Hindalco IndustriesHNDNF 80 Interest Coverage is 7.49 as of Mar. 2026, which is 102% above its 10-year median of 3.70. GuruFocus rates HNDNF with a GF Score™ of 80/100 and a GF Value™ of $2.45. The stock has 2 warning signs investors should review. Among 1,319 Metals & Mining companies, Hindalco Industries ranks worse than 84.84% 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. Hindalco Industries's
Operating Income
for the
three
months ended in Mar. 2026 was $840 Mil. Hindalco Industries's Interest Expense for the
three
months ended in Mar. 2026 was $-112 Mil.
Hindalco Industries's interest coverage for the quarter that ended in Mar. 2026 was 7.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hindalco Industries's Interest Coverage or its related term are showing as below:
HNDNF'
s Interest Coverage Range Over the Past 10 Years
Min: 1.79 Med: 3.7 Max: 10.03
Current: 7.58
HNDNF's Interest Coverage is ranked worse than 84.84% of 1319
companies
in the Metals & Mining industry
Industry Median: No Debt
vs HNDNF: 7.58
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 .
Hindalco Industries Interest Coverage Related Terms
Hindalco Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hindalco Industries'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 Aluminum subindustry, Hindalco Industries'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.
Hindalco Industries Interest Coverage vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Hindalco Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hindalco Industries'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.
Hindalco Industries (HNDNF) has a Interest Coverage of 7.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hindalco Industries and its competitors. This is 102% above median its historical median of 3.70. Over the past decade, Hindalco Industries' Interest Coverage has ranged from 1.79 to 10.03. According to the industry distribution chart, Hindalco Industries ranks #1119 out of 1319 companies in the Metals & Mining industry, placing it in the top 84.8%.
Is Hindalco Industries' Interest Coverage too high?
Hindalco Industries' current Interest Coverage of 7.49 is 102% above median its 10-year median of 3.70. Over the past 10 years, this metric has ranged from a low of 1.79 to a high of 10.03. The Metals & Mining industry median Interest Coverage is 10,000.00. Hindalco Industries' value of 7.49 is 99.9% below this industry median. Based on the distribution chart, Hindalco Industries ranks #1119 out of 1319 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Hindalco Industries has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Hindalco Industries' Interest Coverage compare to AA?
According to the Metals & Mining industry distribution chart, Hindalco Industries ranks #1119 out of 1319 companies for Interest Coverage. This places Hindalco Industries in the lower half of its industry. The industry median Interest Coverage is 10,000.00. Hindalco Industries' value of 7.49 is 99.9% below this benchmark. Historically, Hindalco Industries' own Interest Coverage has ranged from 1.79 to 10.03 over the past decade. While the company's 10-year median is 3.70 vs. the industry median of 10,000.00, Hindalco Industries 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 1,319 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. Hindalco Industries's current Interest Coverage of 7.49 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 Hindalco Industries 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. Hindalco Industries's current Interest Coverage is 7.49, which is 102% above median its own 10-year median of 3.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindalco Industries stock overvalued right now?
Hindalco Industries (HNDNF) has a current Interest Coverage of 7.49. The stock's GF Value™ is $2.45, compared to a current price of $2.95 — trading 20.4% above its estimated fair value. The current Interest Coverage is 7.49, which is 102% above median its 10-year median of 3.70 and 99.9% below the Metals & Mining industry median of 10,000.00. Hindalco Industries' overall GF Score™ is 80/100 with 2 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 Hindalco Industries (HNDNF), the current Interest Coverage is 7.49 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 Hindalco Industries (HNDNF) Overvalued in 2026?
Based on GuruFocus' analysis, Hindalco Industries stock appears to be overvalued.
The current stock price of $2.95 is trading 20.4% above its estimated GF Value™ of $2.45.
Key valuation signals for HNDNF:
Interest Coverage: 7.49 (102% above median its 10-year median of 3.70)
GF Value™: $2.45 vs. price of $2.95 (20.4% above fair value)
Industry Position: 99.9% below the Metals & Mining median (#1119 of 1319)
No single metric tells the full story. See the HNDNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindalco Industries Ltd extracts raw materials and produces and sells industrial metals in the below segments: Copper, Aluminum Upstream and Aluminium Downstream, Novelis, and all other Segment. The Copper segment purchases raw materials and produces continuous cast copper rods, copper cathodes, sulphuric acid, gold, and silver. The firm hedges its copper and other precious metals costs through futures contracts in an attempt to match commodity price changes between the time it purchases the raw materials and sells the finished products. The Aluminum segment mines bauxite and produces hydrate and alumina, aluminum, and aluminum-based products. The majority of Hindalco's revenue comes from India. The firm is also expanding internationally with sales and operations across the globe.
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