Bajaj FinservBOM:532978 +1.12%83 Interest Coverage is 1.95 as of Mar. 2026, which is 11% below its 10-year median of 2.18. GuruFocus rates BOM:532978 with a GF Score™ of 83/100 and a GF Value™ of ₹2,495.41 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 387 Diversified Financial Services companies, Bajaj Finserv ranks worse than 98.19% 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
EBIT
by its Interest Expense. Bajaj Finserv's
EBIT
for the
three
months ended in Mar. 2026 was ₹142,190 Mil. Bajaj Finserv's Interest Expense for the
three
months ended in Mar. 2026 was ₹-72,909 Mil.
Bajaj Finserv's interest coverage for the quarter that ended in Mar. 2026 was 1.95.
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. Bajaj Finserv Ltd interest coverage is 1.95, which is low.
The historical rank and industry rank for Bajaj Finserv's Interest Coverage or its related term are showing as below:
BOM:532978'
s Interest Coverage Range Over the Past 10 Years
Min: 1.89 Med: 2.18 Max: 2.51
Current: 1.95
BOM:532978's Interest Coverage is ranked worse than 98.19% of 387
companies
in the Diversified Financial Services industry
Industry Median: No Debt
vs BOM:532978: 1.95
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 Finserv Interest Coverage Related Terms
Bajaj Finserv Interest Coverage Historical Data
* Premium members only.
The historical data trend for Bajaj Finserv'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:532978 vs VOYA, FRHC: Interest Coverage Comparison
For the Financial Conglomerates subindustry, Bajaj Finserv'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 Finserv Interest Coverage vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Bajaj Finserv's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Bajaj Finserv'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 Finserv (BOM:532978) has a Interest Coverage of 1.95 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bajaj Finserv and its competitors. This is 11% below median its historical median of 2.18. Over the past decade, Bajaj Finserv's Interest Coverage has ranged from 1.89 to 2.51. According to the industry distribution chart, Bajaj Finserv ranks #380 out of 387 companies in the Diversified Financial Services industry, placing it in the top 98.2%.
Is Bajaj Finserv's Interest Coverage too high?
Bajaj Finserv's current Interest Coverage of 1.95 is 11% below median its 10-year median of 2.18. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 2.51. The Diversified Financial Services industry median Interest Coverage is 10,000.00. Bajaj Finserv's value of 1.95 is 100% below this industry median. Based on the distribution chart, Bajaj Finserv ranks #380 out of 387 companies in the Diversified Financial Services industry, which is in the bottom quartile relative to peers. Overall, Bajaj Finserv has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finserv's Interest Coverage compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Bajaj Finserv ranks #380 out of 387 companies for Interest Coverage. This places Bajaj Finserv in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Bajaj Finserv's value of 1.95 is 100% below this benchmark. Historically, Bajaj Finserv's own Interest Coverage has ranged from 1.89 to 2.51 over the past decade. While the company's 10-year median is 2.18 vs. the industry median of 10,000.00, Bajaj Finserv 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 Diversified Financial Services company?
The median Interest Coverage among Diversified Financial Services companies is 10,000.00, based on 387 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 Finserv's current Interest Coverage of 1.95 is 100% 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 Bajaj Finserv and its competitors. For the Diversified Financial Services industry, the median Interest Coverage is 10,000.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finserv's current Interest Coverage is 1.95, which is 11% below median its own 10-year median of 2.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finserv stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finserv (BOM:532978) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,495.41, compared to a current price of ₹1,915.55 — trading 23.2% below its estimated fair value. The current Interest Coverage is 1.95, which is 11% below median its 10-year median of 2.18 and 100% below the Diversified Financial Services industry median of 10,000.00. Bajaj Finserv's overall GF Score™ is 83/100 with 4 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 Finserv (BOM:532978), the current Interest Coverage is 1.95 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 Bajaj Finserv (BOM:532978) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finserv stock appears to be undervalued.
The current stock price of ₹1,915.55 is trading 23.2% below its estimated GF Value™ of ₹2,495.41.
GuruFocus considers Bajaj Finserv to be Modestly Undervalued.
Key valuation signals for BOM:532978:
Interest Coverage: 1.95 (11% below median its 10-year median of 2.18)
GF Value™: ₹2,495.41 vs. price of ₹1,915.55 (23.2% below fair value)
Industry Position: 100% below the Diversified Financial Services median (#380 of 387)
No single metric tells the full story. See the BOM:532978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finserv Ltd is a non-banking financial services company headquartered in India that engages in lending activities. It services six lending verticals: consumer, small and midsize enterprises, commercial, rural, deposits, and partnerships and services. Bajaj's consumer and rural lending consists of funding solutions for consumer durables, such as vehicles and furniture, to personal loans. The commercial lending activities consist of funding for plant and machinery assets and term loans to SMEs. Its business segments include: Life Insurance, General Insurance, Windpower, Retail Finance, and Investment and Others. It derives maximum revenue from the Retail Finance segment. Geographically, the company derives all of its revenue from its operations in India.
83GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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