Royal Arc Electrodes (NSE:ROYALARC) Debt-to-EBITDA : 0.01 (As of Mar. 2026) — 80% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NSE:ROYALARC Royal Arc Electrodes Ltd NSE:ROYALARC
19 GF Score
Price ₹157.90
! 5 Warning Signs
View Full Analysis

What is Royal Arc Electrodes Debt-to-EBITDA?

Royal Arc Electrodes NSE:ROYALARC -1.31% 19 Debt-to-EBITDA is 0.01 as of Mar. 2026, which is 80% below its 10-year median of 0.05. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 5 warning signs investors should review. Among 2,330 Industrial Products companies, Royal Arc Electrodes ranks better than 97.77% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Royal Arc Electrodes's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹2.0 Mil. Royal Arc Electrodes's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹0.0 Mil. Royal Arc Electrodes's annualized EBITDA for the quarter that ended in Mar. 2026 was ₹196.4 Mil. Royal Arc Electrodes's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.01.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Royal Arc Electrodes's Debt-to-EBITDA or its related term are showing as below:

NSE:ROYALARC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.01   Med: 0.05   Max: 1.42
Current: 0.02

During the past 5 years, the highest Debt-to-EBITDA Ratio of Royal Arc Electrodes was 1.42. The lowest was 0.01. And the median was 0.05.

NSE:ROYALARC's Debt-to-EBITDA is ranked better than
97.77% of 2330 companies
in the Industrial Products industry
Industry Median: 1.68 vs NSE:ROYALARC: 0.02

Royal Arc Electrodes  (NSE:ROYALARC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Royal Arc Electrodes Debt-to-EBITDA Related Terms


Royal Arc Electrodes Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Royal Arc Electrodes's Debt-to-EBITDA 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.

Royal Arc Electrodes Debt-to-EBITDA Chart

Royal Arc Electrodes Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
1.42 0.09 0.01 0.05 0.01

Royal Arc Electrodes Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25 Mar26
Debt-to-EBITDA Get a 7-Day Free Trial N/A N/A 0.18 0.04 0.01

NSE:ROYALARC vs VRT, BE: Debt-to-EBITDA Comparison

For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


Royal Arc Electrodes Debt-to-EBITDA vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Royal Arc Electrodes's Debt-to-EBITDA falls into.


NSE:ROYALARC
19GF Score
Royal Arc Electrodes Ltd NSE:ROYALARC
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Royal Arc Electrodes Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Royal Arc Electrodes's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.038 + 0) / 173.794
=0.01

Royal Arc Electrodes's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2.038 + 0) / 196.416
=0.01

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.01 mean?
Royal Arc Electrodes (NSE:ROYALARC) has a Debt-to-EBITDA of 0.01 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Royal Arc Electrodes. This is 80% below median its historical median of 0.05. Over the past decade, Royal Arc Electrodes' Debt-to-EBITDA has ranged from 0.01 to 1.42. According to the industry distribution chart, Royal Arc Electrodes ranks #52 out of 2330 companies in the Industrial Products industry, placing it in the top 2.2%.
Is Royal Arc Electrodes' Debt-to-EBITDA too high?
Royal Arc Electrodes' current Debt-to-EBITDA of 0.01 is 80% below median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 1.42. The Industrial Products industry median Debt-to-EBITDA is 1.68. Royal Arc Electrodes' value of 0.01 is 99.4% below this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #52 out of 2330 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Debt-to-EBITDA compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #52 out of 2330 companies for Debt-to-EBITDA. This places Royal Arc Electrodes in the top 2% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.68. Royal Arc Electrodes' value of 0.01 is 99.4% below this benchmark. Historically, Royal Arc Electrodes' own Debt-to-EBITDA has ranged from 0.01 to 1.42 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 1.68, Royal Arc Electrodes has consistently been below 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 Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.68, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Arc Electrodes's current Debt-to-EBITDA of 0.01 is 99.4% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Royal Arc Electrodes. For the Industrial Products industry, the median Debt-to-EBITDA is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current Debt-to-EBITDA is 0.01, which is 80% below median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Debt-to-EBITDA of 0.01. The current Debt-to-EBITDA is 0.01, which is 80% below median its 10-year median of 0.05 and 99.4% below the Industrial Products industry median of 1.68. Royal Arc Electrodes' overall GF Score™ is 19/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Debt-to-EBITDA is 0.01 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.

Royal Arc Electrodes Business Description

Address S.V. Road, 72 B, Bombay Talkies Compound, Malad West, Mumbai, MH, IND, 400064
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score

Get the complete analysis for NSE:ROYALARC

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹157.90
Price