Tata MotorsNSE:TMCV -1.93%12 Interest Coverage is 15.23 as of Mar. 2026, which is 316% above its 10-year median of 3.66. GuruFocus rates NSE:TMCV with a GF Score™ of 12/100. The stock has 2 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Tata Motors ranks better than 59.51% 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 Motors's
Operating Income
for the
three
months ended in Mar. 2026 was ₹25,290 Mil. Tata Motors's Interest Expense for the
three
months ended in Mar. 2026 was ₹-1,660 Mil.
Tata Motors's interest coverage for the quarter that ended in Mar. 2026 was 15.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tata Motors's Interest Coverage or its related term are showing as below:
NSE:TMCV'
s Interest Coverage Range Over the Past 10 Years
Min: 1.1 Med: 3.66 Max: 12.09
Current: 12.09
NSE:TMCV's Interest Coverage is ranked better than 59.51% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs NSE:TMCV: 12.09
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 Motors Interest Coverage Related Terms
Tata Motors Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tata Motors'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.
Tata Motors Interest Coverage Chart
Tata Motors Annual Data
Trend
Mar24
Mar25
Mar26
Interest Coverage
1.10
3.66
8.45
Tata Motors Quarterly Data
Mar24
Dec24
Mar25
Dec25
Mar26
Interest Coverage
N/A
3.42
4.96
9.45
15.23
NSE:TMCV vs TSLA, GM, F: Interest Coverage Comparison
For the Auto Manufacturers subindustry, Tata Motors'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 Motors Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tata Motors'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 Motors (NSE:TMCV) has a Interest Coverage of 15.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tata Motors and its competitors. This is 316% above median its historical median of 3.66. Over the past decade, Tata Motors' Interest Coverage has ranged from 1.10 to 12.09. According to the industry distribution chart, Tata Motors ranks #432 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 40.5%.
Is Tata Motors' Interest Coverage too high?
Tata Motors' current Interest Coverage of 15.23 is 316% above median its 10-year median of 3.66. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 12.09. The Vehicles & Parts industry median Interest Coverage is 8.31. Tata Motors' value of 15.23 is 83.3% above this industry median. Based on the distribution chart, Tata Motors ranks #432 out of 1067 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tata Motors has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Tata Motors' Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors ranks #432 out of 1067 companies for Interest Coverage. This puts Tata Motors in the upper half of its industry. The industry median Interest Coverage is 8.31. Tata Motors' value of 15.23 is 83.3% above this benchmark. Historically, Tata Motors' own Interest Coverage has ranged from 1.10 to 12.09 over the past decade. While the company's 10-year median is 3.66 vs. the industry median of 8.31, Tata Motors 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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 Motors's current Interest Coverage of 15.23 is 83.3% 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 Tata Motors and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors's current Interest Coverage is 15.23, which is 316% above median its own 10-year median of 3.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Motors stock overvalued right now?
Tata Motors (NSE:TMCV) has a current Interest Coverage of 15.23. The current Interest Coverage is 15.23, which is 316% above median its 10-year median of 3.66 and 83.3% above the Vehicles & Parts industry median of 8.31. Tata Motors' overall GF Score™ is 12/100 with 2 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 Motors (NSE:TMCV), the current Interest Coverage is 15.23 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.
Tata Motors Ltd is an automobile manufacturer, offering a diverse portfolio of smarter, integrated, and safer mobility solutions. It designs, manufactures, and sells a wide range of automotive vehicles. The company also manufactures engines for industrial applications. Its operating segments consist of: a) Automotive: The Automotive segment consists of Tata Commercial Vehicles and consists of three sub-segments: Commercial Vehicles, Corporate/ unallocable, Intrasegment. b) Others: Others consist of IT services and Insurance Broking services. The majority of revenue is generated from the Tata Commercial Vehicles sub-segment of the Automotive segment. Geographically, the group operates in India, South Korea, and the rest of the world. The majority of its revenue is generated in India.
12GF Score
Get the complete analysis for NSE:TMCV
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:TMCV has been successfully added to your 