Royal Arc Electrodes (NSE:ROYALARC) Operating Income: ₹66.6 Mil (TTM As of Mar. 2026)

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NSE:ROYALARC Royal Arc Electrodes Ltd NSE:ROYALARC
19 GF Score
Price ₹148.00
! 4 Warning Signs
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What is Royal Arc Electrodes Operating Income?

Royal Arc Electrodes NSE:ROYALARC 19 Operating Income is ₹66.6 Mil as of Mar. 2026. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review.

Royal Arc Electrodes's Operating Income for the six months ended in Mar. 2026 was ₹66.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹66.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Royal Arc Electrodes's Operating Income for the six months ended in Mar. 2026 was ₹66.6 Mil. Royal Arc Electrodes's Revenue for the six months ended in Mar. 2026 was ₹632.2 Mil. Therefore, Royal Arc Electrodes's Operating Margin % for the quarter that ended in Mar. 2026 was 10.53%.

Royal Arc Electrodes's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Royal Arc Electrodes's annualized ROC % for the quarter that ended in Mar. 2026 was 14.73%. Royal Arc Electrodes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 28.09%.

Royal Arc Electrodes  (NSE:ROYALARC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Royal Arc Electrodes's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=133.176 * ( 1 - 27.01% )/( (568.079 + 752.137)/ 2 )
=97.2051624/660.108
=14.73 %

where

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=808.528 - 47.787 - ( 192.662 - max(0, 76.505 - 565.539+192.662))
=568.079

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=912.312 - 15.274 - ( 144.901 - max(0, 86.275 - 586.484+144.901))
=752.137

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Royal Arc Electrodes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=158.624/( ( (220.459 + max(302.753, 0)) + (299.386 + max(306.984, 0)) )/ 2 )
=158.624/( ( 523.212 + 606.37 )/ 2 )
=158.624/564.791
=28.09 %

where Working Capital is:

Working Capital(Q: Mar. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(209.331 + 142.818 + 18.961) - (47.787 + 0 + 20.57)
=302.753

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(257.5 + 131.826 + 1.8950000000001) - (15.274 + 0 + 68.963)
=306.984

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Royal Arc Electrodes's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=66.588/632.209
=10.53 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Royal Arc Electrodes Operating Income Related Terms

Royal Arc Electrodes Operating Income Historical Data

* Premium members only.

The historical data trend for Royal Arc Electrodes's Operating Income 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 Operating Income Chart

Royal Arc Electrodes Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
24.20 132.04 157.12 121.73 119.13

Royal Arc Electrodes Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25 Mar26
Operating Income Get a 7-Day Free Trial 0.00 0.00 40.11 81.62 66.59
NSE:ROYALARC
19GF Score
Royal Arc Electrodes Ltd NSE:ROYALARC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Royal Arc Electrodes Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was ₹66.6 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of ₹66.6 Mil mean?
Royal Arc Electrodes (NSE:ROYALARC) has a Operating Income of ₹66.6 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Royal Arc Electrodes and its competitors.
Is Royal Arc Electrodes' Operating Income too high?
Royal Arc Electrodes' current Operating Income is ₹66.6 Mil. 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' Operating Income compare to VRT and BE?
Royal Arc Electrodes' Operating Income of ₹66.6 Mil can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Industrial Products company?
A good Operating Income depends on the Industrial Products industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Royal Arc Electrodes and its competitors. Royal Arc Electrodes's current Operating Income is ₹66.6 Mil. 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 Operating Income of ₹66.6 Mil. The current Operating Income is ₹66.6 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Operating Income is ₹66.6 Mil 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

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

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