GHCL (NSE:GHCL) Interest Coverage: 79.21 (As of Mar. 2026) — 619% Above Median


NSE:GHCL GHCL Ltd NSE:GHCL
77 GF Score
Price ₹436.30
GF Value ₹535.60
Valuation Modestly Undervalued
! 1 Warning Sign
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What is GHCL Interest Coverage?

GHCL NSE:GHCL -0.26% 77 Interest Coverage is 79.21 as of Mar. 2026, which is 619% above its 10-year median of 11.01. GuruFocus rates NSE:GHCL with a GF Score™ of 77/100 and a GF Value™ of ₹535.60 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,234 Chemicals companies, GHCL ranks better than 80.88% 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. GHCL's Operating Income for the three months ended in Mar. 2026 was ₹1,481 Mil. GHCL's Interest Expense for the three months ended in Mar. 2026 was ₹-19 Mil. GHCL's interest coverage for the quarter that ended in Mar. 2026 was 79.21. 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. GHCL Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for GHCL's Interest Coverage or its related term are showing as below:

NSE:GHCL' s Interest Coverage Range Over the Past 10 Years
Min: 4.25   Med: 11.01   Max: 67.85
Current: 64.14


NSE:GHCL's Interest Coverage is ranked better than
80.88% of 1234 companies
in the Chemicals industry
Industry Median: 10.18 vs NSE:GHCL: 64.14

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


GHCL  (NSE:GHCL) 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 .


GHCL Interest Coverage Related Terms


GHCL Interest Coverage Historical Data

* Premium members only.

The historical data trend for GHCL'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.

GHCL Interest Coverage Chart

GHCL Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.15 40.91 31.30 48.64 67.85

GHCL Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.55 71.25 61.43 49.20 79.21

NSE:GHCL vs DOW: Interest Coverage Comparison

For the Chemicals subindustry, GHCL'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.


GHCL Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, GHCL's Interest Coverage distribution charts can be found below:

* The bar in red indicates where GHCL's Interest Coverage falls into.


NSE:GHCL
77GF Score
GHCL Ltd NSE:GHCL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

GHCL 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

GHCL's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, GHCL's Interest Expense was ₹-85 Mil. Its Operating Income was ₹5,787 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹530 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*5787.2/-85.3
=67.85

GHCL's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, GHCL's Interest Expense was ₹-19 Mil. Its Operating Income was ₹1,481 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹530 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1481.3/-18.7
=79.21

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 79.21 mean?
GHCL (NSE:GHCL) has a Interest Coverage of 79.21 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on GHCL and its competitors. This is 619% above median its historical median of 11.01. Over the past decade, GHCL's Interest Coverage has ranged from 4.25 to 67.85. According to the industry distribution chart, GHCL ranks #236 out of 1234 companies in the Chemicals industry, placing it in the top 19.1%.
Is GHCL's Interest Coverage too high?
GHCL's current Interest Coverage of 79.21 is 619% above median its 10-year median of 11.01. Over the past 10 years, this metric has ranged from a low of 4.25 to a high of 67.85. The Chemicals industry median Interest Coverage is 10.18. GHCL's value of 79.21 is 678.1% above this industry median. Based on the distribution chart, GHCL ranks #236 out of 1234 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, GHCL has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GHCL's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, GHCL ranks #236 out of 1234 companies for Interest Coverage. This places GHCL in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.18. GHCL's value of 79.21 is 678.1% above this benchmark. Historically, GHCL's own Interest Coverage has ranged from 4.25 to 67.85 over the past decade. While the company's 10-year median is 11.01 vs. the industry median of 10.18, GHCL 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. GHCL's current Interest Coverage of 79.21 is 678.1% 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 GHCL and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GHCL's current Interest Coverage is 79.21, which is 619% above median its own 10-year median of 11.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GHCL stock overvalued right now?
Based on GuruFocus' analysis, GHCL (NSE:GHCL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹535.60, compared to a current price of ₹436.30 — trading 18.5% below its estimated fair value. The current Interest Coverage is 79.21, which is 619% above median its 10-year median of 11.01 and 678.1% above the Chemicals industry median of 10.18. GHCL's overall GF Score™ is 77/100 with 1 warning sign 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 GHCL (NSE:GHCL), the current Interest Coverage is 79.21 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 GHCL (NSE:GHCL) Overvalued in 2026?

Based on GuruFocus' analysis, GHCL stock appears to be undervalued. The current stock price of ₹436.30 is trading 18.5% below its estimated GF Value™ of ₹535.60. GuruFocus considers GHCL to be Modestly Undervalued.

Key valuation signals for NSE:GHCL:

  • Interest Coverage: 79.21 (619% above median its 10-year median of 11.01)
  • GF Value™: ₹535.60 vs. price of ₹436.30 (18.5% below fair value)
  • GF Score™: 77/100 with 1 warning sign
  • Industry Position: 678.1% above the Chemicals median (#236 of 1234)

No single metric tells the full story. See the NSE:GHCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


GHCL Business Description

Other Exchanges 500171:India
Address Institutional Area, Sector - 1, B-38, GHCL House, Noida, IND, 201301
GHCL Ltd is engaged in the business of Manufacturing & trading of Inorganic Chemicals (mainly manufacture and sale of Soda Ash). The Company's operations pertain to one segment i.e. Inorganic Chemicals. The company has presence in India, and Outside India. The company has presence in India. The company predominantly utilises seawater for its operations, thereby minimising dependence on freshwater resources and avoiding any impact on local community water availability.
77GF Score

Get the complete analysis for NSE:GHCL

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹436.30
Price
₹535.60
GF Value