RailTel of IndiaNSE:RAILTEL -0.36%99 Interest Coverage is 90.88 as of Dec. 2025, which is 275% above its 10-year median of 24.25. GuruFocus rates NSE:RAILTEL with a GF Score™ of 99/100 and a GF Value™ of ₹494.55 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 284 Telecommunication Services companies, RailTel of India ranks better than 97.18% 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. RailTel of India's
Operating Income
for the
three
months ended in Dec. 2025 was ₹845 Mil. RailTel of India's Interest Expense for the
three
months ended in Dec. 2025 was ₹-9 Mil.
RailTel of India's interest coverage for the quarter that ended in Dec. 2025 was 90.88.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. RailTel Corporation of India Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for RailTel of India's Interest Coverage or its related term are showing as below:
NSE:RAILTEL'
s Interest Coverage Range Over the Past 10 Years
Min: 18.25 Med: 24.25 Max: 326.68
Current: 326.68
NSE:RAILTEL's Interest Coverage is ranked better than 97.18% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs NSE:RAILTEL: 326.68
RailTel of India (NSE:RAILTEL) 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 .
RailTel of India Interest Coverage Related Terms
RailTel of India Interest Coverage Historical Data
* Premium members only.
The historical data trend for RailTel of 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:RAILTEL vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, RailTel of 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.
RailTel of India Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, RailTel of India's Interest Coverage distribution charts can be found below:
* The bar in red indicates where RailTel of 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.
RailTel of India (NSE:RAILTEL) has a Interest Coverage of 90.88 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on RailTel of India and its competitors. This is 275% above median its historical median of 24.25. Over the past decade, RailTel of India's Interest Coverage has ranged from 18.25 to 326.68. According to the industry distribution chart, RailTel of India ranks #8 out of 284 companies in the Telecommunication Services industry, placing it in the top 2.8%.
Is RailTel of India's Interest Coverage too high?
RailTel of India's current Interest Coverage of 90.88 is 275% above median its 10-year median of 24.25. Over the past 10 years, this metric has ranged from a low of 18.25 to a high of 326.68. The Telecommunication Services industry median Interest Coverage is 4.69. RailTel of India's value of 90.88 is 1839.8% above this industry median. Based on the distribution chart, RailTel of India ranks #8 out of 284 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, RailTel of India has a GF Score™ of 99/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RailTel of India's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, RailTel of India ranks #8 out of 284 companies for Interest Coverage. This places RailTel of India in the top 3% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.69. RailTel of India's value of 90.88 is 1839.8% above this benchmark. Historically, RailTel of India's own Interest Coverage has ranged from 18.25 to 326.68 over the past decade. While the company's 10-year median is 24.25 vs. the industry median of 4.69, RailTel of India 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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. RailTel of India's current Interest Coverage of 90.88 is 1839.8% 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 RailTel of India and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RailTel of India's current Interest Coverage is 90.88, which is 275% above median its own 10-year median of 24.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RailTel of India stock overvalued right now?
Based on GuruFocus' analysis, RailTel of India (NSE:RAILTEL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹494.55, compared to a current price of ₹314.50 — trading 36.4% below its estimated fair value. The current Interest Coverage is 90.88, which is 275% above median its 10-year median of 24.25 and 1839.8% above the Telecommunication Services industry median of 4.69. RailTel of India's overall GF Score™ is 99/100 with 3 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 RailTel of India (NSE:RAILTEL), the current Interest Coverage is 90.88 as of Dec. 2025. 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 RailTel of India (NSE:RAILTEL) Overvalued in 2026?
Based on GuruFocus' analysis, RailTel of India stock appears to be undervalued.
The current stock price of ₹314.50 is trading 36.4% below its estimated GF Value™ of ₹494.55.
GuruFocus considers RailTel of India to be Significantly Undervalued.
Key valuation signals for NSE:RAILTEL:
Interest Coverage: 90.88 (275% above median its 10-year median of 24.25)
GF Value™: ₹494.55 vs. price of ₹314.50 (36.4% below fair value)
Industry Position: 1839.8% above the Telecommunication Services median (#8 of 284)
No single metric tells the full story. See the NSE:RAILTEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RailTel Corporation of India Ltd is a neutral telecom infrastructure provider in the country. It owns a pan-India optic fiber network on an exclusive Right of Way along the Railway track. The company's operating segment includes Telecom Services and Project Work services. It generates maximum revenue from the Telecom Services segment. The telecom services segment of the company provides services such as Managed Data Services; Leased Lines; Virtual Private Networks; Internet Leased Lines; Data Centre; Tower collocation, Rack and space, and NLD for voice carriage, and the project work services involve the following projects; National Optical Fiber Networks, Telecom and IT services related projects, and Enterprise specific IT & ITES Projects.
99GF Score
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