Vardhman Special SteelsNSE:VSSL -0.58%75 Interest Coverage is 13.89 as of Mar. 2026, which is 160% above its 10-year median of 5.34. GuruFocus rates NSE:VSSL with a GF Score™ of 75/100 and a GF Value™ of ₹224.05 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 459 Steel companies, Vardhman Special Steels ranks better than 68.19% 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. Vardhman Special Steels's
Operating Income
for the
three
months ended in Mar. 2026 was ₹383 Mil. Vardhman Special Steels's Interest Expense for the
three
months ended in Mar. 2026 was ₹-28 Mil.
Vardhman Special Steels's interest coverage for the quarter that ended in Mar. 2026 was 13.89.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Vardhman Special Steels's Interest Coverage or its related term are showing as below:
NSE:VSSL'
s Interest Coverage Range Over the Past 10 Years
Min: 0.83 Med: 5.34 Max: 11.22
Current: 11.22
NSE:VSSL's Interest Coverage is ranked better than 68.19% of 459
companies
in the Steel industry
Industry Median: 4.48
vs NSE:VSSL: 11.22
Vardhman Special Steels (NSE:VSSL) 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 .
Vardhman Special Steels Interest Coverage Related Terms
Vardhman Special Steels Interest Coverage Historical Data
* Premium members only.
The historical data trend for Vardhman Special Steels'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:VSSL vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Vardhman Special Steels'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.
Vardhman Special Steels Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Vardhman Special Steels's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Vardhman Special Steels's Interest Coverage falls into.
Vardhman Special Steels 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:
* 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.
Vardhman Special Steels (NSE:VSSL) has a Interest Coverage of 13.89 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Vardhman Special Steels and its competitors. This is 160% above median its historical median of 5.34. Over the past decade, Vardhman Special Steels' Interest Coverage has ranged from 0.83 to 11.22. According to the industry distribution chart, Vardhman Special Steels ranks #146 out of 459 companies in the Steel industry, placing it in the top 31.8%.
Is Vardhman Special Steels' Interest Coverage too high?
Vardhman Special Steels' current Interest Coverage of 13.89 is 160% above median its 10-year median of 5.34. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 11.22. The Steel industry median Interest Coverage is 4.48. Vardhman Special Steels' value of 13.89 is 210% above this industry median. Based on the distribution chart, Vardhman Special Steels ranks #146 out of 459 companies in the Steel industry, which is above the industry midpoint. Overall, Vardhman Special Steels has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Vardhman Special Steels ranks #146 out of 459 companies for Interest Coverage. This puts Vardhman Special Steels in the upper half of its industry. The industry median Interest Coverage is 4.48. Vardhman Special Steels' value of 13.89 is 210% above this benchmark. Historically, Vardhman Special Steels' own Interest Coverage has ranged from 0.83 to 11.22 over the past decade. While the company's 10-year median is 5.34 vs. the industry median of 4.48, Vardhman Special Steels 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 Steel company?
The median Interest Coverage among Steel companies is 4.48, based on 459 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. Vardhman Special Steels's current Interest Coverage of 13.89 is 210% 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 Vardhman Special Steels and its competitors. For the Steel industry, the median Interest Coverage is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Special Steels's current Interest Coverage is 13.89, which is 160% above median its own 10-year median of 5.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Special Steels stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Special Steels (NSE:VSSL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹224.05, compared to a current price of ₹282.90 — trading 26.3% above its estimated fair value. The current Interest Coverage is 13.89, which is 160% above median its 10-year median of 5.34 and 210% above the Steel industry median of 4.48. Vardhman Special Steels' overall GF Score™ is 75/100 with 7 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 Vardhman Special Steels (NSE:VSSL), the current Interest Coverage is 13.89 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 Vardhman Special Steels (NSE:VSSL) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Special Steels stock appears to be overvalued.
The current stock price of ₹282.90 is trading 26.3% above its estimated GF Value™ of ₹224.05.
GuruFocus considers Vardhman Special Steels to be Modestly Overvalued.
Key valuation signals for NSE:VSSL:
Interest Coverage: 13.89 (160% above median its 10-year median of 5.34)
GF Value™: ₹224.05 vs. price of ₹282.90 (26.3% above fair value)
Industry Position: 210% above the Steel median (#146 of 459)
No single metric tells the full story. See the NSE:VSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India and also has a presence outside India.
75GF Score
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