Royal Arc ElectrodesNSE:ROYALARC 19 Interest Coverage is 83.65 as of Mar. 2026, which is 67% above its 10-year median of 50.01. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 2,322 Industrial Products companies, Royal Arc Electrodes ranks better than 79.2% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Royal Arc Electrodes's
Operating Income
for the
six
months ended in Mar. 2026 was ₹66.6 Mil. Royal Arc Electrodes's Interest Expense for the
six
months ended in Mar. 2026 was ₹-0.8 Mil.
Royal Arc Electrodes's interest coverage for the quarter that ended in Mar. 2026 was 83.65.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Royal Arc Electrodes Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Royal Arc Electrodes's Interest Coverage or its related term are showing as below:
NSE:ROYALARC'
s Interest Coverage Range Over the Past 10 Years
Min: 2.62 Med: 50.01 Max: 313.61
Current: 83.65
NSE:ROYALARC's Interest Coverage is ranked better than 79.2% of 2322
companies
in the Industrial Products industry
Industry Median: 14.775
vs NSE:ROYALARC: 83.65
Royal Arc Electrodes (NSE:ROYALARC) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Royal Arc Electrodes Interest Coverage Related Terms
Royal Arc Electrodes Interest Coverage Historical Data
* Premium members only.
The historical data trend for Royal Arc Electrodes's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:ROYALARC vs VRT, BE: Interest Coverage Comparison
For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes's Interest Coverage falls into.
Royal Arc Electrodes Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (NSE:ROYALARC) has a Interest Coverage of 83.65 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royal Arc Electrodes and its competitors. This is 67% above median its historical median of 50.01. Over the past decade, Royal Arc Electrodes' Interest Coverage has ranged from 2.62 to 313.61. According to the industry distribution chart, Royal Arc Electrodes ranks #483 out of 2322 companies in the Industrial Products industry, placing it in the top 20.8%.
Is Royal Arc Electrodes' Interest Coverage too high?
Royal Arc Electrodes' current Interest Coverage of 83.65 is 67% above median its 10-year median of 50.01. Over the past 10 years, this metric has ranged from a low of 2.62 to a high of 313.61. The Industrial Products industry median Interest Coverage is 14.78. Royal Arc Electrodes' value of 83.65 is 466.2% above this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #483 out of 2322 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' Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #483 out of 2322 companies for Interest Coverage. This places Royal Arc Electrodes in the top 21% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.78. Royal Arc Electrodes' value of 83.65 is 466.2% above this benchmark. Historically, Royal Arc Electrodes' own Interest Coverage has ranged from 2.62 to 313.61 over the past decade. While the company's 10-year median is 50.01 vs. the industry median of 14.78, 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.78, based on 2,322 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Arc Electrodes's current Interest Coverage of 83.65 is 466.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royal Arc Electrodes and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current Interest Coverage is 83.65, which is 67% above median its own 10-year median of 50.01. 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 Interest Coverage of 83.65. The current Interest Coverage is 83.65, which is 67% above median its 10-year median of 50.01 and 466.2% above the Industrial Products industry median of 14.78. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Interest Coverage is 83.65 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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