Natco PharmaNSE:NATCOPHARM +2.34%89 Interest Coverage is 7.08 as of Mar. 2026, which is 86% below its 10-year median of 50.65. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹932.30 (Fairly Valued). The stock has 2 warning signs investors should review. Among 687 Drug Manufacturers companies, Natco Pharma ranks better than 66.52% 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. Natco Pharma's
Operating Income
for the
three
months ended in Mar. 2026 was ₹772 Mil. Natco Pharma's Interest Expense for the
three
months ended in Mar. 2026 was ₹-109 Mil.
Natco Pharma's interest coverage for the quarter that ended in Mar. 2026 was 7.08.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Natco Pharma's Interest Coverage or its related term are showing as below:
NSE:NATCOPHARM'
s Interest Coverage Range Over the Past 10 Years
Min: 10.67 Med: 50.65 Max: 131.4
Current: 33.51
NSE:NATCOPHARM's Interest Coverage is ranked better than 66.52% of 687
companies
in the Drug Manufacturers industry
Industry Median: 12.75
vs NSE:NATCOPHARM: 33.51
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 .
Natco Pharma Interest Coverage Related Terms
Natco Pharma Interest Coverage Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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:NATCOPHARM vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma'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.
Natco Pharma Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Natco Pharma (NSE:NATCOPHARM) has a Interest Coverage of 7.08 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Natco Pharma and its competitors. This is 86% below median its historical median of 50.65. Over the past decade, Natco Pharma's Interest Coverage has ranged from 10.67 to 131.40. According to the industry distribution chart, Natco Pharma ranks #230 out of 687 companies in the Drug Manufacturers industry, placing it in the top 33.5%.
Is Natco Pharma's Interest Coverage too high?
Natco Pharma's current Interest Coverage of 7.08 is 86% below median its 10-year median of 50.65. Over the past 10 years, this metric has ranged from a low of 10.67 to a high of 131.40. The Drug Manufacturers industry median Interest Coverage is 12.75. Natco Pharma's value of 7.08 is 44.5% below this industry median. Based on the distribution chart, Natco Pharma ranks #230 out of 687 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #230 out of 687 companies for Interest Coverage. This puts Natco Pharma in the upper half of its industry. The industry median Interest Coverage is 12.75. Natco Pharma's value of 7.08 is 44.5% below this benchmark. Historically, Natco Pharma's own Interest Coverage has ranged from 10.67 to 131.40 over the past decade. While the company's 10-year median is 50.65 vs. the industry median of 12.75, Natco Pharma 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.75, based on 687 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. Natco Pharma's current Interest Coverage of 7.08 is 44.5% 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Interest Coverage is 7.08, which is 86% below median its own 10-year median of 50.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹932.30, compared to a current price of ₹984.10 — trading 5.6% above its estimated fair value. The current Interest Coverage is 7.08, which is 86% below median its 10-year median of 50.65 and 44.5% below the Drug Manufacturers industry median of 12.75. Natco Pharma's overall GF Score™ is 89/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current Interest Coverage is 7.08 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹984.10 is trading 5.6% above its estimated GF Value™ of ₹932.30.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Interest Coverage: 7.08 (86% below median its 10-year median of 50.65)
GF Value™: ₹932.30 vs. price of ₹984.10 (5.6% above fair value)
Industry Position: 44.5% below the Drug Manufacturers median (#230 of 687)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
Get the complete analysis for NSE:NATCOPHARM
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:NATCOPHARM has been successfully added to your 
