Indo Farm EquipmentNSE:INDOFARM -0.13%36 Interest Coverage is 3.63 as of Mar. 2026, which is 82% above its 10-year median of 1.99. GuruFocus rates NSE:INDOFARM with a GF Score™ of 36/100. The stock has 4 warning signs investors should review. Among 169 Farm & Heavy Construction Machinery companies, Indo Farm Equipment ranks worse than 82.25% 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. Indo Farm Equipment's
Operating Income
for the
three
months ended in Mar. 2026 was ₹154 Mil. Indo Farm Equipment's Interest Expense for the
three
months ended in Mar. 2026 was ₹-42 Mil.
Indo Farm Equipment's interest coverage for the quarter that ended in Mar. 2026 was 3.63.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Indo Farm Equipment's Interest Coverage or its related term are showing as below:
NSE:INDOFARM'
s Interest Coverage Range Over the Past 10 Years
Min: 1.71 Med: 1.99 Max: 2.63
Current: 2.46
NSE:INDOFARM's Interest Coverage is ranked worse than 82.25% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.32
vs NSE:INDOFARM: 2.46
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 .
Indo Farm Equipment Interest Coverage Related Terms
Indo Farm Equipment Interest Coverage Historical Data
* Premium members only.
The historical data trend for Indo Farm Equipment'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:INDOFARM vs CAT, DE, PCAR: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Indo Farm Equipment'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.
Indo Farm Equipment Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Indo Farm Equipment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Indo Farm Equipment'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.
Indo Farm Equipment (NSE:INDOFARM) has a Interest Coverage of 3.63 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Indo Farm Equipment and its competitors. This is 82% above median its historical median of 1.99. Over the past decade, Indo Farm Equipment's Interest Coverage has ranged from 1.71 to 2.63. According to the industry distribution chart, Indo Farm Equipment ranks #139 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 82.2%.
Is Indo Farm Equipment's Interest Coverage too high?
Indo Farm Equipment's current Interest Coverage of 3.63 is 82% above median its 10-year median of 1.99. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 2.63. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.32. Indo Farm Equipment's value of 3.63 is 61.1% below this industry median. Based on the distribution chart, Indo Farm Equipment ranks #139 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Indo Farm Equipment has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Indo Farm Equipment's Interest Coverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Indo Farm Equipment ranks #139 out of 169 companies for Interest Coverage. This places Indo Farm Equipment in the lower half of its industry. The industry median Interest Coverage is 9.32. Indo Farm Equipment's value of 3.63 is 61.1% below this benchmark. Historically, Indo Farm Equipment's own Interest Coverage has ranged from 1.71 to 2.63 over the past decade. While the company's 10-year median is 1.99 vs. the industry median of 9.32, Indo Farm Equipment 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 Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.32, based on 169 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. Indo Farm Equipment's current Interest Coverage of 3.63 is 61.1% 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 Indo Farm Equipment and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indo Farm Equipment's current Interest Coverage is 3.63, which is 82% above median its own 10-year median of 1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indo Farm Equipment stock overvalued right now?
Indo Farm Equipment (NSE:INDOFARM) has a current Interest Coverage of 3.63. The current Interest Coverage is 3.63, which is 82% above median its 10-year median of 1.99 and 61.1% below the Farm & Heavy Construction Machinery industry median of 9.32. Indo Farm Equipment's overall GF Score™ is 36/100 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 Indo Farm Equipment (NSE:INDOFARM), the current Interest Coverage is 3.63 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.
Indo Farm Equipment Ltd is a fully integrated established manufacturer of Tractors and Pick & Carry Cranes. It also deals in other farm equipment such as Harvester Combines, Rotavators, and other related spares & components. Its facilities are equipped with induction furnaces, pneumatic molding machines, automatic molding line, a sand plant, a fully equipped Metallurgy and Sand Testing Laboratory, a Machining Center, a Gear Shop, a Press Shop, Fabrication Shop, Paint Shop, Assembly unit, Quality Room & Utility room.
36GF Score
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