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Arabian PetroleumNSE:ARABIAN +4.27%66 Interest Coverage is 3.87 as of Mar. 2026, which is 14% below its 10-year median of 4.50. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 740 Oil & Gas companies, Arabian Petroleum ranks worse than 57.97% 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. Arabian Petroleum's
Operating Income
for the
six
months ended in Mar. 2026 was ₹78 Mil. Arabian Petroleum's Interest Expense for the
six
months ended in Mar. 2026 was ₹0 Mil.
Arabian Petroleum's interest coverage for the quarter that ended in Mar. 2026 was 3.87.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Arabian Petroleum's Interest Coverage or its related term are showing as below:
NSE:ARABIAN'
s Interest Coverage Range Over the Past 10 Years
Min: 3.2 Med: 4.5 Max: 4.98
Current: 4.59
NSE:ARABIAN's Interest Coverage is ranked worse than 57.97% of 740
companies
in the Oil & Gas industry
Industry Median: 6.405
vs NSE:ARABIAN: 4.59
Arabian Petroleum (NSE:ARABIAN) 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 .
Arabian Petroleum Interest Coverage Related Terms
Arabian Petroleum Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arabian Petroleum'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:ARABIAN vs MPC, VLO, PSX: Interest Coverage Comparison
For the Oil & Gas Refining & Marketing subindustry, Arabian Petroleum'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.
Arabian Petroleum Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Petroleum's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arabian Petroleum'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:
GuruFocus does not calculate Arabian Petroleum's interest coverage with the available data.
* 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.
Arabian Petroleum (NSE:ARABIAN) has a Interest Coverage of 3.87 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arabian Petroleum and its competitors. This is 14% below median its historical median of 4.50. Over the past decade, Arabian Petroleum's Interest Coverage has ranged from 3.20 to 4.98. According to the industry distribution chart, Arabian Petroleum ranks #429 out of 740 companies in the Oil & Gas industry, placing it in the top 58%.
Is Arabian Petroleum's Interest Coverage too high?
Arabian Petroleum's current Interest Coverage of 3.87 is 14% below median its 10-year median of 4.50. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 4.98. The Oil & Gas industry median Interest Coverage is 6.41. Arabian Petroleum's value of 3.87 is 39.6% below this industry median. Based on the distribution chart, Arabian Petroleum ranks #429 out of 740 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Arabian Petroleum has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Petroleum's Interest Coverage compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #429 out of 740 companies for Interest Coverage. This places Arabian Petroleum in the lower half of its industry. The industry median Interest Coverage is 6.41. Arabian Petroleum's value of 3.87 is 39.6% below this benchmark. Historically, Arabian Petroleum's own Interest Coverage has ranged from 3.20 to 4.98 over the past decade. While the company's 10-year median is 4.50 vs. the industry median of 6.41, Arabian Petroleum 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 6.41, based on 740 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. Arabian Petroleum's current Interest Coverage of 3.87 is 39.6% 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 Arabian Petroleum and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current Interest Coverage is 3.87, which is 14% below median its own 10-year median of 4.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current Interest Coverage is 3.87, which is 14% below median its 10-year median of 4.50 and 39.6% below the Oil & Gas industry median of 6.41. Arabian Petroleum's overall GF Score™ is 66/100 with 2 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 Arabian Petroleum (NSE:ARABIAN), the current Interest Coverage is 3.87 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 Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued.
The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48.
GuruFocus considers Arabian Petroleum to be Possible Value Trap.
Key valuation signals for NSE:ARABIAN:
Interest Coverage: 3.87 (14% below median its 10-year median of 4.50)
GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
Industry Position: 39.6% below the Oil & Gas median (#429 of 740)
No single metric tells the full story. See the NSE:ARABIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score
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