Tata SteelLSE:TTST -3.19%77 Interest Coverage is 3.66 as of Mar. 2026, which is 32% above its 10-year median of 2.77. GuruFocus rates LSE:TTST with a GF Score™ of 77/100 and a GF Value™ of $17.01 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 456 Steel companies, Tata Steel ranks worse than 61.18% 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. Tata Steel's
Operating Income
for the
three
months ended in Mar. 2026 was $707 Mil. Tata Steel's Interest Expense for the
three
months ended in Mar. 2026 was $-193 Mil.
Tata Steel's interest coverage for the quarter that ended in Mar. 2026 was 3.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tata Steel's Interest Coverage or its related term are showing as below:
LSE:TTST'
s Interest Coverage Range Over the Past 10 Years
Min: 1.11 Med: 2.77 Max: 10.2
Current: 3.13
LSE:TTST's Interest Coverage is ranked worse than 61.18% of 456
companies
in the Steel industry
Industry Median: 4.445
vs LSE:TTST: 3.13
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 .
Tata Steel Interest Coverage Related Terms
Tata Steel Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tata Steel'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.
LSE:TTST vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Tata Steel'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.
Tata Steel Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Tata Steel's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tata Steel'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.
Tata Steel (LSE:TTST) has a Interest Coverage of 3.66 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tata Steel and its competitors. This is 32% above median its historical median of 2.77. Over the past decade, Tata Steel's Interest Coverage has ranged from 1.11 to 10.20. According to the industry distribution chart, Tata Steel ranks #279 out of 456 companies in the Steel industry, placing it in the top 61.2%.
Is Tata Steel's Interest Coverage too high?
Tata Steel's current Interest Coverage of 3.66 is 32% above median its 10-year median of 2.77. Over the past 10 years, this metric has ranged from a low of 1.11 to a high of 10.20. The Steel industry median Interest Coverage is 4.45. Tata Steel's value of 3.66 is 17.7% below this industry median. Based on the distribution chart, Tata Steel ranks #279 out of 456 companies in the Steel industry, which is below the industry midpoint. Overall, Tata Steel has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tata Steel's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Tata Steel ranks #279 out of 456 companies for Interest Coverage. This places Tata Steel in the lower half of its industry. The industry median Interest Coverage is 4.45. Tata Steel's value of 3.66 is 17.7% below this benchmark. Historically, Tata Steel's own Interest Coverage has ranged from 1.11 to 10.20 over the past decade. While the company's 10-year median is 2.77 vs. the industry median of 4.45, Tata Steel 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. Tata Steel's current Interest Coverage of 3.66 is 17.7% 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 Tata Steel and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Steel's current Interest Coverage is 3.66, which is 32% above median its own 10-year median of 2.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Steel stock overvalued right now?
Based on GuruFocus' analysis, Tata Steel (LSE:TTST) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.01, compared to a current price of $19.75 — trading 16.1% above its estimated fair value. The current Interest Coverage is 3.66, which is 32% above median its 10-year median of 2.77 and 17.7% below the Steel industry median of 4.45. Tata Steel's overall GF Score™ is 77/100 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 Tata Steel (LSE:TTST), the current Interest Coverage is 3.66 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 Tata Steel (LSE:TTST) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Steel stock appears to be overvalued.
The current stock price of $19.75 is trading 16.1% above its estimated GF Value™ of $17.01.
GuruFocus considers Tata Steel to be Modestly Overvalued.
Key valuation signals for LSE:TTST:
Interest Coverage: 3.66 (32% above median its 10-year median of 2.77)
GF Value™: $17.01 vs. price of $19.75 (16.1% above fair value)
Industry Position: 17.7% below the Steel median (#279 of 456)
No single metric tells the full story. See the LSE:TTST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strips. Its segments include Tata Steel India, Neelachal Ispat Nigam Limited, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and Rest of the world. It generates the majority of its revenue from the Tata Steel India segment.
77GF Score
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