Vedanta (BUE:VEDL) Interest Coverage: 8.45 (As of Mar. 2026) — 108% Above Median


What is Vedanta Interest Coverage?

Vedanta BUE:VEDL 61 Interest Coverage is 8.45 as of Mar. 2026, which is 108% above its 10-year median of 4.06. GuruFocus rates BUE:VEDL with a GF Score™ of 61/100. The stock has 5 warning signs investors should review. Among 1,316 Metals & Mining companies, Vedanta ranks worse than 89.97% 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. Vedanta's Operating Income for the three months ended in Mar. 2026 was ARS938,056.58 Mil. Vedanta's Interest Expense for the three months ended in Mar. 2026 was ARS-111,024.20 Mil. Vedanta's interest coverage for the quarter that ended in Mar. 2026 was 8.45. The higher the ratio, the stronger the company's financial strength is.

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

BUE:VEDL' s Interest Coverage Range Over the Past 10 Years
Min: 2.71   Med: 4.06   Max: 8.01
Current: 4.66


BUE:VEDL's Interest Coverage is ranked worse than
89.97% of 1316 companies
in the Metals & Mining industry
Industry Median: No Debt vs BUE:VEDL: 4.66

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


Vedanta  (BUE:VEDL) 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 .


Vedanta Interest Coverage Related Terms


Vedanta Interest Coverage Historical Data

* Premium members only.

The historical data trend for Vedanta'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.

Vedanta Interest Coverage Chart

Vedanta 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 8.01 4.15 2.94 4.06 7.32

Vedanta 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 3.79 3.50 4.04 5.50 8.45

Vedanta Interest Coverage Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Vedanta'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.


Vedanta Interest Coverage vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Vedanta's Interest Coverage distribution charts can be found below:

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



Vedanta 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.

Vedanta'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, Vedanta's Interest Expense was ARS-380,525.28 Mil. Its Operating Income was ARS2,786,451.36 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS2,490,888.97 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*2786451.357/-380525.281
=7.32

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

Here, for the three months ended in Mar. 2026, Vedanta's Interest Expense was ARS-111,024.20 Mil. Its Operating Income was ARS938,056.58 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS2,490,888.97 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*938056.582/-111024.201
=8.45

* 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 8.45 mean?
Vedanta (BUE:VEDL) has a Interest Coverage of 8.45 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Vedanta and its competitors. This is 108% above median its historical median of 4.06. Over the past decade, Vedanta's Interest Coverage has ranged from 2.71 to 8.01. According to the industry distribution chart, Vedanta ranks #1184 out of 1316 companies in the Metals & Mining industry, placing it in the top 90%.
Is Vedanta's Interest Coverage too high?
Vedanta's current Interest Coverage of 8.45 is 108% above median its 10-year median of 4.06. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 8.01. The Metals & Mining industry median Interest Coverage is 10,000.00. Vedanta's value of 8.45 is 99.9% below this industry median. Based on the distribution chart, Vedanta ranks #1184 out of 1316 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Vedanta has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Vedanta's Interest Coverage compare to competitors?
According to the Metals & Mining industry distribution chart, Vedanta ranks #1184 out of 1316 companies for Interest Coverage. This places Vedanta in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Vedanta's value of 8.45 is 99.9% below this benchmark. Historically, Vedanta's own Interest Coverage has ranged from 2.71 to 8.01 over the past decade. While the company's 10-year median is 4.06 vs. the industry median of 10,000.00, Vedanta 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 Metals & Mining company?
The median Interest Coverage among Metals & Mining companies is 10,000.00, based on 1,316 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. Vedanta's current Interest Coverage of 8.45 is 99.9% 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 Vedanta and its competitors. For the Metals & Mining 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. Vedanta's current Interest Coverage is 8.45, which is 108% above median its own 10-year median of 4.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vedanta stock overvalued right now?
Vedanta (BUE:VEDL) has a current Interest Coverage of 8.45. The current Interest Coverage is 8.45, which is 108% above median its 10-year median of 4.06 and 99.9% below the Metals & Mining industry median of 10,000.00. Vedanta's overall GF Score™ is 61/100 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 Vedanta (BUE:VEDL), the current Interest Coverage is 8.45 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.

Vedanta Business Description

Other Exchanges VEDL:India500295:India
Address Lodhi Road, Core-6, 3rd Floor, Scope Complex 7, New Delhi, MH, IND, 110 003
Vedanta Ltd is a diversified natural resource Group engaged in exploring, extracting and processing minerals. The Group engages in the exploration, production and sale of zinc, lead, silver, copper, iron ore and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and UAE. The Group is also in the business of commercial power generation, powercables, steel manufacturing and port operations in India and manufacturing of glass substrate in South Korea and Taiwan. The Group's reportable segments are copper, power, Zinc India, Zinc international, and others. It generates majority of revenue from Zinc India. It has presence in India, Europe, Saudi Arabia, China, The United States of America, Mexico, and Others of which majority of revenue is from India.