Royal Arc Electrodes Ltd. – Company Report
1. Company Overview
Royal Arc Electrodes Ltd., established in 1996 and headquartered in Gujarat, is a leading manufacturer in India’s welding consumables sector. The company is ISO 9001:2015 certified and is recognized for its innovation, technical reliability, and a wide portfolio that includes welding electrodes, flux-cored wires, MIG/TIG wires, and associated accessories. It operates a 287,000 sq. ft. vertically integrated production facility with in-house R&D and quality control. With a workforce of approximately 200–500 employees, Royal Arc exports to over 45 countries, maintaining a strong foothold across global industrial sectors.
Key Highlights
- Incorporated: 1996
- Headquarters: Gujarat, India
- Employees: ~200–500
- Certifications: ISO 9001:2015; first-mover in stainless steel flux-cored wire manufacturing in India
- Manufacturing Facility: Large integrated plant with proprietary R&D
- Listed: NSE SME
- Leadership: Bipin Sanghvi (Chairman & MD)
- Export Markets: 45+ countries globally
- Unique Strengths: High vertical integration, global brand presence, specialized alloy formulations, strong industrial clientele
2. Products and Services
Welding Electrodes
- Mild steel, stainless steel, non-ferrous, low hydrogen, hard-facing, and specialty electrodes
Flux-Cored Wires
- For stainless/mild steel and wear-resistance applications, with custom formulations
MIG/TIG Wires
- Copper-coated and custom-engineered wire variants
Ancillary Products and Consumables
- Electro-slag strip cladding wires, SAW flux, resin bonded abrasives, welding accessories, cladding tanks
Sector Focus
- Infrastructure, railways, shipyards, refineries, power plants, engineering, telecom, and heavy fabrication
3. Recent News and Business Developments (2025)
- Raised ₹36 crore via IPO (fresh issue + OFS); listed on 21st February 2025
- Appointed new board members and CFO post-listing (May–July 2025); received SEBI exemptions applicable to SME listings
- Introduced new hard-facing and stainless electrodes designed for turbines, pumps, and critical equipment
- Announced ongoing expansion of production capacity and technology modernization to meet growing export and advanced demand
4. Financial Performance (FY2025)
| Metric | FY2025 |
|---|---|
| Revenue | ₹102 crore |
| Operating Profit | ₹15 crore |
| Operating Margin | 14.7% |
| Net Profit (PAT) | ₹9 crore |
| Net Profit Margin | 9% |
| EPS | ₹8.12 |
| Net Debt | Negative (strong liquidity) |
| Dividend | None declared (reinvested) |