Rain Industries (NSE:RAIN) Interest Coverage: 1.08 (As of Dec. 2025) — 45% Below Median


NSE:RAIN Rain Industries Ltd NSE:RAIN
62 GF Score
Price ₹187.74
GF Value ₹154.33
Valuation Modestly Overvalued
! 12 Warning Signs
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What is Rain Industries Interest Coverage?

Rain Industries NSE:RAIN -0.59% 62 Interest Coverage is 1.08 as of Dec. 2025, which is 45% below its 10-year median of 1.96. GuruFocus rates NSE:RAIN with a GF Score™ of 62/100 and a GF Value™ of ₹154.33 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 1,234 Chemicals companies, Rain Industries ranks worse than 93.03% 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. Rain Industries's Operating Income for the six months ended in Dec. 2025 was ₹2,499 Mil. Rain Industries's Interest Expense for the six months ended in Dec. 2025 was ₹-2,318 Mil. Rain Industries's interest coverage for the quarter that ended in Dec. 2025 was 1.08. 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. Rain Industries Ltd interest coverage is 1.08, which is low.

The historical rank and industry rank for Rain Industries's Interest Coverage or its related term are showing as below:

NSE:RAIN' s Interest Coverage Range Over the Past 10 Years
Min: 0.5   Med: 1.96   Max: 5.95
Current: 1.08


NSE:RAIN's Interest Coverage is ranked worse than
93.03% of 1234 companies
in the Chemicals industry
Industry Median: 10.18 vs NSE:RAIN: 1.08

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Rain Industries  (NSE:RAIN) 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 .


Rain Industries Interest Coverage Related Terms


Rain Industries Interest Coverage Historical Data

* Premium members only.

The historical data trend for Rain Industries'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.

Rain Industries Interest Coverage Chart

Rain Industries Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.39 5.95 1.14 0.50 1.39

Rain Industries Semi-Annual Data
Mar06 Mar07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 4.41 0.03 0.32 1.08

NSE:RAIN vs LIN, SHW, ECL: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Rain Industries'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.


Rain Industries Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Rain Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Rain Industries's Interest Coverage falls into.


NSE:RAIN
62GF Score
Rain Industries Ltd NSE:RAIN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rain Industries Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Rain Industries's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Rain Industries's Interest Expense was ₹-8,847 Mil. Its Operating Income was ₹12,270 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹78,205 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*12269.61/-8847
=1.39

Rain Industries's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Rain Industries's Interest Expense was ₹-2,318 Mil. Its Operating Income was ₹2,499 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹78,205 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*2499.41/-2317.61
=1.08

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 1.08 mean?
Rain Industries (NSE:RAIN) has a Interest Coverage of 1.08 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rain Industries and its competitors. This is 45% below median its historical median of 1.96. Over the past decade, Rain Industries' Interest Coverage has ranged from 0.50 to 5.95. According to the industry distribution chart, Rain Industries ranks #1148 out of 1234 companies in the Chemicals industry, placing it in the top 93%.
Is Rain Industries' Interest Coverage too high?
Rain Industries' current Interest Coverage of 1.08 is 45% below median its 10-year median of 1.96. Over the past 10 years, this metric has ranged from a low of 0.50 to a high of 5.95. The Chemicals industry median Interest Coverage is 10.18. Rain Industries' value of 1.08 is 89.4% below this industry median. Based on the distribution chart, Rain Industries ranks #1148 out of 1234 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Rain Industries has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rain Industries' Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Rain Industries ranks #1148 out of 1234 companies for Interest Coverage. This places Rain Industries in the lower half of its industry. The industry median Interest Coverage is 10.18. Rain Industries' value of 1.08 is 89.4% below this benchmark. Historically, Rain Industries' own Interest Coverage has ranged from 0.50 to 5.95 over the past decade. While the company's 10-year median is 1.96 vs. the industry median of 10.18, Rain Industries 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,234 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. Rain Industries's current Interest Coverage of 1.08 is 89.4% 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 Rain Industries and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rain Industries's current Interest Coverage is 1.08, which is 45% below median its own 10-year median of 1.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rain Industries stock overvalued right now?
Based on GuruFocus' analysis, Rain Industries (NSE:RAIN) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹154.33, compared to a current price of ₹187.74 — trading 21.6% above its estimated fair value. The current Interest Coverage is 1.08, which is 45% below median its 10-year median of 1.96 and 89.4% below the Chemicals industry median of 10.18. Rain Industries' overall GF Score™ is 62/100 with 12 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 Rain Industries (NSE:RAIN), the current Interest Coverage is 1.08 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 Rain Industries (NSE:RAIN) Overvalued in 2026?

Based on GuruFocus' analysis, Rain Industries stock appears to be overvalued. The current stock price of ₹187.74 is trading 21.6% above its estimated GF Value™ of ₹154.33. GuruFocus considers Rain Industries to be Modestly Overvalued.

Key valuation signals for NSE:RAIN:

  • Interest Coverage: 1.08 (45% below median its 10-year median of 1.96)
  • GF Value™: ₹154.33 vs. price of ₹187.74 (21.6% above fair value)
  • GF Score™: 62/100 with 12 warning signs
  • Industry Position: 89.4% below the Chemicals median (#1148 of 1234)

No single metric tells the full story. See the NSE:RAIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rain Industries Business Description

Other Exchanges 500339:India
Address 34, Srinagar Colony, Rain Center, Hyderabad, TG, IND, 500073
Rain Industries Ltd engages in the production of cement and other related products. The group operates through three segments namely Carbon Products, Advance Materials, and Cement. The product portfolio of the group consists of Calcined Petroleum Coke, Green Petroleum Coke, Coal Tar Pitch, Co-generated Energy, and other derivatives of coal tar distillation. In addition, it also focuses on the downstream operations of coal tar distillation and modifiers and is also involved in the manufacture and sale of cement. Geographically, the business of the firm is spread across the region of Europe, the United States, North America, Asia, and others.
62GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹187.74
Price
₹154.33
GF Value