Aban OffshoreNSE:ABAN +4.96%43 Interest Coverage is 11.79 as of Dec. 2025, which is 3966% above its 10-year median of 0.29. GuruFocus rates NSE:ABAN with a GF Score™ of 43/100 and a GF Value™ of ₹45.63 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 727 Oil & Gas companies, Aban Offshore ranks worse than 97.39% 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. Aban Offshore's
Operating Income
for the
three
months ended in Dec. 2025 was ₹377 Mil. Aban Offshore's Interest Expense for the
three
months ended in Dec. 2025 was ₹-32 Mil.
Aban Offshore's interest coverage for the quarter that ended in Dec. 2025 was 11.79.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Aban Offshore Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Aban Offshore's Interest Coverage or its related term are showing as below:
NSE:ABAN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.04 Med: 0.29 Max: 1.02
Current: 0.39
NSE:ABAN's Interest Coverage is ranked worse than 97.39% of 727
companies
in the Oil & Gas industry
Industry Median: 5.88
vs NSE:ABAN: 0.39
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 .
Aban Offshore Interest Coverage Related Terms
Aban Offshore Interest Coverage Historical Data
* Premium members only.
The historical data trend for Aban Offshore'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.
NSE:ABAN vs NE, RIG, VAL: Interest Coverage Comparison
For the Oil & Gas Drilling subindustry, Aban Offshore'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.
Aban Offshore Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Aban Offshore's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Aban Offshore'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.
Aban Offshore (NSE:ABAN) has a Interest Coverage of 11.79 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Aban Offshore and its competitors. This is 3966% above median its historical median of 0.29. Over the past decade, Aban Offshore's Interest Coverage has ranged from 0.04 to 1.02. According to the industry distribution chart, Aban Offshore ranks #708 out of 727 companies in the Oil & Gas industry, placing it in the top 97.4%.
Is Aban Offshore's Interest Coverage too high?
Aban Offshore's current Interest Coverage of 11.79 is 3966% above median its 10-year median of 0.29. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 1.02. The Oil & Gas industry median Interest Coverage is 5.88. Aban Offshore's value of 11.79 is 100.5% above this industry median. Based on the distribution chart, Aban Offshore ranks #708 out of 727 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Aban Offshore has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Aban Offshore's Interest Coverage compare to NE and RIG?
According to the Oil & Gas industry distribution chart, Aban Offshore ranks #708 out of 727 companies for Interest Coverage. This places Aban Offshore in the lower half of its industry. The industry median Interest Coverage is 5.88. Aban Offshore's value of 11.79 is 100.5% above this benchmark. Historically, Aban Offshore's own Interest Coverage has ranged from 0.04 to 1.02 over the past decade. While the company's 10-year median is 0.29 vs. the industry median of 5.88, Aban Offshore 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.88, based on 727 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. Aban Offshore's current Interest Coverage of 11.79 is 100.5% 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 Aban Offshore and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aban Offshore's current Interest Coverage is 11.79, which is 3966% above median its own 10-year median of 0.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aban Offshore stock overvalued right now?
Based on GuruFocus' analysis, Aban Offshore (NSE:ABAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹45.63, compared to a current price of ₹15.24 — trading 66.6% below its estimated fair value. The current Interest Coverage is 11.79, which is 3966% above median its 10-year median of 0.29 and 100.5% above the Oil & Gas industry median of 5.88. Aban Offshore's overall GF Score™ is 43/100 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 Aban Offshore (NSE:ABAN), the current Interest Coverage is 11.79 as of Dec. 2025. 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 Aban Offshore (NSE:ABAN) Overvalued in 2026?
Based on GuruFocus' analysis, Aban Offshore stock appears to be undervalued.
The current stock price of ₹15.24 is trading 66.6% below its estimated GF Value™ of ₹45.63.
GuruFocus considers Aban Offshore to be Possible Value Trap.
Key valuation signals for NSE:ABAN:
Interest Coverage: 11.79 (3966% above median its 10-year median of 0.29)
GF Value™: ₹45.63 vs. price of ₹15.24 (66.6% below fair value)
Industry Position: 100.5% above the Oil & Gas median (#708 of 727)
No single metric tells the full story. See the NSE:ABAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aban Offshore Ltd is an Indian company engaged in the business of providing offshore drilling and production services to companies engaged in the exploration, development, and production of oil and gas both in domestic and international markets. It generates maximum revenue from drilling services. It serves Southeast Asia, South Asia, Latin America, West Africa, and the Middle East.
43GF Score
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