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BirlaNSE:BIRLACORPN +0.62%78 Interest Coverage is 2.97 as of Jun. 2026, which is 35% above its 10-year median of 2.20. GuruFocus rates NSE:BIRLACORPN with a GF Score™ of 78/100 and a GF Value™ of ₹1,328.44 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 305 Building Materials companies, Birla ranks worse than 66.89% 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. Birla's
Operating Income
for the
three
months ended in Jun. 2026 was ₹2,000 Mil. Birla's Interest Expense for the
three
months ended in Jun. 2026 was ₹-672 Mil.
Birla's interest coverage for the quarter that ended in Jun. 2026 was 2.97.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Birla's Interest Coverage or its related term are showing as below:
NSE:BIRLACORPN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.82 Med: 2.2 Max: 3.63
Current: 3.47
NSE:BIRLACORPN's Interest Coverage is ranked worse than 66.89% of 305
companies
in the Building Materials industry
Industry Median: 6.81
vs NSE:BIRLACORPN: 3.47
Birla (NSE:BIRLACORPN) 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 .
Birla Interest Coverage Related Terms
Birla Interest Coverage Historical Data
* Premium members only.
The historical data trend for Birla'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:BIRLACORPN vs CRH, VMC, MLM: Interest Coverage Comparison
For the Building Materials subindustry, Birla'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.
Birla Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Birla's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Birla'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.
Birla (NSE:BIRLACORPN) has a Interest Coverage of 2.97 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Birla and its competitors. This is 35% above median its historical median of 2.20. Over the past decade, Birla's Interest Coverage has ranged from 0.82 to 3.63. According to the industry distribution chart, Birla ranks #204 out of 305 companies in the Building Materials industry, placing it in the top 66.9%.
Is Birla's Interest Coverage too high?
Birla's current Interest Coverage of 2.97 is 35% above median its 10-year median of 2.20. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 3.63. The Building Materials industry median Interest Coverage is 6.81. Birla's value of 2.97 is 56.4% below this industry median. Based on the distribution chart, Birla ranks #204 out of 305 companies in the Building Materials industry, which is below the industry midpoint. Overall, Birla has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Birla's Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, Birla ranks #204 out of 305 companies for Interest Coverage. This places Birla in the lower half of its industry. The industry median Interest Coverage is 6.81. Birla's value of 2.97 is 56.4% below this benchmark. Historically, Birla's own Interest Coverage has ranged from 0.82 to 3.63 over the past decade. While the company's 10-year median is 2.20 vs. the industry median of 6.81, Birla 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 6.81, based on 305 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. Birla's current Interest Coverage of 2.97 is 56.4% 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 Birla and its competitors. For the Building Materials industry, the median Interest Coverage is 6.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Birla's current Interest Coverage is 2.97, which is 35% above median its own 10-year median of 2.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Birla stock overvalued right now?
Based on GuruFocus' analysis, Birla (NSE:BIRLACORPN) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,328.44, compared to a current price of ₹890.50 — trading 33% below its estimated fair value. The current Interest Coverage is 2.97, which is 35% above median its 10-year median of 2.20 and 56.4% below the Building Materials industry median of 6.81. Birla's overall GF Score™ is 78/100 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 Birla (NSE:BIRLACORPN), the current Interest Coverage is 2.97 as of Jun. 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 Birla (NSE:BIRLACORPN) Overvalued in 2026?
Based on GuruFocus' analysis, Birla stock appears to be undervalued.
The current stock price of ₹890.50 is trading 33% below its estimated GF Value™ of ₹1,328.44.
GuruFocus considers Birla to be Significantly Undervalued.
Key valuation signals for NSE:BIRLACORPN:
Interest Coverage: 2.97 (35% above median its 10-year median of 2.20)
GF Value™: ₹1,328.44 vs. price of ₹890.50 (33% below fair value)
Industry Position: 56.4% below the Building Materials median (#204 of 305)
No single metric tells the full story. See the NSE:BIRLACORPN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Birla Corp Ltd is a multi-product manufacturing company. The firm's operating segments are Jute, Cement, and others. Its products include ordinary portland cement, portland pozzolana cement, and portland slag cement among others. The company generates a majority of its revenue from the Cement segment. Geographically, it derives its key revenue from India. The firm's brand profile consists of MP Birla Cement Rakshak, MP Birla Cement Samrat, MP Birla Cement Ultimate, and others.
78GF Score
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