Ashok LeylandBOM:500477 +1.48%88 Interest Coverage is 2.58 as of Mar. 2026, which is 12% above its 10-year median of 2.31. GuruFocus rates BOM:500477 with a GF Score™ of 88/100 and a GF Value™ of ₹128.39 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 169 Farm & Heavy Construction Machinery companies, Ashok Leyland ranks worse than 84.02% 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. Ashok Leyland's
Operating Income
for the
three
months ended in Mar. 2026 was ₹32,008 Mil. Ashok Leyland's Interest Expense for the
three
months ended in Mar. 2026 was ₹-12,406 Mil.
Ashok Leyland's interest coverage for the quarter that ended in Mar. 2026 was 2.58.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ashok Leyland's Interest Coverage or its related term are showing as below:
BOM:500477'
s Interest Coverage Range Over the Past 10 Years
Min: 1.25 Med: 2.31 Max: 3.33
Current: 2.3
BOM:500477's Interest Coverage is ranked worse than 84.02% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.34
vs BOM:500477: 2.30
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 .
Ashok Leyland Interest Coverage Related Terms
Ashok Leyland Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ashok Leyland'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.
BOM:500477 vs CAT, DE, PCAR: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Ashok Leyland'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.
Ashok Leyland Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ashok Leyland's Interest Coverage falls into.
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:
* 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 (BOM:500477) has a Interest Coverage of 2.58 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ashok Leyland and its competitors. This is 12% above median its historical median of 2.31. Over the past decade, Ashok Leyland's Interest Coverage has ranged from 1.25 to 3.33. According to the industry distribution chart, Ashok Leyland ranks #142 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 84%.
Is Ashok Leyland's Interest Coverage too high?
Ashok Leyland's current Interest Coverage of 2.58 is 12% above median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 3.33. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.34. Ashok Leyland's value of 2.58 is 72.4% below this industry median. Based on the distribution chart, Ashok Leyland ranks #142 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Ashok Leyland has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's Interest Coverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ashok Leyland ranks #142 out of 169 companies for Interest Coverage. This places Ashok Leyland in the lower half of its industry. The industry median Interest Coverage is 9.34. Ashok Leyland's value of 2.58 is 72.4% below this benchmark. Historically, Ashok Leyland's own Interest Coverage has ranged from 1.25 to 3.33 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 9.34, Ashok Leyland has consistently been below 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 Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.34, based on 169 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. Ashok Leyland's current Interest Coverage of 2.58 is 72.4% below 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 Ashok Leyland and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ashok Leyland's current Interest Coverage is 2.58, which is 12% above median its own 10-year median of 2.31. 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 (BOM:500477) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹128.39, compared to a current price of ₹157.55 — trading 22.7% above its estimated fair value. The current Interest Coverage is 2.58, which is 12% above median its 10-year median of 2.31 and 72.4% below the Farm & Heavy Construction Machinery industry median of 9.34. Ashok Leyland's overall GF Score™ is 88/100 with 1 warning sign 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 Ashok Leyland (BOM:500477), the current Interest Coverage is 2.58 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 (BOM:500477) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹157.55 is trading 22.7% above its estimated GF Value™ of ₹128.39.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for BOM:500477:
Interest Coverage: 2.58 (12% above median its 10-year median of 2.31)
GF Value™: ₹128.39 vs. price of ₹157.55 (22.7% above fair value)
Industry Position: 72.4% below the Farm & Heavy Construction Machinery median (#142 of 169)
No single metric tells the full story. See the BOM:500477 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.
88GF Score
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