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Zydus LifesciencesBOM:532321 +0.99%92 Interest Coverage is 11.39 as of Mar. 2026, which is 48% below its 10-year median of 21.80. GuruFocus rates BOM:532321 with a GF Score™ of 92/100 and a GF Value™ of ₹1,161.54 (Fairly Valued). The stock has 5 warning signs investors should review. Among 687 Drug Manufacturers companies, Zydus Lifesciences ranks better than 50.8% 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. Zydus Lifesciences's
Operating Income
for the
three
months ended in Mar. 2026 was ₹14,011 Mil. Zydus Lifesciences's Interest Expense for the
three
months ended in Mar. 2026 was ₹-1,230 Mil.
Zydus Lifesciences's interest coverage for the quarter that ended in Mar. 2026 was 11.39.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Zydus Lifesciences's Interest Coverage or its related term are showing as below:
BOM:532321'
s Interest Coverage Range Over the Past 10 Years
Min: 6.34 Med: 21.8 Max: 103.16
Current: 13.18
BOM:532321's Interest Coverage is ranked better than 50.8% of 687
companies
in the Drug Manufacturers industry
Industry Median: 12.7
vs BOM:532321: 13.18
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 .
Zydus Lifesciences Interest Coverage Related Terms
Zydus Lifesciences Interest Coverage Historical Data
* Premium members only.
The historical data trend for Zydus Lifesciences'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 Drug Manufacturers - Specialty & Generic subindustry, Zydus Lifesciences'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.
Zydus Lifesciences Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zydus Lifesciences's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Zydus Lifesciences'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.
Zydus Lifesciences (BOM:532321) has a Interest Coverage of 11.39 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Zydus Lifesciences and its competitors. This is 48% below median its historical median of 21.80. Over the past decade, Zydus Lifesciences' Interest Coverage has ranged from 6.34 to 103.16. According to the industry distribution chart, Zydus Lifesciences ranks #338 out of 687 companies in the Drug Manufacturers industry, placing it in the top 49.2%.
Is Zydus Lifesciences' Interest Coverage too high?
Zydus Lifesciences' current Interest Coverage of 11.39 is 48% below median its 10-year median of 21.80. Over the past 10 years, this metric has ranged from a low of 6.34 to a high of 103.16. The Drug Manufacturers industry median Interest Coverage is 12.70. Zydus Lifesciences' value of 11.39 is 10.3% below this industry median. Based on the distribution chart, Zydus Lifesciences ranks #338 out of 687 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Zydus Lifesciences has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zydus Lifesciences' Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zydus Lifesciences ranks #338 out of 687 companies for Interest Coverage. This puts Zydus Lifesciences in the upper half of its industry. The industry median Interest Coverage is 12.70. Zydus Lifesciences' value of 11.39 is 10.3% below this benchmark. Historically, Zydus Lifesciences' own Interest Coverage has ranged from 6.34 to 103.16 over the past decade. While the company's 10-year median is 21.80 vs. the industry median of 12.70, Zydus Lifesciences 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 12.70, based on 687 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. Zydus Lifesciences's current Interest Coverage of 11.39 is 10.3% 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 Zydus Lifesciences and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zydus Lifesciences's current Interest Coverage is 11.39, which is 48% below median its own 10-year median of 21.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zydus Lifesciences stock overvalued right now?
Based on GuruFocus' analysis, Zydus Lifesciences (BOM:532321) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,161.54, compared to a current price of ₹1,126.50 — trading 3% below its estimated fair value. The current Interest Coverage is 11.39, which is 48% below median its 10-year median of 21.80 and 10.3% below the Drug Manufacturers industry median of 12.70. Zydus Lifesciences' overall GF Score™ is 92/100 with 5 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 Zydus Lifesciences (BOM:532321), the current Interest Coverage is 11.39 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 Zydus Lifesciences (BOM:532321) Overvalued in 2026?
Based on GuruFocus' analysis, Zydus Lifesciences stock appears to be undervalued.
The current stock price of ₹1,126.50 is trading 3% below its estimated GF Value™ of ₹1,161.54.
GuruFocus considers Zydus Lifesciences to be Fairly Valued.
Key valuation signals for BOM:532321:
Interest Coverage: 11.39 (48% below median its 10-year median of 21.80)
GF Value™: ₹1,161.54 vs. price of ₹1,126.50 (3% below fair value)
Industry Position: 10.3% below the Drug Manufacturers median (#338 of 687)
No single metric tells the full story. See the BOM:532321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zydus Lifesciences Ltd is a specialty and generic drug manufacturing company. It is engaged in the research, development, production, marketing, and distribution of pharmaceutical products. The product portfolio of the company includes Active Pharmaceutical Ingredients (API), human formulations, animal health and veterinary, and consumer health and wellness products. Its products are marketed under brands like Amlodac, Inditel, Pivasta, and others. The company's operating segments are: Pharmaceuticals, which derives key revenue, and Consumer products. Geographically, it generates maximum revenue from the United States, followed by India, and other countries.
92GF Score
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