Adani Energy SolutionsNSE:ADANIENSOL +2.19%89 Interest Coverage is 1.72 as of Mar. 2026, which is 8% above its 10-year median of 1.59. GuruFocus rates NSE:ADANIENSOL with a GF Score™ of 89/100 and a GF Value™ of ₹1,439.95 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 322 Utilities - Independent Power Producers companies, Adani Energy Solutions ranks worse than 63.66% 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. Adani Energy Solutions's
Operating Income
for the
three
months ended in Mar. 2026 was ₹16,372 Mil. Adani Energy Solutions's Interest Expense for the
three
months ended in Mar. 2026 was ₹-9,543 Mil.
Adani Energy Solutions's interest coverage for the quarter that ended in Mar. 2026 was 1.72.
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. Adani Energy Solutions Ltd interest coverage is 1.96, which is low.
The historical rank and industry rank for Adani Energy Solutions's Interest Coverage or its related term are showing as below:
NSE:ADANIENSOL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.07 Med: 1.59 Max: 3.34
Current: 1.96
NSE:ADANIENSOL's Interest Coverage is ranked worse than 63.66% of 322
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.84
vs NSE:ADANIENSOL: 1.96
Adani Energy Solutions (NSE:ADANIENSOL) Interest Coverage Explanation
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 .
Adani Energy Solutions Interest Coverage Related Terms
Adani Energy Solutions Interest Coverage Historical Data
* Premium members only.
The historical data trend for Adani Energy Solutions'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:ADANIENSOL vs CEG, VST, NRG: Interest Coverage Comparison
For the Utilities - Independent Power Producers subindustry, Adani Energy Solutions'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.
Adani Energy Solutions Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Adani Energy Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Adani Energy Solutions's Interest Coverage falls into.
Adani Energy Solutions Interest Coverage Calculation
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.
Adani Energy Solutions (NSE:ADANIENSOL) has a Interest Coverage of 1.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Adani Energy Solutions and its competitors. This is near median its historical median of 1.59. Over the past decade, Adani Energy Solutions' Interest Coverage has ranged from 1.07 to 3.34. According to the industry distribution chart, Adani Energy Solutions ranks #205 out of 322 companies in the Utilities - Independent Power Producers industry, placing it in the top 63.7%.
Is Adani Energy Solutions' Interest Coverage too high?
Adani Energy Solutions' current Interest Coverage of 1.72 is near median its 10-year median of 1.59. Over the past 10 years, this metric has ranged from a low of 1.07 to a high of 3.34. The Utilities - Independent Power Producers industry median Interest Coverage is 2.84. Adani Energy Solutions' value of 1.72 is 39.4% below this industry median. Based on the distribution chart, Adani Energy Solutions ranks #205 out of 322 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Adani Energy Solutions has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adani Energy Solutions' Interest Coverage compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Adani Energy Solutions ranks #205 out of 322 companies for Interest Coverage. This places Adani Energy Solutions in the lower half of its industry. The industry median Interest Coverage is 2.84. Adani Energy Solutions' value of 1.72 is 39.4% below this benchmark. Historically, Adani Energy Solutions' own Interest Coverage has ranged from 1.07 to 3.34 over the past decade. While the company's 10-year median is 1.59 vs. the industry median of 2.84, Adani Energy Solutions 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 an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.84, based on 322 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. Adani Energy Solutions's current Interest Coverage of 1.72 is 39.4% 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 Adani Energy Solutions and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adani Energy Solutions's current Interest Coverage is 1.72, which is near median its own 10-year median of 1.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adani Energy Solutions stock overvalued right now?
Based on GuruFocus' analysis, Adani Energy Solutions (NSE:ADANIENSOL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,439.95, compared to a current price of ₹1,654.00 — trading 14.9% above its estimated fair value. The current Interest Coverage is 1.72, which is near median its 10-year median of 1.59 and 39.4% below the Utilities - Independent Power Producers industry median of 2.84. Adani Energy Solutions' overall GF Score™ is 89/100 with 9 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 Adani Energy Solutions (NSE:ADANIENSOL), the current Interest Coverage is 1.72 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 Adani Energy Solutions (NSE:ADANIENSOL) Overvalued in 2026?
Based on GuruFocus' analysis, Adani Energy Solutions stock appears to be overvalued.
The current stock price of ₹1,654.00 is trading 14.9% above its estimated GF Value™ of ₹1,439.95.
GuruFocus considers Adani Energy Solutions to be Modestly Overvalued.
Key valuation signals for NSE:ADANIENSOL:
Interest Coverage: 1.72 (near median its 10-year median of 1.59)
GF Value™: ₹1,439.95 vs. price of ₹1,654.00 (14.9% above fair value)
Industry Position: 39.4% below the Utilities - Independent Power Producers median (#205 of 322)
No single metric tells the full story. See the NSE:ADANIENSOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adani Energy Solutions Ltd operates in India and deals in the trading of various bullions and other commodities. It has entered into business opportunities through Optical Ground Wire (OPGW) fibres on transmission lines with the ambition of expanding its telecom solutions to Telcos, Internet Service Providers, and long-distance communication operators. The commercialization of the network is carried out through leasing spare capacities to communication players. It also offers utility services related to telecommunications and fibre connectivity, and business operations include the construction and development of transmission infrastructure assets. It operates through the Transmission, Distribution, Smart Meter, Trading, and Others segments, with Distribution generating the maximum revenue.
89GF Score
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