NLC IndiaNSE:NLCINDIA -0.48%86 Interest Coverage is 2.96 as of Mar. 2026, which is 1% below its 10-year median of 2.98. GuruFocus rates NSE:NLCINDIA with a GF Score™ of 86/100 and a GF Value™ of ₹287.20 (Fairly Valued). The stock has 9 warning signs investors should review. Among 450 Utilities - Regulated companies, NLC India ranks worse than 63.56% 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. NLC India's
Operating Income
for the
three
months ended in Mar. 2026 was ₹10,796 Mil. NLC India's Interest Expense for the
three
months ended in Mar. 2026 was ₹-3,643 Mil.
NLC India's interest coverage for the quarter that ended in Mar. 2026 was 2.96.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. NLC India Ltd interest coverage is 2.63, which is low.
The historical rank and industry rank for NLC India's Interest Coverage or its related term are showing as below:
NSE:NLCINDIA'
s Interest Coverage Range Over the Past 10 Years
Min: 2.44 Med: 2.98 Max: 6.99
Current: 2.63
NSE:NLCINDIA's Interest Coverage is ranked worse than 63.56% of 450
companies
in the Utilities - Regulated industry
Industry Median: 3.8
vs NSE:NLCINDIA: 2.63
NLC India (NSE:NLCINDIA) 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 .
NLC India Interest Coverage Related Terms
NLC India Interest Coverage Historical Data
* Premium members only.
The historical data trend for NLC India'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:NLCINDIA vs NEE, SO, DUK: Interest Coverage Comparison
For the Utilities - Regulated Electric subindustry, NLC India'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.
NLC India Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, NLC India's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NLC India'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.
NLC India (NSE:NLCINDIA) has a Interest Coverage of 2.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NLC India and its competitors. This is near median its historical median of 2.98. Over the past decade, NLC India's Interest Coverage has ranged from 2.44 to 6.99. According to the industry distribution chart, NLC India ranks #286 out of 450 companies in the Utilities - Regulated industry, placing it in the top 63.6%.
Is NLC India's Interest Coverage too high?
NLC India's current Interest Coverage of 2.96 is near median its 10-year median of 2.98. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 6.99. The Utilities - Regulated industry median Interest Coverage is 3.80. NLC India's value of 2.96 is 22.1% below this industry median. Based on the distribution chart, NLC India ranks #286 out of 450 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, NLC India has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NLC India's Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, NLC India ranks #286 out of 450 companies for Interest Coverage. This places NLC India in the lower half of its industry. The industry median Interest Coverage is 3.80. NLC India's value of 2.96 is 22.1% below this benchmark. Historically, NLC India's own Interest Coverage has ranged from 2.44 to 6.99 over the past decade. While the company's 10-year median is 2.98 vs. the industry median of 3.80, NLC India 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 an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.80, based on 450 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. NLC India's current Interest Coverage of 2.96 is 22.1% 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 NLC India and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NLC India's current Interest Coverage is 2.96, which is near median its own 10-year median of 2.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NLC India stock overvalued right now?
Based on GuruFocus' analysis, NLC India (NSE:NLCINDIA) is currently considered Fairly Valued. The stock's GF Value™ is ₹287.20, compared to a current price of ₹313.50 — trading 9.2% above its estimated fair value. The current Interest Coverage is 2.96, which is near median its 10-year median of 2.98 and 22.1% below the Utilities - Regulated industry median of 3.80. NLC India's overall GF Score™ is 86/100 with 9 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 NLC India (NSE:NLCINDIA), the current Interest Coverage is 2.96 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 NLC India (NSE:NLCINDIA) Overvalued in 2026?
Based on GuruFocus' analysis, NLC India stock appears to be overvalued.
The current stock price of ₹313.50 is trading 9.2% above its estimated GF Value™ of ₹287.20.
GuruFocus considers NLC India to be Fairly Valued.
Key valuation signals for NSE:NLCINDIA:
Interest Coverage: 2.96 (near median its 10-year median of 2.98)
GF Value™: ₹287.20 vs. price of ₹313.50 (9.2% above fair value)
Industry Position: 22.1% below the Utilities - Regulated median (#286 of 450)
No single metric tells the full story. See the NSE:NLCINDIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NLC India Ltd is an energy company. The company has two reportable segments namely the Mining segment which is engaged in the mining of lignite and coal, and the Power generation segment which is engaged in the generation and sale of power utilities across the country. The power is generated from Thermal Power Stations and renewable energy sources such as wind and solar. It generates maximum revenue from the Power generation segment. It also engaged in providing consultancy and management services relating to mining and power generation.
86GF Score
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