Induction motors consume a great portion of the generated electrical energy. Moreover, most of them work at underloaded conditions, so they have low efficiencies and waste a lot of energy. Because of this, the efficiency estimation of in-service induction motors is a matter of great importance. This efficiency estimation is usually performed through indirect methods, which do not require invasive measurements of torque or speed. One of these methods is the modified Air-Gap Torque (AGT) method, which only requires voltage and current data, the stator resistance value, and the mechanical losses. This paper approaches the computation of a modified stator resistance including the mechanical losses effect to be applied in the AGT method for torque and efficiency estimation of induction motors. Some improvements are proposed in the computation of this resistance by using a direct method, as well as the possibility to estimate this parameter directly from the nameplate data of the induction motor. The proposed methodology only relies on line voltages, currents, and nameplate data and is not intrusive. The proposed methodology is analyzed through simulation and validated through experimental results with three-phase induction motors. Also, a comparison of methods for in-service induction motors efficiency estimation is presented for the tested motors.