Tera SoftwareNSE:TERASOFT +0.10%74 Interest Coverage is 4.97 as of Mar. 2026, which is 54% above its 10-year median of 3.23. GuruFocus rates NSE:TERASOFT with a GF Score™ of 74/100 and a GF Value™ of ₹325.20 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,704 Software companies, Tera Software ranks worse than 78.23% 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. Tera Software's
Operating Income
for the
three
months ended in Mar. 2026 was ₹95 Mil. Tera Software's Interest Expense for the
three
months ended in Mar. 2026 was ₹-19 Mil.
Tera Software's interest coverage for the quarter that ended in Mar. 2026 was 4.97.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tera Software's Interest Coverage or its related term are showing as below:
NSE:TERASOFT'
s Interest Coverage Range Over the Past 10 Years
Min: 0.86 Med: 3.23 Max: 4.93
Current: 4.83
NSE:TERASOFT's Interest Coverage is ranked worse than 78.23% of 1704
companies
in the Software industry
Industry Median: 24.75
vs NSE:TERASOFT: 4.83
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 .
Tera Software Interest Coverage Related Terms
Tera Software Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tera Software'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:TERASOFT vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Tera Software'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.
Tera Software Interest Coverage vs Software Industry
For the Software industry and Technology sector, Tera Software's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tera Software'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.
Tera Software (NSE:TERASOFT) has a Interest Coverage of 4.97 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tera Software and its competitors. This is 54% above median its historical median of 3.23. Over the past decade, Tera Software's Interest Coverage has ranged from 0.86 to 4.93. According to the industry distribution chart, Tera Software ranks #1333 out of 1704 companies in the Software industry, placing it in the top 78.2%.
Is Tera Software's Interest Coverage too high?
Tera Software's current Interest Coverage of 4.97 is 54% above median its 10-year median of 3.23. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 4.93. The Software industry median Interest Coverage is 24.75. Tera Software's value of 4.97 is 79.9% below this industry median. Based on the distribution chart, Tera Software ranks #1333 out of 1704 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Tera Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #1333 out of 1704 companies for Interest Coverage. This places Tera Software in the lower half of its industry. The industry median Interest Coverage is 24.75. Tera Software's value of 4.97 is 79.9% below this benchmark. Historically, Tera Software's own Interest Coverage has ranged from 0.86 to 4.93 over the past decade. While the company's 10-year median is 3.23 vs. the industry median of 24.75, Tera Software 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 Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,704 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. Tera Software's current Interest Coverage of 4.97 is 79.9% 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 Tera Software and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current Interest Coverage is 4.97, which is 54% above median its own 10-year median of 3.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹325.20, compared to a current price of ₹400.05 — trading 23% above its estimated fair value. The current Interest Coverage is 4.97, which is 54% above median its 10-year median of 3.23 and 79.9% below the Software industry median of 24.75. Tera Software's overall GF Score™ is 74/100 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 Tera Software (NSE:TERASOFT), the current Interest Coverage is 4.97 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be overvalued.
The current stock price of ₹400.05 is trading 23% above its estimated GF Value™ of ₹325.20.
GuruFocus considers Tera Software to be Modestly Overvalued.
Key valuation signals for NSE:TERASOFT:
Interest Coverage: 4.97 (54% above median its 10-year median of 3.23)
GF Value™: ₹325.20 vs. price of ₹400.05 (23% above fair value)
Industry Position: 79.9% below the Software median (#1333 of 1704)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
74GF Score
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