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Tata ChemicalsBOM:500770 -0.82%74 Interest Coverage is 1.48 as of Jun. 2026, which is 68% below its 10-year median of 4.66. GuruFocus rates BOM:500770 with a GF Score™ of 74/100 and a GF Value™ of ₹934.11 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,254 Chemicals companies, Tata Chemicals ranks worse than 96.01% 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. Tata Chemicals's
Operating Income
for the
three
months ended in Jun. 2026 was ₹2,190 Mil. Tata Chemicals's Interest Expense for the
three
months ended in Jun. 2026 was ₹-1,480 Mil.
Tata Chemicals's interest coverage for the quarter that ended in Jun. 2026 was 1.48.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tata Chemicals's Interest Coverage or its related term are showing as below:
BOM:500770'
s Interest Coverage Range Over the Past 10 Years
Min: 0.77 Med: 4.66 Max: 9.2
Current: 0.77
BOM:500770's Interest Coverage is ranked worse than 96.01% of 1254
companies
in the Chemicals industry
Industry Median: 11.25
vs BOM:500770: 0.77
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 .
Tata Chemicals Interest Coverage Related Terms
Tata Chemicals Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tata Chemicals'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.
For the Chemicals subindustry, Tata Chemicals'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.
Tata Chemicals Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tata Chemicals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tata Chemicals'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.
Tata Chemicals (BOM:500770) has a Interest Coverage of 1.48 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tata Chemicals and its competitors. This is 68% below median its historical median of 4.66. Over the past decade, Tata Chemicals' Interest Coverage has ranged from 0.77 to 9.20. According to the industry distribution chart, Tata Chemicals ranks #1204 out of 1254 companies in the Chemicals industry, placing it in the top 96%.
Is Tata Chemicals' Interest Coverage too high?
Tata Chemicals' current Interest Coverage of 1.48 is 68% below median its 10-year median of 4.66. Over the past 10 years, this metric has ranged from a low of 0.77 to a high of 9.20. The Chemicals industry median Interest Coverage is 11.25. Tata Chemicals' value of 1.48 is 86.8% below this industry median. Based on the distribution chart, Tata Chemicals ranks #1204 out of 1254 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Tata Chemicals has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tata Chemicals' Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Tata Chemicals ranks #1204 out of 1254 companies for Interest Coverage. This places Tata Chemicals in the lower half of its industry. The industry median Interest Coverage is 11.25. Tata Chemicals' value of 1.48 is 86.8% below this benchmark. Historically, Tata Chemicals' own Interest Coverage has ranged from 0.77 to 9.20 over the past decade. While the company's 10-year median is 4.66 vs. the industry median of 11.25, Tata Chemicals 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 11.25, based on 1,254 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. Tata Chemicals's current Interest Coverage of 1.48 is 86.8% 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 Tata Chemicals and its competitors. For the Chemicals industry, the median Interest Coverage is 11.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Chemicals's current Interest Coverage is 1.48, which is 68% below median its own 10-year median of 4.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Tata Chemicals (BOM:500770) is currently considered Possible Value Trap. The stock's GF Value™ is ₹934.11, compared to a current price of ₹628.10 — trading 32.8% below its estimated fair value. The current Interest Coverage is 1.48, which is 68% below median its 10-year median of 4.66 and 86.8% below the Chemicals industry median of 11.25. Tata Chemicals' 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 Tata Chemicals (BOM:500770), the current Interest Coverage is 1.48 as of Jun. 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 Tata Chemicals (BOM:500770) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Chemicals stock appears to be undervalued.
The current stock price of ₹628.10 is trading 32.8% below its estimated GF Value™ of ₹934.11.
GuruFocus considers Tata Chemicals to be Possible Value Trap.
Key valuation signals for BOM:500770:
Interest Coverage: 1.48 (68% below median its 10-year median of 4.66)
GF Value™: ₹934.11 vs. price of ₹628.10 (32.8% below fair value)
Industry Position: 86.8% below the Chemicals median (#1204 of 1254)
No single metric tells the full story. See the BOM:500770 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Chemicals Ltd is a diversified business dealing in basic chemistry products and specialty products. It has a world'wide presence with key subsidiaries in United States of America (USA), United Kingdom (UK) and Kenya that are engaged in the manufacture and sale of soda ash, industrial salt and related products. It has two business segments Basic Chemistry Products and Specialty Products. The Basic Chemistry Products segment comprises inorganic chemicals, Soda Ash, Salt and Sodium Bicarbonate. Specialty Products segment is defined by chemistry driven differentiation and innovation. This portfolio includes three key product categories viz. Specialty Silica, Prebiotics and Agri Inputs. It generates majority of revenue from Basic Chemistry Products. It sells products mainly within India.
74GF Score
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