ACCNSE:ACC -0.46%89 Interest Coverage is 12.81 as of Mar. 2026, which is 68% below its 10-year median of 39.49. GuruFocus rates NSE:ACC with a GF Score™ of 89/100 and a GF Value™ of ₹2,667.37 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 307 Building Materials companies, ACC ranks better than 70.03% 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. ACC's
Operating Income
for the
three
months ended in Mar. 2026 was ₹3,470 Mil. ACC's Interest Expense for the
three
months ended in Mar. 2026 was ₹-271 Mil.
ACC's interest coverage for the quarter that ended in Mar. 2026 was 12.81.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ACC's Interest Coverage or its related term are showing as below:
NSE:ACC'
s Interest Coverage Range Over the Past 10 Years
Min: 12.76 Med: 39.49 Max: 75.83
Current: 16.35
NSE:ACC's Interest Coverage is ranked better than 70.03% of 307
companies
in the Building Materials industry
Industry Median: 6.63
vs NSE:ACC: 16.35
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 .
ACC Interest Coverage Related Terms
ACC Interest Coverage Historical Data
* Premium members only.
The historical data trend for ACC'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:ACC vs CRH, VMC, MLM: Interest Coverage Comparison
For the Building Materials subindustry, ACC'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.
ACC Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, ACC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ACC'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.
ACC (NSE:ACC) has a Interest Coverage of 12.81 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ACC and its competitors. This is 68% below median its historical median of 39.49. Over the past decade, ACC's Interest Coverage has ranged from 12.76 to 75.83. According to the industry distribution chart, ACC ranks #92 out of 307 companies in the Building Materials industry, placing it in the top 30%.
Is ACC's Interest Coverage too high?
ACC's current Interest Coverage of 12.81 is 68% below median its 10-year median of 39.49. Over the past 10 years, this metric has ranged from a low of 12.76 to a high of 75.83. The Building Materials industry median Interest Coverage is 6.63. ACC's value of 12.81 is 93.2% above this industry median. Based on the distribution chart, ACC ranks #92 out of 307 companies in the Building Materials industry, which is above the industry midpoint. Overall, ACC has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ACC's Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, ACC ranks #92 out of 307 companies for Interest Coverage. This puts ACC in the upper half of its industry. The industry median Interest Coverage is 6.63. ACC's value of 12.81 is 93.2% above this benchmark. Historically, ACC's own Interest Coverage has ranged from 12.76 to 75.83 over the past decade. While the company's 10-year median is 39.49 vs. the industry median of 6.63, ACC 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 6.63, based on 307 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. ACC's current Interest Coverage of 12.81 is 93.2% 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 ACC and its competitors. For the Building Materials industry, the median Interest Coverage is 6.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ACC's current Interest Coverage is 12.81, which is 68% below median its own 10-year median of 39.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ACC stock overvalued right now?
Based on GuruFocus' analysis, ACC (NSE:ACC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹2,667.37, compared to a current price of ₹1,327.20 — trading 50.2% below its estimated fair value. The current Interest Coverage is 12.81, which is 68% below median its 10-year median of 39.49 and 93.2% above the Building Materials industry median of 6.63. ACC's overall GF Score™ is 89/100 with 6 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 ACC (NSE:ACC), the current Interest Coverage is 12.81 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 ACC (NSE:ACC) Overvalued in 2026?
Based on GuruFocus' analysis, ACC stock appears to be undervalued.
The current stock price of ₹1,327.20 is trading 50.2% below its estimated GF Value™ of ₹2,667.37.
GuruFocus considers ACC to be Possible Value Trap.
Key valuation signals for NSE:ACC:
Interest Coverage: 12.81 (68% below median its 10-year median of 39.49)
GF Value™: ₹2,667.37 vs. price of ₹1,327.20 (50.2% below fair value)
Industry Position: 93.2% above the Building Materials median (#92 of 307)
No single metric tells the full story. See the NSE:ACC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ACC Ltd is to manufacture and market cement, ready mix concrete, and cement-related products. Its products include Cement, ready-to-mix concrete, solutions, and products, Solutions and Green Building Centre, and others. Its segments are Cement and ancillary services generate maximum revenue - Cement is a product obtained from clinker resulting from mixing raw materials such as limestone, clay, iron ore, fly ash, bauxite, etc., in determined ratios. Clinker is then mixed with a setting regulator (generally gypsum), ground together, and used in construction activities. Ready Mix Concrete is concrete manufactured in a batch plant, according to a set engineered mix design, and used in construction activities.
89GF Score
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