CiplaCPLFY 94 Interest Coverage is 46.75 as of Mar. 2026, which is 69% above its 10-year median of 27.65. GuruFocus rates CPLFY with a GF Score™ of 94/100. The stock has 3 warning signs investors should review. Among 685 Drug Manufacturers companies, Cipla ranks better than 77.08% 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. Cipla's
Operating Income
for the
three
months ended in Mar. 2026 was $66.16 Mil. Cipla's Interest Expense for the
three
months ended in Mar. 2026 was $-1.42 Mil.
Cipla's interest coverage for the quarter that ended in Mar. 2026 was 46.75.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Cipla Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Cipla's Interest Coverage or its related term are showing as below:
CPLFY'
s Interest Coverage Range Over the Past 10 Years
Min: 10.5 Med: 27.65 Max: 139.58
Current: 86.67
CPLFY's Interest Coverage is ranked better than 77.08% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs CPLFY: 86.67
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 .
Cipla Interest Coverage Related Terms
Cipla Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cipla'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, Cipla'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.
Cipla Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Cipla's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cipla'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.
Cipla (CPLFY) has a Interest Coverage of 46.75 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cipla and its competitors. This is 69% above median its historical median of 27.65. Over the past decade, Cipla's Interest Coverage has ranged from 10.50 to 139.58. According to the industry distribution chart, Cipla ranks #157 out of 685 companies in the Drug Manufacturers industry, placing it in the top 22.9%.
Is Cipla's Interest Coverage too high?
Cipla's current Interest Coverage of 46.75 is 69% above median its 10-year median of 27.65. Over the past 10 years, this metric has ranged from a low of 10.50 to a high of 139.58. The Drug Manufacturers industry median Interest Coverage is 12.78. Cipla's value of 46.75 is 265.8% above this industry median. Based on the distribution chart, Cipla ranks #157 out of 685 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Cipla has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Cipla's Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Cipla ranks #157 out of 685 companies for Interest Coverage. This places Cipla in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.78. Cipla's value of 46.75 is 265.8% above this benchmark. Historically, Cipla's own Interest Coverage has ranged from 10.50 to 139.58 over the past decade. While the company's 10-year median is 27.65 vs. the industry median of 12.78, Cipla 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Cipla's current Interest Coverage of 46.75 is 265.8% 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 Cipla and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cipla's current Interest Coverage is 46.75, which is 69% above median its own 10-year median of 27.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cipla stock overvalued right now?
Cipla (CPLFY) has a current Interest Coverage of 46.75. The current Interest Coverage is 46.75, which is 69% above median its 10-year median of 27.65 and 265.8% above the Drug Manufacturers industry median of 12.78. Cipla's overall GF Score™ is 94/100 with 3 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 Cipla (CPLFY), the current Interest Coverage is 46.75 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.
Cipla Ltd is a drug manufacturing company that focuses on a variety of pharmaceutical products. The company's product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments. The bulk of its sales are generated in India, although it maintains a large world-wide presence. Cipla's growth plan focuses on new product launches. It has two segments Pharmaceuticals and new ventures. It derives maximum revenue from Pharmaceuticals Segment.
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