Auro Laboratories (BOM:530233) Interest Coverage: 1.63 (As of Mar. 2026) — 65% Below Median

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BOM:530233 Auro Laboratories Ltd BOM:530233
57 GF Score
Price ₹234.75
GF Value ₹152.44
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Auro Laboratories Interest Coverage?

Auro Laboratories BOM:530233 +1.16% 57 Interest Coverage is 1.63 as of Mar. 2026, which is 65% below its 10-year median of 4.68. GuruFocus rates BOM:530233 with a GF Score™ of 57/100 and a GF Value™ of ₹152.44 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 684 Drug Manufacturers companies, Auro Laboratories ranks worse than 88.3% 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. Auro Laboratories's Operating Income for the three months ended in Mar. 2026 was ₹24.2 Mil. Auro Laboratories's Interest Expense for the three months ended in Mar. 2026 was ₹-14.9 Mil. Auro Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 1.63. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Auro Laboratories Ltd interest coverage is 1.64, which is low.

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

BOM:530233' s Interest Coverage Range Over the Past 10 Years
Min: 1.64   Med: 4.68   Max: 22.26
Current: 1.64


BOM:530233's Interest Coverage is ranked worse than
88.3% of 684 companies
in the Drug Manufacturers industry
Industry Median: 12.765 vs BOM:530233: 1.64

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


Auro Laboratories  (BOM:530233) 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 .


Auro Laboratories Interest Coverage Related Terms


Auro Laboratories Interest Coverage Historical Data

* Premium members only.

The historical data trend for Auro Laboratories'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.

Auro Laboratories Interest Coverage Chart

Auro Laboratories 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 4.37 4.08 13.03 2.13 1.69

Auro Laboratories 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 1.73 0.00 1.78 2.03 1.63

BOM:530233 vs ZTS: Interest Coverage Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Auro Laboratories'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.


Auro Laboratories Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Auro Laboratories's Interest Coverage distribution charts can be found below:

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


BOM:530233
57GF Score
Auro Laboratories Ltd BOM:530233
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Auro Laboratories 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.

Auro Laboratories'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, Auro Laboratories's Interest Expense was ₹-42.5 Mil. Its Operating Income was ₹72.0 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹433.1 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*71.959/-42.529
=1.69

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

Here, for the three months ended in Mar. 2026, Auro Laboratories's Interest Expense was ₹-14.9 Mil. Its Operating Income was ₹24.2 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹433.1 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*24.229/-14.874
=1.63

* 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 1.63 mean?
Auro Laboratories (BOM:530233) has a Interest Coverage of 1.63 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Auro Laboratories and its competitors. This is 65% below median its historical median of 4.68. Over the past decade, Auro Laboratories' Interest Coverage has ranged from 1.64 to 22.26. According to the industry distribution chart, Auro Laboratories ranks #604 out of 684 companies in the Drug Manufacturers industry, placing it in the top 88.3%.
Is Auro Laboratories' Interest Coverage too high?
Auro Laboratories' current Interest Coverage of 1.63 is 65% below median its 10-year median of 4.68. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 22.26. The Drug Manufacturers industry median Interest Coverage is 12.77. Auro Laboratories' value of 1.63 is 87.2% below this industry median. Based on the distribution chart, Auro Laboratories ranks #604 out of 684 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Auro Laboratories has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Auro Laboratories' Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Auro Laboratories ranks #604 out of 684 companies for Interest Coverage. This places Auro Laboratories in the lower half of its industry. The industry median Interest Coverage is 12.77. Auro Laboratories' value of 1.63 is 87.2% below this benchmark. Historically, Auro Laboratories' own Interest Coverage has ranged from 1.64 to 22.26 over the past decade. While the company's 10-year median is 4.68 vs. the industry median of 12.77, Auro Laboratories 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 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. Auro Laboratories's current Interest Coverage of 1.63 is 87.2% 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 Auro Laboratories and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Auro Laboratories's current Interest Coverage is 1.63, which is 65% below median its own 10-year median of 4.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Auro Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Auro Laboratories (BOM:530233) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹152.44, compared to a current price of ₹234.75 — trading 54% above its estimated fair value. The current Interest Coverage is 1.63, which is 65% below median its 10-year median of 4.68 and 87.2% below the Drug Manufacturers industry median of 12.77. Auro Laboratories' overall GF Score™ is 57/100 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 Auro Laboratories (BOM:530233), the current Interest Coverage is 1.63 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 Auro Laboratories (BOM:530233) Overvalued in 2026?

Based on GuruFocus' analysis, Auro Laboratories stock appears to be overvalued. The current stock price of ₹234.75 is trading 54% above its estimated GF Value™ of ₹152.44. GuruFocus considers Auro Laboratories to be Significantly Overvalued.

Key valuation signals for BOM:530233:

  • Interest Coverage: 1.63 (65% below median its 10-year median of 4.68)
  • GF Value™: ₹152.44 vs. price of ₹234.75 (54% above fair value)
  • GF Score™: 57/100 with 6 warning signs
  • Industry Position: 87.2% below the Drug Manufacturers median (#604 of 684)

No single metric tells the full story. See the BOM:530233 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Auro Laboratories Business Description

Address S.K. Ahire Marg, 314, 3rd Floor, T.V. Industrial Estate, Worli, Mumbai, MH, IND, 400 030
Auro Laboratories Ltd is an India-based pharmaceutical company. It is engaged in the manufacturing and selling of pharmaceutical products like Metformin Hydrochloride and Glibenclamide. The pharmaceutical products range offered by the company are anti-diabetic, muscle relaxant, diuretic, iron deficiency anti-fungal, anti-ulcer, iodine supplement, anti-malaria, antacids, anti-inflammatory, specialty chemicals, and others. The company sells its products in India and also exports it to international countries.
57GF Score

Get the complete analysis for BOM:530233

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

₹234.75
Price
₹152.44
GF Value