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. Allied Digital Services's
Operating Income
for the
three
months ended in Mar. 2026 was ₹-152 Mil. Allied Digital Services's Interest Expense for the
three
months ended in Mar. 2026 was ₹-35 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Allied Digital Services's Interest Coverage or its related term are showing as below:
NSE:ADSL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.64 Med: 4.69 Max: 21.26
Current: 3.08
NSE:ADSL's Interest Coverage is ranked worse than 85.68% of 1704
companies
in the Software industry
Industry Median: 24.75
vs NSE:ADSL: 3.08
Allied Digital Services (NSE:ADSL) 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 .
Allied Digital Services Interest Coverage Related Terms
Allied Digital Services Interest Coverage Historical Data
* Premium members only.
The historical data trend for Allied Digital Services'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:ADSL vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Allied Digital Services'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.
Allied Digital Services Interest Coverage vs Software Industry
For the Software industry and Technology sector, Allied Digital Services's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Allied Digital Services's Interest Coverage falls into.
Allied Digital Services 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:
Allied Digital Services did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Allied Digital Services (NSE:ADSL) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Allied Digital Services and its competitors. Over the past decade, Allied Digital Services' Interest Coverage has ranged from 1.64 to 21.26. According to the industry distribution chart, Allied Digital Services ranks #1460 out of 1704 companies in the Software industry, placing it in the top 85.7%.
Is Allied Digital Services' Interest Coverage too high?
Allied Digital Services' current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 21.26. Based on the distribution chart, Allied Digital Services ranks #1460 out of 1704 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Allied Digital Services has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allied Digital Services' Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Allied Digital Services ranks #1460 out of 1704 companies for Interest Coverage. This places Allied Digital Services in the lower half of its industry. The industry median Interest Coverage is 24.75. Historically, Allied Digital Services' own Interest Coverage has ranged from 1.64 to 21.26 over the past decade. 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 Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,704 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. 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 Allied Digital Services and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Digital Services's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Digital Services stock overvalued right now?
Based on GuruFocus' analysis, Allied Digital Services (NSE:ADSL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹213.89, compared to a current price of ₹124.63 — trading 41.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Allied Digital Services' overall GF Score™ is 77/100 with 4 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 Allied Digital Services (NSE:ADSL), the current Interest Coverage is 0 (At Loss) 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 Allied Digital Services (NSE:ADSL) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Digital Services stock appears to be undervalued.
The current stock price of ₹124.63 is trading 41.7% below its estimated GF Value™ of ₹213.89.
GuruFocus considers Allied Digital Services to be Significantly Undervalued.
Key valuation signals for NSE:ADSL:
Interest Coverage: 0 (At Loss)
GF Value™: ₹213.89 vs. price of ₹124.63 (41.7% below fair value)
No single metric tells the full story. See the NSE:ADSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Digital Services Ltd is an Indian-based information technology service and solutions offering company. The company provides a wide range of information technology and consultancy services such as infrastructure services, end-user IT support, IT asset lifecycle, enterprise applications, and integrated solutions. The company has two reportable segments of its business namely: Services and Solutions, of which maximum revenue is derived from Services segment. Geographically the business presence of the firm is seen across the region of India, the United States, and the UK.
77GF Score
Get the complete analysis for NSE:ADSL
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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