Royal Arc ElectrodesNSE:ROYALARC 19 Gross Margin % is 27.01% as of Mar. 2026, which is 11% below its 10-year median of 30.44. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 2,993 Industrial Products companies, Royal Arc Electrodes ranks better than 50.45% on this metric.
The historical rank and industry rank for Royal Arc Electrodes's Gross Margin % or its related term are showing as below:
NSE:ROYALARC'
s Gross Margin % Range Over the Past 10 Years
Min: 24.53 Med: 30.44 Max: 33.41
Current: 27.01
During the past 5 years, the highestGross Margin % of Royal Arc Electrodes was 33.41%. The lowest was 24.53%. And the median was 30.44%.
NSE:ROYALARC's Gross Margin % is ranked better than 50.45% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs NSE:ROYALARC: 27.01
Royal Arc Electrodes had a gross margin of 27.01% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Royal Arc Electrodes was 0.00% per year.
Royal Arc Electrodes (NSE:ROYALARC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Royal Arc Electrodes had a gross margin of 27.01% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Royal Arc Electrodes Gross Margin % Related Terms
Royal Arc Electrodes Gross Margin % Historical Data
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The historical data trend for Royal Arc Electrodes's Gross Margin % 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.
NSE:ROYALARC vs VRT, BE: Gross Margin % Comparison
For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Royal Arc Electrodes (NSE:ROYALARC) has a Gross Margin % of 27.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Royal Arc Electrodes and its competitors. This is 11% below median its historical median of 30.44. Over the past decade, Royal Arc Electrodes' Gross Margin % has ranged from 24.53 to 33.41. According to the industry distribution chart, Royal Arc Electrodes ranks #1483 out of 2993 companies in the Industrial Products industry, placing it in the top 49.5%.
Is Royal Arc Electrodes' Gross Margin % too high?
Royal Arc Electrodes' current Gross Margin % of 27.01% is 11% below median its 10-year median of 30.44. Over the past 10 years, this metric has ranged from a low of 24.53 to a high of 33.41. The Industrial Products industry median Gross Margin % is 26.83. Royal Arc Electrodes' value of 27.01% is 0.7% above this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #1483 out of 2993 companies in the Industrial Products industry, which is above the industry midpoint. 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' Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #1483 out of 2993 companies for Gross Margin %. This puts Royal Arc Electrodes in the upper half of its industry. The industry median Gross Margin % is 26.83. Royal Arc Electrodes' value of 27.01% is 0.7% above this benchmark. Historically, Royal Arc Electrodes' own Gross Margin % has ranged from 24.53 to 33.41 over the past decade. While the company's 10-year median is 30.44 vs. the industry median of 26.83, Royal Arc Electrodes 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 Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.83, based on 2,993 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Arc Electrodes's current Gross Margin % of 27.01% is 0.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Royal Arc Electrodes and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current Gross Margin % is 27.01%, which is 11% below median its own 10-year median of 30.44. 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 Gross Margin % of 27.01%. The current Gross Margin % is 27.01%, which is 11% below median its 10-year median of 30.44 and 0.7% above the Industrial Products industry median of 26.83. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Gross Margin % is 27.01% 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 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
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