Sahana System (NSE:SAHANA) Interest Coverage: 73.53 (As of Mar. 2025) — 694% Above Median

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NSE:SAHANA Sahana System Ltd NSE:SAHANA
70 GF Score
Price ₹928.60
! 4 Warning Signs
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What is Sahana System Interest Coverage?

Sahana System NSE:SAHANA +8.98% 70 Interest Coverage is 73.53 as of Mar. 2025, which is 694% above its 10-year median of 9.26. GuruFocus rates NSE:SAHANA with a GF Score™ of 70/100. The stock has 4 warning signs investors should review. Among 1,713 Software companies, Sahana System ranks better than 64.33% 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. Sahana System's Operating Income for the six months ended in Mar. 2025 was ₹550 Mil. Sahana System's Interest Expense for the six months ended in Mar. 2025 was ₹-7 Mil. Sahana System's interest coverage for the quarter that ended in Mar. 2025 was 73.53. 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. Sahana System Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

NSE:SAHANA' s Interest Coverage Range Over the Past 10 Years
Min: 1.16   Med: 9.26   Max: 614.22
Current: 73.53


NSE:SAHANA's Interest Coverage is ranked better than
64.33% of 1713 companies
in the Software industry
Industry Median: 24.62 vs NSE:SAHANA: 73.53

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


Sahana System  (NSE:SAHANA) 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 .


Sahana System Interest Coverage Related Terms


Sahana System Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sahana System'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.

Sahana System Interest Coverage Chart

Sahana System Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial 1.39 3.71 14.80 614.22 73.53

Sahana System Semi-Annual Data
Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage Get a 7-Day Free Trial 1.39 3.71 14.80 614.22 73.53

NSE:SAHANA vs IBM, ACN, FISV: Interest Coverage Comparison

For the Information Technology Services subindustry, Sahana System'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.


Sahana System Interest Coverage vs Software Industry

For the Software industry and Technology sector, Sahana System's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sahana System's Interest Coverage falls into.


NSE:SAHANA
70GF Score
Sahana System Ltd NSE:SAHANA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Sahana System 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.

Sahana System's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Sahana System's Interest Expense was ₹-7 Mil. Its Operating Income was ₹550 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹6 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*549.836/-7.478
=73.53

Sahana System's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the six months ended in Mar. 2025, Sahana System's Interest Expense was ₹-7 Mil. Its Operating Income was ₹550 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹6 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*549.836/-7.478
=73.53

* 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 73.53 mean?
Sahana System (NSE:SAHANA) has a Interest Coverage of 73.53 as of Mar. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sahana System and its competitors. This is 694% above median its historical median of 9.26. Over the past decade, Sahana System's Interest Coverage has ranged from 1.16 to 614.22. According to the industry distribution chart, Sahana System ranks #611 out of 1713 companies in the Software industry, placing it in the top 35.7%.
Is Sahana System's Interest Coverage too high?
Sahana System's current Interest Coverage of 73.53 is 694% above median its 10-year median of 9.26. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 614.22. The Software industry median Interest Coverage is 24.62. Sahana System's value of 73.53 is 198.7% above this industry median. Based on the distribution chart, Sahana System ranks #611 out of 1713 companies in the Software industry, which is above the industry midpoint. Overall, Sahana System has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Sahana System's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Sahana System ranks #611 out of 1713 companies for Interest Coverage. This puts Sahana System in the upper half of its industry. The industry median Interest Coverage is 24.62. Sahana System's value of 73.53 is 198.7% above this benchmark. Historically, Sahana System's own Interest Coverage has ranged from 1.16 to 614.22 over the past decade. While the company's 10-year median is 9.26 vs. the industry median of 24.62, Sahana System 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 Software company?
The median Interest Coverage among Software companies is 24.62, based on 1,713 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. Sahana System's current Interest Coverage of 73.53 is 198.7% 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 Sahana System and its competitors. For the Software industry, the median Interest Coverage is 24.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sahana System's current Interest Coverage is 73.53, which is 694% above median its own 10-year median of 9.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sahana System stock overvalued right now?
Sahana System (NSE:SAHANA) has a current Interest Coverage of 73.53. The current Interest Coverage is 73.53, which is 694% above median its 10-year median of 9.26 and 198.7% above the Software industry median of 24.62. Sahana System's overall GF Score™ is 70/100 with 4 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 Sahana System (NSE:SAHANA), the current Interest Coverage is 73.53 as of Mar. 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.

Sahana System Business Description

Address Sal Hospital Road, 1301, Maple Trade Centre, Nr. Surdhara Circle, Memnagar, Thaltej, Ahmedabad, GJ, IND, 380052
Sahana System Ltd is engaged in the business of offering IT-related services including web app development, mobile application development, AI & ML development, ChatBot development, product prototyping, graphics designing, UI-UX design, SEO & ASO, digital marketing, website & application migration, cyber security and outsourcing of IT services. The company is also engaged in the trading of hardware instruments related to Franking Machines, Computers, LEDs, Laptops, and others. The segments of the company are IT Services and Hardware Trading.
70GF Score

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