SRM ContractorsNSE:SRM +1.09%50 Interest Coverage is 15.61 as of Mar. 2026, which is 102% above its 10-year median of 7.72. GuruFocus rates NSE:SRM with a GF Score™ of 50/100. The stock has 1 warning sign investors should review. Among 1,349 Construction companies, SRM Contractors ranks better than 64.49% 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. SRM Contractors's
Operating Income
for the
three
months ended in Mar. 2026 was ₹689 Mil. SRM Contractors's Interest Expense for the
three
months ended in Mar. 2026 was ₹-44 Mil.
SRM Contractors's interest coverage for the quarter that ended in Mar. 2026 was 15.61.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for SRM Contractors's Interest Coverage or its related term are showing as below:
NSE:SRM'
s Interest Coverage Range Over the Past 10 Years
Min: 5.25 Med: 7.72 Max: 16.02
Current: 16.02
NSE:SRM's Interest Coverage is ranked better than 64.49% of 1349
companies
in the Construction industry
Industry Median: 7.92
vs NSE:SRM: 16.02
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 .
SRM Contractors Interest Coverage Related Terms
SRM Contractors Interest Coverage Historical Data
* Premium members only.
The historical data trend for SRM Contractors'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:SRM vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, SRM Contractors'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.
SRM Contractors Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, SRM Contractors's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SRM Contractors'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.
SRM Contractors (NSE:SRM) has a Interest Coverage of 15.61 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SRM Contractors and its competitors. This is 102% above median its historical median of 7.72. Over the past decade, SRM Contractors' Interest Coverage has ranged from 5.25 to 16.02. According to the industry distribution chart, SRM Contractors ranks #479 out of 1349 companies in the Construction industry, placing it in the top 35.5%.
Is SRM Contractors' Interest Coverage too high?
SRM Contractors' current Interest Coverage of 15.61 is 102% above median its 10-year median of 7.72. Over the past 10 years, this metric has ranged from a low of 5.25 to a high of 16.02. The Construction industry median Interest Coverage is 7.92. SRM Contractors' value of 15.61 is 97.1% above this industry median. Based on the distribution chart, SRM Contractors ranks #479 out of 1349 companies in the Construction industry, which is above the industry midpoint. Overall, SRM Contractors has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does SRM Contractors' Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, SRM Contractors ranks #479 out of 1349 companies for Interest Coverage. This puts SRM Contractors in the upper half of its industry. The industry median Interest Coverage is 7.92. SRM Contractors' value of 15.61 is 97.1% above this benchmark. Historically, SRM Contractors' own Interest Coverage has ranged from 5.25 to 16.02 over the past decade. While the company's 10-year median is 7.72 vs. the industry median of 7.92, SRM Contractors 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 Construction company?
The median Interest Coverage among Construction companies is 7.92, based on 1,349 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. SRM Contractors's current Interest Coverage of 15.61 is 97.1% 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 SRM Contractors and its competitors. For the Construction industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SRM Contractors's current Interest Coverage is 15.61, which is 102% above median its own 10-year median of 7.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRM Contractors stock overvalued right now?
SRM Contractors (NSE:SRM) has a current Interest Coverage of 15.61. The current Interest Coverage is 15.61, which is 102% above median its 10-year median of 7.72 and 97.1% above the Construction industry median of 7.92. SRM Contractors' overall GF Score™ is 50/100 with 1 warning sign 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 SRM Contractors (NSE:SRM), the current Interest Coverage is 15.61 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.
SRM Contractors Ltd is an engineering, construction, and development company. It is engaged in the construction of roads (including bridges), tunnels, drainage systems, irrigation projects, food control infrastructure, slope stabilisation works, and other miscellaneous civil construction activities in Jammu and Kashmir and Ladakh. The business of the company is segregated into the following core service verticals: Road Projects, Tunnel Projects, Slope Stabilization, and Miscellaneous Civil Construction. It undertakes construction works both as an EPC contractor and on an item rate basis for infrastructure projects.
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