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. Divgi TorqTransfer Systems's
Operating Income
for the
three
months ended in Mar. 2026 was ₹141 Mil. Divgi TorqTransfer Systems's Interest Expense for the
three
months ended in Mar. 2026 was ₹-1 Mil.
Divgi TorqTransfer Systems's interest coverage for the quarter that ended in Mar. 2026 was 168.12.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Divgi TorqTransfer Systems Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Divgi TorqTransfer Systems's Interest Coverage or its related term are showing as below:
NSE:DIVGIITTS'
s Interest Coverage Range Over the Past 10 Years
Min: 6.89 Med: 131.54 Max: 328.23
Current: 131.54
NSE:DIVGIITTS's Interest Coverage is ranked better than 90.35% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs NSE:DIVGIITTS: 131.54
Divgi TorqTransfer Systems (NSE:DIVGIITTS) 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 .
Divgi TorqTransfer Systems Interest Coverage Related Terms
Divgi TorqTransfer Systems Interest Coverage Historical 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.
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.
Divgi TorqTransfer Systems Interest Coverage Chart
NSE:DIVGIITTS vs ORLY, AZO: Interest Coverage Comparison
For the Auto Parts subindustry, Divgi TorqTransfer Systems'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.
Divgi TorqTransfer Systems Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Divgi TorqTransfer Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Divgi TorqTransfer Systems's Interest Coverage falls into.
Divgi TorqTransfer Systems 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:
* 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.
Divgi TorqTransfer Systems (NSE:DIVGIITTS) has a Interest Coverage of 168.12 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Divgi TorqTransfer Systems and its competitors. This is 28% above median its historical median of 131.54. Over the past decade, Divgi TorqTransfer Systems' Interest Coverage has ranged from 6.89 to 328.23. According to the industry distribution chart, Divgi TorqTransfer Systems ranks #103 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 9.7%.
Is Divgi TorqTransfer Systems' Interest Coverage too high?
Divgi TorqTransfer Systems' current Interest Coverage of 168.12 is 28% above median its 10-year median of 131.54. Over the past 10 years, this metric has ranged from a low of 6.89 to a high of 328.23. The Vehicles & Parts industry median Interest Coverage is 8.31. Divgi TorqTransfer Systems' value of 168.12 is 1923.1% above this industry median. Based on the distribution chart, Divgi TorqTransfer Systems ranks #103 out of 1067 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Divgi TorqTransfer Systems has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Divgi TorqTransfer Systems' Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Divgi TorqTransfer Systems ranks #103 out of 1067 companies for Interest Coverage. This places Divgi TorqTransfer Systems in the top 10% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.31. Divgi TorqTransfer Systems' value of 168.12 is 1923.1% above this benchmark. Historically, Divgi TorqTransfer Systems' own Interest Coverage has ranged from 6.89 to 328.23 over the past decade. While the company's 10-year median is 131.54 vs. the industry median of 8.31, Divgi TorqTransfer Systems 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 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. Divgi TorqTransfer Systems's current Interest Coverage of 168.12 is 1923.1% 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 Divgi TorqTransfer Systems 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. Divgi TorqTransfer Systems's current Interest Coverage is 168.12, which is 28% above median its own 10-year median of 131.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divgi TorqTransfer Systems stock overvalued right now?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems (NSE:DIVGIITTS) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,063.91, compared to a current price of ₹987.55 — trading 7.2% below its estimated fair value. The current Interest Coverage is 168.12, which is 28% above median its 10-year median of 131.54 and 1923.1% above the Vehicles & Parts industry median of 8.31. Divgi TorqTransfer Systems' overall GF Score™ is 78/100 with 5 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 Divgi TorqTransfer Systems (NSE:DIVGIITTS), the current Interest Coverage is 168.12 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 Divgi TorqTransfer Systems (NSE:DIVGIITTS) Overvalued in 2026?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems stock appears to be undervalued.
The current stock price of ₹987.55 is trading 7.2% below its estimated GF Value™ of ₹1,063.91.
GuruFocus considers Divgi TorqTransfer Systems to be Fairly Valued.
Key valuation signals for NSE:DIVGIITTS:
Interest Coverage: 168.12 (28% above median its 10-year median of 131.54)
GF Value™: ₹1,063.91 vs. price of ₹987.55 (7.2% below fair value)
Industry Position: 1923.1% above the Vehicles & Parts median (#103 of 1067)
No single metric tells the full story. See the NSE:DIVGIITTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system-level transfer cases, torque couplers, and dual clutch automatic transmission solutions. The Company operates only in one business segment, viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e., domestic and exports. The company gained the majority of its revenue from India, followed by the USA, Mexico, and Sweden.
78GF Score
Get the complete analysis for NSE:DIVGIITTS
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