Adani PowerNSE:ADANIPOWER -1.23%68 Interest Coverage is 3.71 as of Mar. 2026, which is 139% above its 10-year median of 1.55. GuruFocus rates NSE:ADANIPOWER with a GF Score™ of 68/100 and a GF Value™ of ₹133.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 321 Utilities - Independent Power Producers companies, Adani Power ranks better than 64.8% 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 Power's
Operating Income
for the
three
months ended in Mar. 2026 was ₹35,852 Mil. Adani Power's Interest Expense for the
three
months ended in Mar. 2026 was ₹-9,673 Mil.
Adani Power's interest coverage for the quarter that ended in Mar. 2026 was 3.71.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Adani Power's Interest Coverage or its related term are showing as below:
NSE:ADANIPOWER'
s Interest Coverage Range Over the Past 10 Years
Min: 0.57 Med: 1.55 Max: 5.72
Current: 4.53
NSE:ADANIPOWER's Interest Coverage is ranked better than 64.8% of 321
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.77
vs NSE:ADANIPOWER: 4.53
Adani Power (NSE:ADANIPOWER) 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 Power Interest Coverage Related Terms
Adani Power Interest Coverage Historical Data
* Premium members only.
The historical data trend for Adani Power'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:ADANIPOWER vs CEG, VST, NRG: Interest Coverage Comparison
For the Utilities - Independent Power Producers subindustry, Adani Power'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 Power Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Adani Power's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Adani Power'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.
Adani Power (NSE:ADANIPOWER) has a Interest Coverage of 3.71 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Adani Power and its competitors. This is 139% above median its historical median of 1.55. Over the past decade, Adani Power's Interest Coverage has ranged from 0.57 to 5.72. According to the industry distribution chart, Adani Power ranks #113 out of 321 companies in the Utilities - Independent Power Producers industry, placing it in the top 35.2%.
Is Adani Power's Interest Coverage too high?
Adani Power's current Interest Coverage of 3.71 is 139% above median its 10-year median of 1.55. Over the past 10 years, this metric has ranged from a low of 0.57 to a high of 5.72. The Utilities - Independent Power Producers industry median Interest Coverage is 2.77. Adani Power's value of 3.71 is 33.9% above this industry median. Based on the distribution chart, Adani Power ranks #113 out of 321 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Adani Power has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adani Power's Interest Coverage compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Adani Power ranks #113 out of 321 companies for Interest Coverage. This puts Adani Power in the upper half of its industry. The industry median Interest Coverage is 2.77. Adani Power's value of 3.71 is 33.9% above this benchmark. Historically, Adani Power's own Interest Coverage has ranged from 0.57 to 5.72 over the past decade. While the company's 10-year median is 1.55 vs. the industry median of 2.77, Adani Power 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 Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.77, based on 321 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 Power's current Interest Coverage of 3.71 is 33.9% 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 Adani Power and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adani Power's current Interest Coverage is 3.71, which is 139% above median its own 10-year median of 1.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adani Power stock overvalued right now?
Based on GuruFocus' analysis, Adani Power (NSE:ADANIPOWER) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹133.27, compared to a current price of ₹221.79 — trading 66.4% above its estimated fair value. The current Interest Coverage is 3.71, which is 139% above median its 10-year median of 1.55 and 33.9% above the Utilities - Independent Power Producers industry median of 2.77. Adani Power's overall GF Score™ is 68/100 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 Adani Power (NSE:ADANIPOWER), the current Interest Coverage is 3.71 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 Power (NSE:ADANIPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Adani Power stock appears to be overvalued.
The current stock price of ₹221.79 is trading 66.4% above its estimated GF Value™ of ₹133.27.
GuruFocus considers Adani Power to be Significantly Overvalued.
Key valuation signals for NSE:ADANIPOWER:
Interest Coverage: 3.71 (139% above median its 10-year median of 1.55)
GF Value™: ₹133.27 vs. price of ₹221.79 (66.4% above fair value)
Industry Position: 33.9% above the Utilities - Independent Power Producers median (#113 of 321)
No single metric tells the full story. See the NSE:ADANIPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adani Power Ltd sells power under long term / medium term / short term Power Purchase Agreement (PPAs), Supplemental Power Purchase Agreement (SPPAs), on merchant basis and also engaged in trading, investment and other business activities incidental and ancillary to power generation and sales. Its business activities revolve around development and operations of power generation plants including related activities and trading, investment and other activities as two segments. The company generates majority of revenue from Power Generation and related activities. It has presence Within India, and Outside India (Bangladesh). The company generates majority of revenue from India.
68GF Score
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