Oil & Natural GasNSE:ONGC +0.41%88 Interest Coverage is 12.91 as of Mar. 2026, which is 30% above its 10-year median of 9.93. GuruFocus rates NSE:ONGC with a GF Score™ of 88/100 and a GF Value™ of ₹268.60 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 731 Oil & Gas companies, Oil & Natural Gas ranks better than 63.61% 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. Oil & Natural Gas's
Operating Income
for the
three
months ended in Mar. 2026 was ₹396,427 Mil. Oil & Natural Gas's Interest Expense for the
three
months ended in Mar. 2026 was ₹-30,696 Mil.
Oil & Natural Gas's interest coverage for the quarter that ended in Mar. 2026 was 12.91.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Oil & Natural Gas's Interest Coverage or its related term are showing as below:
NSE:ONGC'
s Interest Coverage Range Over the Past 10 Years
Min: 6.56 Med: 9.93 Max: 15.63
Current: 10.29
NSE:ONGC's Interest Coverage is ranked better than 63.61% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs NSE:ONGC: 10.29
Oil & Natural Gas (NSE:ONGC) 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 .
Oil & Natural Gas Interest Coverage Related Terms
Oil & Natural Gas Interest Coverage Historical Data
* Premium members only.
The historical data trend for Oil & Natural 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:ONGC vs XOM, CVX: Interest Coverage Comparison
For the Oil & Gas Integrated subindustry, Oil & Natural 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.
Oil & Natural Gas Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Oil & Natural Gas's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Oil & Natural 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.
Oil & Natural Gas (NSE:ONGC) has a Interest Coverage of 12.91 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Oil & Natural Gas and its competitors. This is 30% above median its historical median of 9.93. Over the past decade, Oil & Natural Gas' Interest Coverage has ranged from 6.56 to 15.63. According to the industry distribution chart, Oil & Natural Gas ranks #266 out of 731 companies in the Oil & Gas industry, placing it in the top 36.4%.
Is Oil & Natural Gas' Interest Coverage too high?
Oil & Natural Gas' current Interest Coverage of 12.91 is 30% above median its 10-year median of 9.93. Over the past 10 years, this metric has ranged from a low of 6.56 to a high of 15.63. The Oil & Gas industry median Interest Coverage is 5.89. Oil & Natural Gas' value of 12.91 is 119.2% above this industry median. Based on the distribution chart, Oil & Natural Gas ranks #266 out of 731 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Oil & Natural Gas has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Oil & Natural Gas' Interest Coverage compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Oil & Natural Gas ranks #266 out of 731 companies for Interest Coverage. This puts Oil & Natural Gas in the upper half of its industry. The industry median Interest Coverage is 5.89. Oil & Natural Gas' value of 12.91 is 119.2% above this benchmark. Historically, Oil & Natural Gas' own Interest Coverage has ranged from 6.56 to 15.63 over the past decade. While the company's 10-year median is 9.93 vs. the industry median of 5.89, Oil & Natural 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 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. Oil & Natural Gas's current Interest Coverage of 12.91 is 119.2% 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 Oil & Natural Gas and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oil & Natural Gas's current Interest Coverage is 12.91, which is 30% above median its own 10-year median of 9.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil & Natural Gas stock overvalued right now?
Based on GuruFocus' analysis, Oil & Natural Gas (NSE:ONGC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹268.60, compared to a current price of ₹234.05 — trading 12.9% below its estimated fair value. The current Interest Coverage is 12.91, which is 30% above median its 10-year median of 9.93 and 119.2% above the Oil & Gas industry median of 5.89. Oil & Natural Gas' overall GF Score™ is 88/100 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 Oil & Natural Gas (NSE:ONGC), the current Interest Coverage is 12.91 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 Oil & Natural Gas (NSE:ONGC) Overvalued in 2026?
Based on GuruFocus' analysis, Oil & Natural Gas stock appears to be undervalued.
The current stock price of ₹234.05 is trading 12.9% below its estimated GF Value™ of ₹268.60.
GuruFocus considers Oil & Natural Gas to be Modestly Undervalued.
Key valuation signals for NSE:ONGC:
Interest Coverage: 12.91 (30% above median its 10-year median of 9.93)
GF Value™: ₹268.60 vs. price of ₹234.05 (12.9% below fair value)
Industry Position: 119.2% above the Oil & Gas median (#266 of 731)
No single metric tells the full story. See the NSE:ONGC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oil & Natural Gas Corp Ltd is an Indian-based company. It engaged in the exploration, development, and production of crude oil, natural gas, and value-added products. Along with its subsidiaries, the company operates in the following business segments: Refining and Marketing, which derives maximum revenue, Exploration and Production, and Petrochemicals. Geographically, the group derives maximum revenue from India, from its offshore and onshore activities, and is also involved in exploration and production activities outside India.
88GF Score
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