Reliance PowerNSE:RPOWER +2.90%65 Interest Coverage is 0.78 as of Mar. 2026, which is 5% below its 10-year median of 0.82. GuruFocus rates NSE:RPOWER with a GF Score™ of 65/100 and a GF Value™ of ₹30.00 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 321 Utilities - Independent Power Producers companies, Reliance Power ranks worse than 83.49% 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. Reliance Power's
Operating Income
for the
three
months ended in Mar. 2026 was ₹3,711 Mil. Reliance Power's Interest Expense for the
three
months ended in Mar. 2026 was ₹-4,741 Mil.
Reliance Power's interest coverage for the quarter that ended in Mar. 2026 was 0.78.
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. Reliance Power Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Reliance Power's Interest Coverage or its related term are showing as below:
NSE:RPOWER'
s Interest Coverage Range Over the Past 10 Years
Min: 0.26 Med: 0.82 Max: 0.96
Current: 0.92
NSE:RPOWER's Interest Coverage is ranked worse than 83.49% of 321
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.77
vs NSE:RPOWER: 0.92
Reliance Power (NSE:RPOWER) 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 .
Reliance Power Interest Coverage Related Terms
Reliance Power Interest Coverage Historical Data
* Premium members only.
The historical data trend for Reliance Power'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:RPOWER vs CEG, VST, NRG: Interest Coverage Comparison
For the Utilities - Independent Power Producers subindustry, Reliance Power'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.
Reliance Power Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Reliance Power's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Reliance Power'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.
Reliance Power (NSE:RPOWER) has a Interest Coverage of 0.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Reliance Power and its competitors. This is near median its historical median of 0.82. Over the past decade, Reliance Power's Interest Coverage has ranged from 0.26 to 0.96. According to the industry distribution chart, Reliance Power ranks #268 out of 321 companies in the Utilities - Independent Power Producers industry, placing it in the top 83.5%.
Is Reliance Power's Interest Coverage too high?
Reliance Power's current Interest Coverage of 0.78 is near median its 10-year median of 0.82. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.96. The Utilities - Independent Power Producers industry median Interest Coverage is 2.77. Reliance Power's value of 0.78 is 71.8% below this industry median. Based on the distribution chart, Reliance Power ranks #268 out of 321 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Reliance Power has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reliance Power's Interest Coverage compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Reliance Power ranks #268 out of 321 companies for Interest Coverage. This places Reliance Power in the lower half of its industry. The industry median Interest Coverage is 2.77. Reliance Power's value of 0.78 is 71.8% below this benchmark. Historically, Reliance Power's own Interest Coverage has ranged from 0.26 to 0.96 over the past decade. While the company's 10-year median is 0.82 vs. the industry median of 2.77, Reliance Power 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 - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.77, based on 321 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. Reliance Power's current Interest Coverage of 0.78 is 71.8% 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 Reliance Power and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance Power's current Interest Coverage is 0.78, which is near median its own 10-year median of 0.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Power stock overvalued right now?
Based on GuruFocus' analysis, Reliance Power (NSE:RPOWER) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹30.00, compared to a current price of ₹24.84 — trading 17.2% below its estimated fair value. The current Interest Coverage is 0.78, which is near median its 10-year median of 0.82 and 71.8% below the Utilities - Independent Power Producers industry median of 2.77. Reliance Power's overall GF Score™ is 65/100 with 7 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 Reliance Power (NSE:RPOWER), the current Interest Coverage is 0.78 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 Reliance Power (NSE:RPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Power stock appears to be undervalued.
The current stock price of ₹24.84 is trading 17.2% below its estimated GF Value™ of ₹30.00.
GuruFocus considers Reliance Power to be Modestly Undervalued.
Key valuation signals for NSE:RPOWER:
Interest Coverage: 0.78 (near median its 10-year median of 0.82)
GF Value™: ₹30.00 vs. price of ₹24.84 (17.2% below fair value)
Industry Position: 71.8% below the Utilities - Independent Power Producers median (#268 of 321)
No single metric tells the full story. See the NSE:RPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance Power Ltd is an electric utility that constructs, develops, and operates power generation projects. Generation of power is its only operating segment and includes all of the firm's projects. Categorized as either operating, under construction, or under development, these projects generate electricity using thermal fuel sources or renewable resources. The company derives its revenue from the sale of energy, but support service agreements contribute as well.
65GF Score
Get the complete analysis for NSE:RPOWER
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:RPOWER has been successfully added to your 
