Ipca LaboratoriesNSE:IPCALAB -0.18%86 Interest Coverage is 18.65 as of Mar. 2026, which is 3% above its 10-year median of 18.10. GuruFocus rates NSE:IPCALAB with a GF Score™ of 86/100 and a GF Value™ of ₹1,597.15 (Fairly Valued). The stock has 4 warning signs investors should review. Among 684 Drug Manufacturers companies, Ipca Laboratories ranks better than 58.92% 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. Ipca Laboratories's
Operating Income
for the
three
months ended in Mar. 2026 was ₹3,767 Mil. Ipca Laboratories's Interest Expense for the
three
months ended in Mar. 2026 was ₹-202 Mil.
Ipca Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 18.65.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ipca Laboratories's Interest Coverage or its related term are showing as below:
NSE:IPCALAB'
s Interest Coverage Range Over the Past 10 Years
Min: 6.81 Med: 18.1 Max: 153.08
Current: 20.55
NSE:IPCALAB's Interest Coverage is ranked better than 58.92% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs NSE:IPCALAB: 20.55
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 .
Ipca Laboratories Interest Coverage Related Terms
Ipca Laboratories Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ipca 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, Ipca 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.
Ipca Laboratories Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ipca Laboratories's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ipca 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.
Ipca Laboratories (NSE:IPCALAB) has a Interest Coverage of 18.65 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ipca Laboratories and its competitors. This is near median its historical median of 18.10. Over the past decade, Ipca Laboratories' Interest Coverage has ranged from 6.81 to 153.08. According to the industry distribution chart, Ipca Laboratories ranks #281 out of 684 companies in the Drug Manufacturers industry, placing it in the top 41.1%.
Is Ipca Laboratories' Interest Coverage too high?
Ipca Laboratories' current Interest Coverage of 18.65 is near median its 10-year median of 18.10. Over the past 10 years, this metric has ranged from a low of 6.81 to a high of 153.08. The Drug Manufacturers industry median Interest Coverage is 12.77. Ipca Laboratories' value of 18.65 is 46.1% above this industry median. Based on the distribution chart, Ipca Laboratories ranks #281 out of 684 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Ipca Laboratories has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ipca Laboratories' Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Ipca Laboratories ranks #281 out of 684 companies for Interest Coverage. This puts Ipca Laboratories in the upper half of its industry. The industry median Interest Coverage is 12.77. Ipca Laboratories' value of 18.65 is 46.1% above this benchmark. Historically, Ipca Laboratories' own Interest Coverage has ranged from 6.81 to 153.08 over the past decade. While the company's 10-year median is 18.10 vs. the industry median of 12.77, Ipca 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 12.77, based on 684 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. Ipca Laboratories's current Interest Coverage of 18.65 is 46.1% 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 Ipca Laboratories and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ipca Laboratories's current Interest Coverage is 18.65, which is near median its own 10-year median of 18.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ipca Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Ipca Laboratories (NSE:IPCALAB) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,597.15, compared to a current price of ₹1,618.30 — trading 1.3% above its estimated fair value. The current Interest Coverage is 18.65, which is near median its 10-year median of 18.10 and 46.1% above the Drug Manufacturers industry median of 12.77. Ipca Laboratories' overall GF Score™ is 86/100 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 Ipca Laboratories (NSE:IPCALAB), the current Interest Coverage is 18.65 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 Ipca Laboratories (NSE:IPCALAB) Overvalued in 2026?
Based on GuruFocus' analysis, Ipca Laboratories stock appears to be overvalued.
The current stock price of ₹1,618.30 is trading 1.3% above its estimated GF Value™ of ₹1,597.15.
GuruFocus considers Ipca Laboratories to be Fairly Valued.
Key valuation signals for NSE:IPCALAB:
Interest Coverage: 18.65 (near median its 10-year median of 18.10)
GF Value™: ₹1,597.15 vs. price of ₹1,618.30 (1.3% above fair value)
Industry Position: 46.1% above the Drug Manufacturers median (#281 of 684)
No single metric tells the full story. See the NSE:IPCALAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ipca Laboratories Ltd is a pharmaceutical company. The company's principal activity is the Development, Manufacturing, and Marketing of Pharmaceuticals Products. The company's API products include Atenolol (anti-hypertensive), Chloroquine Phosphate (anti-malarial), Chlorthalidone (diuretic), Furosemide (diuretic), Hydroxychloroquine Sulphate (DMARD), Losartan. The company has only one reportable primary business segment, pharmaceuticals.
86GF Score
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