Debt to Equity (D/E)

How much the company has borrowed for every ₹1 of its own money.

Total borrowings divided by shareholders' equity. A D/E of 1.48 means ₹1.48 borrowed for every ₹1 of shareholders' money.

Debt is not bad in itself — it is how most businesses fund growth, and it magnifies returns when things go well. The problem is that it magnifies losses just as faithfully, and interest must be paid whether or not the year went to plan.

What counts as "high" depends entirely on the industry. Lenders, and companies with a financing arm, carry high D/E by the nature of the business. A software company with D/E above 1 would be unusual.

Borrowings ₹32,000 crore against equity ₹22,000 crore → D/E = 1.48.

Under 0.5 — conservatively financed

0.5 to 1 — normal for most manufacturers

Above 1.5 — meaningful leverage; check interest coverage before anything else

Read it with interest coverage. D/E measures the size of the debt; coverage measures whether profits can comfortably service it. A big debt that is easily serviced is far safer than a small one that is not.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.