Divi's LaboratoriesNSE:DIVISLAB +0.10%94 Interest Coverage is 135.67 as of Mar. 2026, which is 87% below its 10-year median of 1,079.95. GuruFocus rates NSE:DIVISLAB with a GF Score™ of 94/100 and a GF Value™ of ₹6,729.63 (Fairly Valued). The stock has 5 warning signs investors should review. Among 685 Drug Manufacturers companies, Divi's Laboratories ranks better than 81.31% 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. Divi's Laboratories's
Operating Income
for the
three
months ended in Mar. 2026 was ₹8,140 Mil. Divi's Laboratories's Interest Expense for the
three
months ended in Mar. 2026 was ₹-60 Mil.
Divi's Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 135.67.
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. Divi's Laboratories Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Divi's Laboratories's Interest Coverage or its related term are showing as below:
NSE:DIVISLAB'
s Interest Coverage Range Over the Past 10 Years
Min: 129.48 Med: 1079.95 Max: 9658.84
Current: 129.48
NSE:DIVISLAB's Interest Coverage is ranked better than 81.31% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs NSE:DIVISLAB: 129.48
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 .
Divi's Laboratories Interest Coverage Related Terms
Divi's Laboratories Interest Coverage Historical Data
* Premium members only.
The historical data trend for Divi's Laboratories'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Divi's Laboratories'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.
Divi's Laboratories Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Divi's Laboratories's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Divi's Laboratories'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.
Divi's Laboratories (NSE:DIVISLAB) has a Interest Coverage of 135.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Divi's Laboratories and its competitors. This is 87% below median its historical median of 1,079.95. Over the past decade, Divi's Laboratories' Interest Coverage has ranged from 129.48 to 9,658.84. According to the industry distribution chart, Divi's Laboratories ranks #128 out of 685 companies in the Drug Manufacturers industry, placing it in the top 18.7%.
Is Divi's Laboratories' Interest Coverage too high?
Divi's Laboratories' current Interest Coverage of 135.67 is 87% below median its 10-year median of 1,079.95. Over the past 10 years, this metric has ranged from a low of 129.48 to a high of 9,658.84. The Drug Manufacturers industry median Interest Coverage is 12.78. Divi's Laboratories' value of 135.67 is 961.6% above this industry median. Based on the distribution chart, Divi's Laboratories ranks #128 out of 685 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Divi's Laboratories has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Divi's Laboratories' Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Divi's Laboratories ranks #128 out of 685 companies for Interest Coverage. This places Divi's Laboratories in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.78. Divi's Laboratories' value of 135.67 is 961.6% above this benchmark. Historically, Divi's Laboratories' own Interest Coverage has ranged from 129.48 to 9,658.84 over the past decade. While the company's 10-year median is 1,079.95 vs. the industry median of 12.78, Divi's Laboratories 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Divi's Laboratories's current Interest Coverage of 135.67 is 961.6% 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 Divi's Laboratories and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Divi's Laboratories's current Interest Coverage is 135.67, which is 87% below median its own 10-year median of 1,079.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divi's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Divi's Laboratories (NSE:DIVISLAB) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,729.63, compared to a current price of ₹6,753.50 — trading 0.4% above its estimated fair value. The current Interest Coverage is 135.67, which is 87% below median its 10-year median of 1,079.95 and 961.6% above the Drug Manufacturers industry median of 12.78. Divi's Laboratories' overall GF Score™ is 94/100 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 Divi's Laboratories (NSE:DIVISLAB), the current Interest Coverage is 135.67 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 Divi's Laboratories (NSE:DIVISLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Divi's Laboratories stock appears to be overvalued.
The current stock price of ₹6,753.50 is trading 0.4% above its estimated GF Value™ of ₹6,729.63.
GuruFocus considers Divi's Laboratories to be Fairly Valued.
Key valuation signals for NSE:DIVISLAB:
Interest Coverage: 135.67 (87% below median its 10-year median of 1,079.95)
GF Value™: ₹6,729.63 vs. price of ₹6,753.50 (0.4% above fair value)
Industry Position: 961.6% above the Drug Manufacturers median (#128 of 685)
No single metric tells the full story. See the NSE:DIVISLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divi's Laboratories Ltd is a specialty and generic drug manufacturing company. It is engaged in the manufacture of Active Pharmaceutical ingredients (API), Intermediates, and Nutraceutical ingredients, with a predominance in exports. It also, through its custom synthesis, supports pharma companies for their patented products business from gram-scale requirements for clinical trials to launch, as well as late-life cycle management. Geographically, the company derives maximum revenue from Europe, and the rest from America, India, Asia (excluding India), and the Rest of the world.
94GF Score
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