Mahanagar GasNSE:MGL -1.79%97 Interest Coverage is 31.56 as of Mar. 2026, which is 72% below its 10-year median of 112.78. GuruFocus rates NSE:MGL with a GF Score™ of 97/100 and a GF Value™ of ₹1,552.96 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 449 Utilities - Regulated companies, Mahanagar Gas ranks better than 90.87% 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. Mahanagar Gas's
Operating Income
for the
three
months ended in Mar. 2026 was ₹1,537 Mil. Mahanagar Gas's Interest Expense for the
three
months ended in Mar. 2026 was ₹-49 Mil.
Mahanagar Gas's interest coverage for the quarter that ended in Mar. 2026 was 31.56.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Mahanagar Gas's Interest Coverage or its related term are showing as below:
NSE:MGL'
s Interest Coverage Range Over the Past 10 Years
Min: 49.65 Med: 112.78 Max: 7431.81
Current: 49.65
NSE:MGL's Interest Coverage is ranked better than 90.87% of 449
companies
in the Utilities - Regulated industry
Industry Median: 3.78
vs NSE:MGL: 49.65
Mahanagar Gas (NSE:MGL) 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 .
Mahanagar Gas Interest Coverage Related Terms
Mahanagar Gas Interest Coverage Historical Data
* Premium members only.
The historical data trend for Mahanagar Gas'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:MGL vs ATO, NI, UGI: Interest Coverage Comparison
For the Utilities - Regulated Gas subindustry, Mahanagar Gas'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.
Mahanagar Gas Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Mahanagar Gas's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mahanagar Gas'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.
Mahanagar Gas (NSE:MGL) has a Interest Coverage of 31.56 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mahanagar Gas and its competitors. This is 72% below median its historical median of 112.78. Over the past decade, Mahanagar Gas' Interest Coverage has ranged from 49.65 to 7,431.81. According to the industry distribution chart, Mahanagar Gas ranks #41 out of 449 companies in the Utilities - Regulated industry, placing it in the top 9.1%.
Is Mahanagar Gas' Interest Coverage too high?
Mahanagar Gas' current Interest Coverage of 31.56 is 72% below median its 10-year median of 112.78. Over the past 10 years, this metric has ranged from a low of 49.65 to a high of 7,431.81. The Utilities - Regulated industry median Interest Coverage is 3.78. Mahanagar Gas' value of 31.56 is 734.9% above this industry median. Based on the distribution chart, Mahanagar Gas ranks #41 out of 449 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Mahanagar Gas has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mahanagar Gas' Interest Coverage compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Mahanagar Gas ranks #41 out of 449 companies for Interest Coverage. This places Mahanagar Gas in the top 9% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.78. Mahanagar Gas' value of 31.56 is 734.9% above this benchmark. Historically, Mahanagar Gas' own Interest Coverage has ranged from 49.65 to 7,431.81 over the past decade. While the company's 10-year median is 112.78 vs. the industry median of 3.78, Mahanagar Gas 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 Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. Mahanagar Gas's current Interest Coverage of 31.56 is 734.9% 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 Mahanagar Gas and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahanagar Gas's current Interest Coverage is 31.56, which is 72% below median its own 10-year median of 112.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mahanagar Gas stock overvalued right now?
Based on GuruFocus' analysis, Mahanagar Gas (NSE:MGL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,552.96, compared to a current price of ₹1,174.60 — trading 24.4% below its estimated fair value. The current Interest Coverage is 31.56, which is 72% below median its 10-year median of 112.78 and 734.9% above the Utilities - Regulated industry median of 3.78. Mahanagar Gas' overall GF Score™ is 97/100 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 Mahanagar Gas (NSE:MGL), the current Interest Coverage is 31.56 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 Mahanagar Gas (NSE:MGL) Overvalued in 2026?
Based on GuruFocus' analysis, Mahanagar Gas stock appears to be undervalued.
The current stock price of ₹1,174.60 is trading 24.4% below its estimated GF Value™ of ₹1,552.96.
GuruFocus considers Mahanagar Gas to be Modestly Undervalued.
Key valuation signals for NSE:MGL:
Interest Coverage: 31.56 (72% below median its 10-year median of 112.78)
GF Value™: ₹1,552.96 vs. price of ₹1,174.60 (24.4% below fair value)
Industry Position: 734.9% above the Utilities - Regulated median (#41 of 449)
No single metric tells the full story. See the NSE:MGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mahanagar Gas Ltd is an India-based natural gas distribution company. It distributes natural gas through the City Gas Distribution network of pipelines. It distributes compressed natural gas (CNG) for use in vehicles and piped natural gas (PNG) for domestic household, commercial, and industrial use, and to transport sector customers as well. The company operates under the business segment of the sale of natural gas. Its business operations are principally carried out in India. The company generates revenue by selling natural gas, of which the sale of CNG accounts majorly for the total gas sales revenue.
97GF Score
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