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Gujarat EnergyBOM:539336 -3.11%83 Interest Coverage is 8.44 as of Mar. 2026, which is 4% below its 10-year median of 8.79. GuruFocus rates BOM:539336 with a GF Score™ of 83/100 and a GF Value™ of ₹648.55 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 448 Utilities - Regulated companies, Gujarat Energy ranks better than 84.37% 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. Gujarat Energy's
Operating Income
for the
three
months ended in Mar. 2026 was ₹3,852 Mil. Gujarat Energy's Interest Expense for the
three
months ended in Mar. 2026 was ₹-456 Mil.
Gujarat Energy's interest coverage for the quarter that ended in Mar. 2026 was 8.44.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Gujarat Energy's Interest Coverage or its related term are showing as below:
BOM:539336'
s Interest Coverage Range Over the Past 10 Years
Min: 2.42 Med: 8.79 Max: 49.84
Current: 19.86
BOM:539336's Interest Coverage is ranked better than 84.37% of 448
companies
in the Utilities - Regulated industry
Industry Median: 3.82
vs BOM:539336: 19.86
Gujarat Energy (BOM:539336) 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 .
Gujarat Energy Interest Coverage Related Terms
Gujarat Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Gujarat Energy'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:539336 vs ATO, NI, UGI: Interest Coverage Comparison
For the Utilities - Regulated Gas subindustry, Gujarat Energy'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.
Gujarat Energy Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Gujarat Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Gujarat Energy'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.
Gujarat Energy (BOM:539336) has a Interest Coverage of 8.44 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gujarat Energy and its competitors. This is near median its historical median of 8.79. Over the past decade, Gujarat Energy's Interest Coverage has ranged from 2.42 to 49.84. According to the industry distribution chart, Gujarat Energy ranks #70 out of 448 companies in the Utilities - Regulated industry, placing it in the top 15.6%.
Is Gujarat Energy's Interest Coverage too high?
Gujarat Energy's current Interest Coverage of 8.44 is near median its 10-year median of 8.79. Over the past 10 years, this metric has ranged from a low of 2.42 to a high of 49.84. The Utilities - Regulated industry median Interest Coverage is 3.82. Gujarat Energy's value of 8.44 is 120.9% above this industry median. Based on the distribution chart, Gujarat Energy ranks #70 out of 448 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Gujarat Energy has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gujarat Energy's Interest Coverage compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Gujarat Energy ranks #70 out of 448 companies for Interest Coverage. This places Gujarat Energy in the top 16% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.82. Gujarat Energy's value of 8.44 is 120.9% above this benchmark. Historically, Gujarat Energy's own Interest Coverage has ranged from 2.42 to 49.84 over the past decade. While the company's 10-year median is 8.79 vs. the industry median of 3.82, Gujarat Energy 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.82, based on 448 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. Gujarat Energy's current Interest Coverage of 8.44 is 120.9% 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 Gujarat Energy and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Energy's current Interest Coverage is 8.44, which is near median its own 10-year median of 8.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Energy stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Energy (BOM:539336) is currently considered Possible Value Trap. The stock's GF Value™ is ₹648.55, compared to a current price of ₹266.80 — trading 58.9% below its estimated fair value. The current Interest Coverage is 8.44, which is near median its 10-year median of 8.79 and 120.9% above the Utilities - Regulated industry median of 3.82. Gujarat Energy's overall GF Score™ is 83/100 with 7 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 Gujarat Energy (BOM:539336), the current Interest Coverage is 8.44 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 Gujarat Energy (BOM:539336) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Energy stock appears to be undervalued.
The current stock price of ₹266.80 is trading 58.9% below its estimated GF Value™ of ₹648.55.
GuruFocus considers Gujarat Energy to be Possible Value Trap.
Key valuation signals for BOM:539336:
Interest Coverage: 8.44 (near median its 10-year median of 8.79)
GF Value™: ₹648.55 vs. price of ₹266.80 (58.9% below fair value)
Industry Position: 120.9% above the Utilities - Regulated median (#70 of 448)
No single metric tells the full story. See the BOM:539336 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Energy Ltd, formerly Gujarat Gas Ltd is an India-based gas distribution company. Its activities include sale, purchase, supply, distribution, transport, trading in Natural Gas, Compressed natural gas, Liquefied natural gas, Liquefied petroleum gas, and other gaseous forms. The company transports the gas through pipelines, trucks, trains, or other suitable modes of transportation. It operates in the segment of the natural gas business. All the business activities of the company are carried out in India.
83GF Score
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