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. Hindustan Petroleum's
Operating Income
for the
three
months ended in Mar. 2026 was ₹67,540 Mil. Hindustan Petroleum's Interest Expense for the
three
months ended in Mar. 2026 was ₹-10,204 Mil.
Hindustan Petroleum's interest coverage for the quarter that ended in Mar. 2026 was 6.62.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hindustan Petroleum's Interest Coverage or its related term are showing as below:
NSE:HINDPETRO'
s Interest Coverage Range Over the Past 10 Years
Min: 3.09 Med: 7.85 Max: 16.35
Current: 8.25
NSE:HINDPETRO's Interest Coverage is ranked better than 58.18% of 727
companies
in the Oil & Gas industry
Industry Median: 5.88
vs NSE:HINDPETRO: 8.25
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 .
Hindustan Petroleum Interest Coverage Related Terms
Hindustan Petroleum Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hindustan Petroleum'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:HINDPETRO vs VLO, MPC, PSX: Interest Coverage Comparison
For the Oil & Gas Refining & Marketing subindustry, Hindustan Petroleum'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.
Hindustan Petroleum Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hindustan Petroleum's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hindustan Petroleum'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.
Hindustan Petroleum (NSE:HINDPETRO) has a Interest Coverage of 6.62 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hindustan Petroleum and its competitors. This is 16% below median its historical median of 7.85. Over the past decade, Hindustan Petroleum's Interest Coverage has ranged from 3.09 to 16.35. According to the industry distribution chart, Hindustan Petroleum ranks #304 out of 727 companies in the Oil & Gas industry, placing it in the top 41.8%.
Is Hindustan Petroleum's Interest Coverage too high?
Hindustan Petroleum's current Interest Coverage of 6.62 is 16% below median its 10-year median of 7.85. Over the past 10 years, this metric has ranged from a low of 3.09 to a high of 16.35. The Oil & Gas industry median Interest Coverage is 5.88. Hindustan Petroleum's value of 6.62 is 12.6% above this industry median. Based on the distribution chart, Hindustan Petroleum ranks #304 out of 727 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Hindustan Petroleum has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Petroleum's Interest Coverage compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Hindustan Petroleum ranks #304 out of 727 companies for Interest Coverage. This puts Hindustan Petroleum in the upper half of its industry. The industry median Interest Coverage is 5.88. Hindustan Petroleum's value of 6.62 is 12.6% above this benchmark. Historically, Hindustan Petroleum's own Interest Coverage has ranged from 3.09 to 16.35 over the past decade. While the company's 10-year median is 7.85 vs. the industry median of 5.88, Hindustan Petroleum 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 an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.88, based on 727 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. Hindustan Petroleum's current Interest Coverage of 6.62 is 12.6% 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 Hindustan Petroleum and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Petroleum's current Interest Coverage is 6.62, which is 16% below median its own 10-year median of 7.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Petroleum (NSE:HINDPETRO) is currently considered Fairly Valued. The stock's GF Value™ is ₹387.46, compared to a current price of ₹400.35 — trading 3.3% above its estimated fair value. The current Interest Coverage is 6.62, which is 16% below median its 10-year median of 7.85 and 12.6% above the Oil & Gas industry median of 5.88. Hindustan Petroleum's overall GF Score™ is 84/100 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 Hindustan Petroleum (NSE:HINDPETRO), the current Interest Coverage is 6.62 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 Hindustan Petroleum (NSE:HINDPETRO) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Petroleum stock appears to be overvalued.
The current stock price of ₹400.35 is trading 3.3% above its estimated GF Value™ of ₹387.46.
GuruFocus considers Hindustan Petroleum to be Fairly Valued.
Key valuation signals for NSE:HINDPETRO:
Interest Coverage: 6.62 (16% below median its 10-year median of 7.85)
GF Value™: ₹387.46 vs. price of ₹400.35 (3.3% above fair value)
Industry Position: 12.6% above the Oil & Gas median (#304 of 727)
No single metric tells the full story. See the NSE:HINDPETRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Petroleum Corp Ltd. (HPCL) is an Indian government enterprise that refines crude oil and manufactures petroleum-based products. The company operates a diverse group of refineries that process several grades of lubes, specialties, and greases along with a variety of petroleum products. HPCL also controls an extensive network of pipelines in India that transport a variety of hydrocarbon-based products. In tandem with its host of pipelines, marketing and distribution efforts are carried out through a group of terminals, service stations, bottling plants, marketing offices, and other facilities. Hindustan's products are sold throughout India. The business is divided into downstream and other operations, with downstream activities generating the maximum revenue.
84GF Score
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