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Bajaj AutoBOM:532977 +1.13%92 Interest Coverage is 10.66 as of Jun. 2026, which is 98% below its 10-year median of 641.98. GuruFocus rates BOM:532977 with a GF Score™ of 92/100 and a GF Value™ of ₹12,167.67 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,060 Vehicles & Parts companies, Bajaj Auto ranks better than 56.32% 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. Bajaj Auto's
Operating Income
for the
three
months ended in Jun. 2026 was ₹41,263 Mil. Bajaj Auto's Interest Expense for the
three
months ended in Jun. 2026 was ₹-3,871 Mil.
Bajaj Auto's interest coverage for the quarter that ended in Jun. 2026 was 10.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Bajaj Auto's Interest Coverage or its related term are showing as below:
BOM:532977'
s Interest Coverage Range Over the Past 10 Years
Min: 10.41 Med: 641.98 Max: 3468.81
Current: 10.41
BOM:532977's Interest Coverage is ranked better than 56.32% of 1060
companies
in the Vehicles & Parts industry
Industry Median: 8.4
vs BOM:532977: 10.41
Bajaj Auto (BOM:532977) 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 .
Bajaj Auto Interest Coverage Related Terms
Bajaj Auto Interest Coverage Historical Data
* Premium members only.
The historical data trend for Bajaj Auto'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:532977 vs TSLA, GM, F: Interest Coverage Comparison
For the Auto Manufacturers subindustry, Bajaj Auto'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.
Bajaj Auto Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Bajaj Auto's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Bajaj Auto'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.
Bajaj Auto (BOM:532977) has a Interest Coverage of 10.66 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bajaj Auto and its competitors. This is 98% below median its historical median of 641.98. Over the past decade, Bajaj Auto's Interest Coverage has ranged from 10.41 to 3,468.81. According to the industry distribution chart, Bajaj Auto ranks #463 out of 1060 companies in the Vehicles & Parts industry, placing it in the top 43.7%.
Is Bajaj Auto's Interest Coverage too high?
Bajaj Auto's current Interest Coverage of 10.66 is 98% below median its 10-year median of 641.98. Over the past 10 years, this metric has ranged from a low of 10.41 to a high of 3,468.81. The Vehicles & Parts industry median Interest Coverage is 8.40. Bajaj Auto's value of 10.66 is 26.9% above this industry median. Based on the distribution chart, Bajaj Auto ranks #463 out of 1060 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Bajaj Auto has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Auto's Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Bajaj Auto ranks #463 out of 1060 companies for Interest Coverage. This puts Bajaj Auto in the upper half of its industry. The industry median Interest Coverage is 8.40. Bajaj Auto's value of 10.66 is 26.9% above this benchmark. Historically, Bajaj Auto's own Interest Coverage has ranged from 10.41 to 3,468.81 over the past decade. While the company's 10-year median is 641.98 vs. the industry median of 8.40, Bajaj Auto 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.40, based on 1,060 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. Bajaj Auto's current Interest Coverage of 10.66 is 26.9% 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 Bajaj Auto and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Auto's current Interest Coverage is 10.66, which is 98% below median its own 10-year median of 641.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Auto stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Auto (BOM:532977) is currently considered Fairly Valued. The stock's GF Value™ is ₹12,167.67, compared to a current price of ₹11,681.50 — trading 4% below its estimated fair value. The current Interest Coverage is 10.66, which is 98% below median its 10-year median of 641.98 and 26.9% above the Vehicles & Parts industry median of 8.40. Bajaj Auto's 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 Bajaj Auto (BOM:532977), the current Interest Coverage is 10.66 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 Bajaj Auto (BOM:532977) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Auto stock appears to be undervalued.
The current stock price of ₹11,681.50 is trading 4% below its estimated GF Value™ of ₹12,167.67.
GuruFocus considers Bajaj Auto to be Fairly Valued.
Key valuation signals for BOM:532977:
Interest Coverage: 10.66 (98% below median its 10-year median of 641.98)
GF Value™: ₹12,167.67 vs. price of ₹11,681.50 (4% below fair value)
Industry Position: 26.9% above the Vehicles & Parts median (#463 of 1060)
No single metric tells the full story. See the BOM:532977 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Auto Ltd is an automotive sales company. The company is engaged in the business of development, manufacturing, and distribution of automobiles such as motorcycles, commercial vehicles, electric vehicles, etc., and parts thereof. The company sells its products in India as well as in various other global markets. It has three business segments Automotive, Investments, Financing and Others. The company derives the majority of its revenue from the Automotive segment.
92GF Score
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