Debt Check · Intermediate · Pro filter
Net debt / EBITDA: what it means and how to read it
Debt minus cash, divided by yearly EBITDA: roughly how many years of operating profit it would take to pay off the debt.
What is Net debt / EBITDA?
Debt minus cash, divided by yearly EBITDA: roughly how many years of operating profit it would take to pay off the debt.
A worked example
Debt of ₹3,000 Cr less cash of ₹500 Cr is net debt of ₹2,500 Cr. With EBITDA of ₹1,000 Cr the ratio is 2.5: two and a half years of operating profit.
Why does Net debt / EBITDA matter?
Shows how heavy the debt is compared with what the business earns.
How do you read Net debt / EBITDA?
Below 2× is comfortable, above 4× is heavy. Negative means more cash than debt.
Reading scale
In ×
Comfortable
Watch
Heavy
0×2×4×6×+
On the scale used here, below 2× reads as comfortable, 2× to 4× reads as watch, and 4× and above reads as heavy.
Lower is usually better.
What is a typical Net debt / EBITDA in India today?
The median across the 3995 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 71 companies0.29
Mid Cap · 117 companies-0.08
Small Cap · 3807 companies0.93
By industry
Median, largest industries first
Pharmaceuticals · 1820.47
Computers - Software & Consulting · 55-0.71
Refineries & Marketing · 81.38
Power Generation · 274.41
Heavy Electrical Equipment · 41-0.24
Auto Components & Equipments · 1150.84
Civil Construction · 1181.28
Cement & Cement Products · 301.59
Aerospace & Defense · 30-0.15
Iron & Steel · 121.08
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.