ranks #395 out of 734 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 53.8%.
Is Arvind's Interest Coverage too high?
Arvind's current Interest Coverage of 5.64 is 92% above median its 10-year median of 2.93. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 4.33. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.45. Arvind's value of 5.64 is 3.6% above this industry median. Based on the distribution chart, Arvind ranks #395 out of 734 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Arvind has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arvind's Interest Coverage compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Arvind ranks #395 out of 734 companies for Interest Coverage. This places Arvind in the lower half of its industry. The industry median Interest Coverage is 5.45. Arvind's value of 5.64 is 3.6% above this benchmark. Historically, Arvind's own Interest Coverage has ranged from 0.95 to 4.33 over the past decade. While the company's 10-year median is 2.93 vs. the industry median of 5.45, Arvind has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.45, based on 734 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arvind's current Interest Coverage of 5.64 is 3.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arvind and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arvind's current Interest Coverage is 5.64, which is 92% above median its own 10-year median of 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arvind stock overvalued right now?
Based on GuruFocus' analysis, Arvind (BOM:500101) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹397.44, compared to a current price of ₹525.60 — trading 32.2% above its estimated fair value. The current Interest Coverage is 5.64, which is 92% above median its 10-year median of 2.93 and 3.6% above the Manufacturing - Apparel & Accessories industry median of 5.45. Arvind's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Arvind (BOM:500101), the current Interest Coverage is 5.64 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 Arvind (BOM:500101) Overvalued in 2026?

Based on GuruFocus' analysis, Arvind stock appears to be overvalued. The current stock price of ₹525.60 is trading 32.2% above its estimated GF Value™ of ₹397.44. GuruFocus considers Arvind to be Significantly Overvalued.

Key valuation signals for BOM:500101:

  • Interest Coverage: 5.64 (92% above median its 10-year median of 2.93)
  • GF Value™: ₹397.44 vs. price of ₹525.60 (32.2% above fair value)
  • GF Score™: 74/100 with 6 warning signs
  • Industry Position: 3.6% above the Manufacturing - Apparel & Accessories median (#395 of 734)

No single metric tells the full story. See the BOM:500101 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arvind Business Description

Other Exchanges ARVIND:India
Address Naroda Road, Ahmedabad, GJ, IND, 380025
Arvind Ltd is a textile company. It is engaged in manufacturing Denim, Cotton shirting, knits, and bottom weights (Khakis) fabrics, and Jeans and shirt garments. Its business segments are Textile, advanced material division, and others. The key contributor to the company's revenue is the Textiles business, which offers fabrics, garments, and fabric retail. The advanced material division segment offers human protection fabric and garments, industrial products, composites, and automotive fabrics. The company sells its products in India and the rest of the world.
74GF Score

Get the complete analysis for BOM:500101

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹525.60
Price
₹397.44
GF Value