Tata Power CoNSE:TATAPOWER -0.26%80 Interest Coverage is 1.02 as of Mar. 2026, which is 16% below its 10-year median of 1.22. GuruFocus rates NSE:TATAPOWER with a GF Score™ of 80/100 and a GF Value™ of ₹388.42 (Fairly Valued). The stock has 5 warning signs investors should review. Among 321 Utilities - Independent Power Producers companies, Tata Power Co ranks worse than 69.47% 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. Tata Power Co's
Operating Income
for the
three
months ended in Mar. 2026 was ₹13,190 Mil. Tata Power Co's Interest Expense for the
three
months ended in Mar. 2026 was ₹-12,953 Mil.
Tata Power Co's interest coverage for the quarter that ended in Mar. 2026 was 1.02.
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. Tata Power Co Ltd interest coverage is 1.58, which is low.
The historical rank and industry rank for Tata Power Co's Interest Coverage or its related term are showing as below:
NSE:TATAPOWER'
s Interest Coverage Range Over the Past 10 Years
Min: 1.09 Med: 1.22 Max: 2.22
Current: 1.58
NSE:TATAPOWER's Interest Coverage is ranked worse than 69.47% of 321
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.77
vs NSE:TATAPOWER: 1.58
Tata Power Co (NSE:TATAPOWER) 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 .
Tata Power Co Interest Coverage Related Terms
Tata Power Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tata Power Co'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:TATAPOWER vs CEG, VST, NRG: Interest Coverage Comparison
For the Utilities - Independent Power Producers subindustry, Tata Power Co'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.
Tata Power Co Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Tata Power Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tata Power Co'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.
Tata Power Co (NSE:TATAPOWER) has a Interest Coverage of 1.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tata Power Co and its competitors. This is 16% below median its historical median of 1.22. Over the past decade, Tata Power Co's Interest Coverage has ranged from 1.09 to 2.22. According to the industry distribution chart, Tata Power Co ranks #223 out of 321 companies in the Utilities - Independent Power Producers industry, placing it in the top 69.5%.
Is Tata Power Co's Interest Coverage too high?
Tata Power Co's current Interest Coverage of 1.02 is 16% below median its 10-year median of 1.22. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 2.22. The Utilities - Independent Power Producers industry median Interest Coverage is 2.77. Tata Power Co's value of 1.02 is 63.2% below this industry median. Based on the distribution chart, Tata Power Co ranks #223 out of 321 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Tata Power Co has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tata Power Co's Interest Coverage compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Tata Power Co ranks #223 out of 321 companies for Interest Coverage. This places Tata Power Co in the lower half of its industry. The industry median Interest Coverage is 2.77. Tata Power Co's value of 1.02 is 63.2% below this benchmark. Historically, Tata Power Co's own Interest Coverage has ranged from 1.09 to 2.22 over the past decade. While the company's 10-year median is 1.22 vs. the industry median of 2.77, Tata Power Co 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. Tata Power Co's current Interest Coverage of 1.02 is 63.2% 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 Tata Power Co 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. Tata Power Co's current Interest Coverage is 1.02, which is 16% below median its own 10-year median of 1.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Power Co stock overvalued right now?
Based on GuruFocus' analysis, Tata Power Co (NSE:TATAPOWER) is currently considered Fairly Valued. The stock's GF Value™ is ₹388.42, compared to a current price of ₹385.50 — trading 0.8% below its estimated fair value. The current Interest Coverage is 1.02, which is 16% below median its 10-year median of 1.22 and 63.2% below the Utilities - Independent Power Producers industry median of 2.77. Tata Power Co's overall GF Score™ is 80/100 with 5 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 Tata Power Co (NSE:TATAPOWER), the current Interest Coverage is 1.02 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 Tata Power Co (NSE:TATAPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Power Co stock appears to be undervalued.
The current stock price of ₹385.50 is trading 0.8% below its estimated GF Value™ of ₹388.42.
GuruFocus considers Tata Power Co to be Fairly Valued.
Key valuation signals for NSE:TATAPOWER:
Interest Coverage: 1.02 (16% below median its 10-year median of 1.22)
GF Value™: ₹388.42 vs. price of ₹385.50 (0.8% below fair value)
Industry Position: 63.2% below the Utilities - Independent Power Producers median (#223 of 321)
No single metric tells the full story. See the NSE:TATAPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Power Co Ltd is engaged in the generation, transmission, distribution and trading of electricity. The Group is an integrated power company with an international presence and operates across all segments of the power sector, including Fuel Security and Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. The company segments are Thermal & Hydro, Renewables, Transmission and Distribution, and Other. Maximum revenue is generated from the Transmission and Distribution segment, which comprises transmission and distribution networks, sale of power to retail customers through distribution networks, related ancillary services, and the power trading business. The Company's operations is majorly confined within India.
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