Bharat ForgeNSE:BHARATFORG -0.57%83 Interest Coverage is 6.20 as of Mar. 2026, which is 10% above its 10-year median of 5.62. GuruFocus rates NSE:BHARATFORG with a GF Score™ of 83/100 and a GF Value™ of ₹1,458.28 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Bharat Forge ranks worse than 57.45% 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. Bharat Forge's
Operating Income
for the
three
months ended in Mar. 2026 was ₹5,231 Mil. Bharat Forge's Interest Expense for the
three
months ended in Mar. 2026 was ₹-844 Mil.
Bharat Forge's interest coverage for the quarter that ended in Mar. 2026 was 6.20.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Bharat Forge's Interest Coverage or its related term are showing as below:
NSE:BHARATFORG'
s Interest Coverage Range Over the Past 10 Years
Min: 2.86 Med: 5.62 Max: 14.98
Current: 6.05
NSE:BHARATFORG's Interest Coverage is ranked worse than 57.45% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs NSE:BHARATFORG: 6.05
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 .
Bharat Forge Interest Coverage Related Terms
Bharat Forge Interest Coverage Historical Data
* Premium members only.
The historical data trend for Bharat Forge'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:BHARATFORG vs ORLY, AZO: Interest Coverage Comparison
For the Auto Parts subindustry, Bharat Forge'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.
Bharat Forge Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Bharat Forge's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Bharat Forge'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.
Bharat Forge (NSE:BHARATFORG) has a Interest Coverage of 6.20 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bharat Forge and its competitors. This is 10% above median its historical median of 5.62. Over the past decade, Bharat Forge's Interest Coverage has ranged from 2.86 to 14.98. According to the industry distribution chart, Bharat Forge ranks #613 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 57.5%.
Is Bharat Forge's Interest Coverage too high?
Bharat Forge's current Interest Coverage of 6.20 is 10% above median its 10-year median of 5.62. Over the past 10 years, this metric has ranged from a low of 2.86 to a high of 14.98. The Vehicles & Parts industry median Interest Coverage is 8.31. Bharat Forge's value of 6.20 is 25.4% below this industry median. Based on the distribution chart, Bharat Forge ranks #613 out of 1067 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Bharat Forge has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bharat Forge's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Bharat Forge ranks #613 out of 1067 companies for Interest Coverage. This places Bharat Forge in the lower half of its industry. The industry median Interest Coverage is 8.31. Bharat Forge's value of 6.20 is 25.4% below this benchmark. Historically, Bharat Forge's own Interest Coverage has ranged from 2.86 to 14.98 over the past decade. While the company's 10-year median is 5.62 vs. the industry median of 8.31, Bharat Forge 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 a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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. Bharat Forge's current Interest Coverage of 6.20 is 25.4% 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 Bharat Forge and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharat Forge's current Interest Coverage is 6.20, which is 10% above median its own 10-year median of 5.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Forge stock overvalued right now?
Based on GuruFocus' analysis, Bharat Forge (NSE:BHARATFORG) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,458.28, compared to a current price of ₹2,136.70 — trading 46.5% above its estimated fair value. The current Interest Coverage is 6.20, which is 10% above median its 10-year median of 5.62 and 25.4% below the Vehicles & Parts industry median of 8.31. Bharat Forge's overall GF Score™ is 83/100 with 7 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 Bharat Forge (NSE:BHARATFORG), the current Interest Coverage is 6.20 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 Bharat Forge (NSE:BHARATFORG) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Forge stock appears to be overvalued.
The current stock price of ₹2,136.70 is trading 46.5% above its estimated GF Value™ of ₹1,458.28.
GuruFocus considers Bharat Forge to be Significantly Overvalued.
Key valuation signals for NSE:BHARATFORG:
Interest Coverage: 6.20 (10% above median its 10-year median of 5.62)
GF Value™: ₹1,458.28 vs. price of ₹2,136.70 (46.5% above fair value)
Industry Position: 25.4% below the Vehicles & Parts median (#613 of 1067)
No single metric tells the full story. See the NSE:BHARATFORG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Forge Ltd is an Indian multinational engaged in metal forging across different industries. The company has the following business units: automotive, power, oil and gas, construction and mining, rail, marine and aerospace. The automotive unit offers products including powertrain components, machines crankshafts, connecting rods, and piston. The Power business unit manufactures components for thermal, wind, hydro and nuclear applications. The Company divides its business into three reporting segments: "Forgings", "Defense", and "Others". The Forgings segment focuses on manufacturing forged components, while the Defense segment centers around defense-related activities. The "Others" segment encompasses all other businesses not covered by Forgings and Defense.
83GF Score
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