InterGlobe AviationNSE:INDIGO -0.33%88 Interest Coverage is 1.90 as of Mar. 2026, which is 12% below its 10-year median of 2.16. GuruFocus rates NSE:INDIGO with a GF Score™ of 88/100 and a GF Value™ of ₹5,346.32 (Fairly Valued). The stock has 5 warning signs investors should review. Among 839 Transportation companies, InterGlobe Aviation ranks worse than 82.6% 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. InterGlobe Aviation's
Operating Income
for the
three
months ended in Mar. 2026 was ₹28,134 Mil. InterGlobe Aviation's Interest Expense for the
three
months ended in Mar. 2026 was ₹-14,846 Mil.
InterGlobe Aviation's interest coverage for the quarter that ended in Mar. 2026 was 1.90.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for InterGlobe Aviation's Interest Coverage or its related term are showing as below:
NSE:INDIGO'
s Interest Coverage Range Over the Past 10 Years
Min: 0.9 Med: 2.16 Max: 7.86
Current: 1.72
NSE:INDIGO's Interest Coverage is ranked worse than 82.6% of 839
companies
in the Transportation industry
Industry Median: 5.68
vs NSE:INDIGO: 1.72
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 .
InterGlobe Aviation Interest Coverage Related Terms
InterGlobe Aviation Interest Coverage Historical Data
* Premium members only.
The historical data trend for InterGlobe Aviation'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:INDIGO vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, InterGlobe Aviation'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.
InterGlobe Aviation Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, InterGlobe Aviation's Interest Coverage distribution charts can be found below:
* The bar in red indicates where InterGlobe Aviation'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.
InterGlobe Aviation (NSE:INDIGO) has a Interest Coverage of 1.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on InterGlobe Aviation and its competitors. This is 12% below median its historical median of 2.16. Over the past decade, InterGlobe Aviation's Interest Coverage has ranged from 0.90 to 7.86. According to the industry distribution chart, InterGlobe Aviation ranks #693 out of 839 companies in the Transportation industry, placing it in the top 82.6%.
Is InterGlobe Aviation's Interest Coverage too high?
InterGlobe Aviation's current Interest Coverage of 1.90 is 12% below median its 10-year median of 2.16. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 7.86. The Transportation industry median Interest Coverage is 5.68. InterGlobe Aviation's value of 1.90 is 66.5% below this industry median. Based on the distribution chart, InterGlobe Aviation ranks #693 out of 839 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, InterGlobe Aviation has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does InterGlobe Aviation's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, InterGlobe Aviation ranks #693 out of 839 companies for Interest Coverage. This places InterGlobe Aviation in the lower half of its industry. The industry median Interest Coverage is 5.68. InterGlobe Aviation's value of 1.90 is 66.5% below this benchmark. Historically, InterGlobe Aviation's own Interest Coverage has ranged from 0.90 to 7.86 over the past decade. While the company's 10-year median is 2.16 vs. the industry median of 5.68, InterGlobe Aviation 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 Transportation company?
The median Interest Coverage among Transportation companies is 5.68, based on 839 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. InterGlobe Aviation's current Interest Coverage of 1.90 is 66.5% 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 InterGlobe Aviation and its competitors. For the Transportation industry, the median Interest Coverage is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterGlobe Aviation's current Interest Coverage is 1.90, which is 12% below median its own 10-year median of 2.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterGlobe Aviation stock overvalued right now?
Based on GuruFocus' analysis, InterGlobe Aviation (NSE:INDIGO) is currently considered Fairly Valued. The stock's GF Value™ is ₹5,346.32, compared to a current price of ₹5,408.50 — trading 1.2% above its estimated fair value. The current Interest Coverage is 1.90, which is 12% below median its 10-year median of 2.16 and 66.5% below the Transportation industry median of 5.68. InterGlobe Aviation's overall GF Score™ is 88/100 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 InterGlobe Aviation (NSE:INDIGO), the current Interest Coverage is 1.90 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 InterGlobe Aviation (NSE:INDIGO) Overvalued in 2026?
Based on GuruFocus' analysis, InterGlobe Aviation stock appears to be overvalued.
The current stock price of ₹5,408.50 is trading 1.2% above its estimated GF Value™ of ₹5,346.32.
GuruFocus considers InterGlobe Aviation to be Fairly Valued.
Key valuation signals for NSE:INDIGO:
Interest Coverage: 1.90 (12% below median its 10-year median of 2.16)
GF Value™: ₹5,346.32 vs. price of ₹5,408.50 (1.2% above fair value)
Industry Position: 66.5% below the Transportation median (#693 of 839)
No single metric tells the full story. See the NSE:INDIGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InterGlobe Aviation Ltd is an airline service provider based in India. The company serves as a low-cost carrier through its Indigo brand. The company caters to its customers through an official website and the IndigoGo App, enabling them to book airline tickets and travel packages. The segments of the company are Air transportation services and Other income. The company earns its revenue predominantly through passenger ticket sales of the domestic airline operation.
88GF Score
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