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. Neuland Laboratories's
Operating Income
for the
three
months ended in Mar. 2026 was ₹2,822 Mil. Neuland Laboratories's Interest Expense for the
three
months ended in Mar. 2026 was ₹-72 Mil.
Neuland Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 39.17.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Neuland Laboratories's Interest Coverage or its related term are showing as below:
NSE:NEULANDLAB'
s Interest Coverage Range Over the Past 10 Years
Min: 2.3 Med: 9.32 Max: 36.79
Current: 20.16
NSE:NEULANDLAB's Interest Coverage is ranked better than 58.25% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs NSE:NEULANDLAB: 20.16
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 .
Neuland Laboratories Interest Coverage Related Terms
Neuland Laboratories Interest Coverage Historical Data
* Premium members only.
The historical data trend for Neuland 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.
NSE:NEULANDLAB vs ZTS: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Neuland 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.
Neuland Laboratories Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neuland Laboratories's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Neuland 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.
Neuland Laboratories (NSE:NEULANDLAB) has a Interest Coverage of 39.17 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Neuland Laboratories and its competitors. This is 320% above median its historical median of 9.32. Over the past decade, Neuland Laboratories' Interest Coverage has ranged from 2.30 to 36.79. According to the industry distribution chart, Neuland Laboratories ranks #286 out of 685 companies in the Drug Manufacturers industry, placing it in the top 41.8%.
Is Neuland Laboratories' Interest Coverage too high?
Neuland Laboratories' current Interest Coverage of 39.17 is 320% above median its 10-year median of 9.32. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 36.79. The Drug Manufacturers industry median Interest Coverage is 12.78. Neuland Laboratories' value of 39.17 is 206.5% above this industry median. Based on the distribution chart, Neuland Laboratories ranks #286 out of 685 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Neuland Laboratories has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Neuland Laboratories' Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Neuland Laboratories ranks #286 out of 685 companies for Interest Coverage. This puts Neuland Laboratories in the upper half of its industry. The industry median Interest Coverage is 12.78. Neuland Laboratories' value of 39.17 is 206.5% above this benchmark. Historically, Neuland Laboratories' own Interest Coverage has ranged from 2.30 to 36.79 over the past decade. While the company's 10-year median is 9.32 vs. the industry median of 12.78, Neuland 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 12.78, based on 685 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. Neuland Laboratories's current Interest Coverage of 39.17 is 206.5% 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 Neuland Laboratories and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neuland Laboratories's current Interest Coverage is 39.17, which is 320% above median its own 10-year median of 9.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neuland Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Neuland Laboratories (NSE:NEULANDLAB) is currently considered Fairly Valued. The stock's GF Value™ is ₹16,469.67, compared to a current price of ₹17,961.00 — trading 9.1% above its estimated fair value. The current Interest Coverage is 39.17, which is 320% above median its 10-year median of 9.32 and 206.5% above the Drug Manufacturers industry median of 12.78. Neuland Laboratories' overall GF Score™ is 90/100 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 Neuland Laboratories (NSE:NEULANDLAB), the current Interest Coverage is 39.17 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 Neuland Laboratories (NSE:NEULANDLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Neuland Laboratories stock appears to be overvalued.
The current stock price of ₹17,961.00 is trading 9.1% above its estimated GF Value™ of ₹16,469.67.
GuruFocus considers Neuland Laboratories to be Fairly Valued.
Key valuation signals for NSE:NEULANDLAB:
Interest Coverage: 39.17 (320% above median its 10-year median of 9.32)
GF Value™: ₹16,469.67 vs. price of ₹17,961.00 (9.1% above fair value)
Industry Position: 206.5% above the Drug Manufacturers median (#286 of 685)
No single metric tells the full story. See the NSE:NEULANDLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neuland Laboratories Ltd is engaged in the manufacturing and selling of bulk drugs and caters to both the domestic and international markets. It is an API contract development and manufacturing organization (CDMO), supporting biotechnology and pharmaceutical companies in the design, development, and manufacturing of complex active pharmaceutical ingredients (APIs). The company develops small molecules and peptides for clinical trials and beyond, with the capacity to scale up through every stage of the product lifecycle to commercial manufacturing. Geographically, the group derives maximum revenue from its customers in India, followed by Europe, the USA and North America, and the Rest of the world.
90GF Score
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