Which screener has a ROCE filter in India in 2026?

Quick Answer: Multibagg's screener carries ROCE conditions in its prebuilt stock screens, as ROCE TTM, ROCE 3Y and ROCE 5Y (for example, ROCE TTM ≥ 15%), checked on 18 September 2026. ROCE divides operating profit before interest and tax by capital employed, so the filter shows how much profit each rupee of long-term capital produced.

Return on capital employed (ROCE) is a ratio that fundamental screeners in India commonly expose as a minimum or maximum condition. Applying the filter is easy. Reading the number behind it is harder, because companies, data providers and textbooks do not all compute capital employed the same way.

This guide covers where the filter sits, how the ratio is built from a filed balance sheet, how to use it in a screen, and how it differs from return on equity (ROE). Every company figure below comes from an annual report filed with NSE and carries its date.

What ROCE conditions does Multibagg's screener carry?

Multibagg's screener shows ROCE TTM, ROCE 3Y and ROCE 5Y as filter conditions in its prebuilt stock screens (checked 18 September 2026). For building your own screen, the same page offers a builder it describes as having "over 200+ filters".

Here is how two of the prebuilt screens use the ROCE fields: one pairs ROCE TTM ≥ 15% with P/E TTM between 0 and 25, and also carries Debt/Equity ≤ 1 and market cap ≥ ₹5,000 crore. Another stacks Debt/Equity ≤ 1, ROCE TTM ≥ 18%, ROCE 3Y ≥ 15%, ROCE 5Y ≥ 15%, market cap ≥ ₹5,000 crore and P/E TTM ≤ 30. These thresholds are the screens' own settings. They are not benchmarks for what a company ought to earn.

Screener.in, Tickertape, Trendlyne and StockEdge, among other platforms Indian investors use, also run stock screeners. Filter names and formulas differ. Check each one's own filter list and definition before comparing results.

Pay attention to the labels. TTM stands for trailing twelve months and reflects the latest four quarters, while the 3-year and 5-year versions (3Y and 5Y) look across a longer stretch, so one unusual year carries less weight. That is how a company can clear a TTM threshold on one strong year and still miss the 5-year one.

What is ROCE and what does it measure?

ROCE measures operating profit, before interest and tax, earned on all the long-term capital in a business, whether that capital came from shareholders or lenders. It is expressed as a percentage.

Its "capital employed" half sets it apart from other return ratios. Equity alone ignores borrowed money, so a company funded largely by debt can look efficient on equity returns. ROCE puts equity and long-term debt in the same denominator, so the ratio tests the business's operations rather than its financing choices. Year-by-year shifts in debt and cash on Indian balance sheets, tracked in Multibagg's review of balance sheet trends from 2016 to 2026, change the denominator directly.

In the stock market, ROCE is mostly read three ways: against the company's own history, against sector peers, and against the company's cost of borrowing. One year's figure says little by itself.

ROCE fits capital-heavy industries such as cement, metals, power, chemicals and manufacturing. It is a weak tool for banks and NBFCs, where borrowed money is the raw material rather than a financing choice; analysts usually use return on assets and ROE for lenders instead.

How is ROCE calculated for companies in India in 2026?

The common formula is ROCE = EBIT ÷ capital employed × 100, where capital employed = total assets − current liabilities, which equals equity plus non-current liabilities. As an illustration, EBIT of ₹150 crore on ₹1,000 crore of capital employed gives a ROCE of 15%.

EBIT is profit before interest and tax. It is not EBITDA, which also adds back depreciation, and how companies adjust these lines is covered in Multibagg's explainer on EBITDA margin adjustments. Current liabilities are those due within twelve months or the normal operating cycle, as Indian companies' accounting policies state.

In 2026, filed Indian accounts show companies defining the ratio their own way. The Asian Paints Integrated Annual Report 2025-26, filed with NSE defines ROCE as profit before interest (excluding lease interest), exceptional items and tax, divided by average capital employed, where capital employed is total equity plus borrowings.

Asian Paints Ltd, standalone, FY 2025-26 (₹ crore; balance sheet as at 31 March 2026; source: annual report filed with NSE, 12 June 2026)

The two year-end denominators differ by ₹1,107.15 crore: non-current lease liabilities, provisions and deferred tax, among others, count in the first but not the second, while current borrowings count only in the second. So a screener and a filing using different definitions will not match.

How do you screen Indian stocks by ROCE?

Set a ROCE condition in a screener, add a leverage filter beside it, then check each result against the company's filed accounts. Listed companies file quarterly results within 45 days of each quarter-end and annual audited results within 60 days of the financial year-end.

Those deadlines come from Regulation 33 of SEBI's Listing Obligations and Disclosure Requirements Regulations, amended up to 14 July 2026. The same regulation requires a statement of assets and liabilities only with half-yearly results, which is how a TTM ROCE can pair fresh quarterly profit with a balance sheet up to six months old.

A practical sequence looks like this:

1. Choose the horizon: ROCE 3Y or 5Y dilutes a one-off year; TTM shows the latest run-rate.
2. Add Debt/Equity, as Multibagg's prebuilt screens do, to separate operating returns from leverage.
3. Exclude banks and NBFCs by sector.
4. Check which companies have reported this season on the Multibagg earnings tracker.
5. Open the annual report's key financial ratios note to see the company's own ROCE definition.

Whatever a screen returns is a list of companies meeting numeric conditions on a given date, a starting point for reading filings. It is not a signal about any stock.

ROCE vs ROE: what is the difference?

ROE divides profit after tax by shareholders' equity, while ROCE divides profit before interest and tax by equity plus debt. For Asian Paints (standalone, FY 2025-26), reported ROE was 21.34% against ROCE of 28.90%.

That gap has two mechanical causes. ROCE is measured before tax, so its numerator is larger than the after-tax profit in ROE. And Asian Paints carried little debt, with a reported debt-equity ratio of 0.059 at 31 March 2026, so its two denominators were close. Neither ratio is a per-share figure; earnings per share (EPS) spreads profit across shares instead.

Debt pushes the ratios apart in the other direction: when a company borrows at a rate below its operating return, ROE rises faster than ROCE, because equity is a smaller base than equity plus debt. That is why a high ROE with a low ROCE usually points to leverage rather than operating strength. Recent shifts in leverage and cash across listed companies are tracked in Multibagg's 2026 analysis of balance sheet leverage.

What is a good ROCE ratio range?

A good ROCE ratio range has no SEBI, NSE or BSE definition, so the useful range is the company's own record and its peers' figures. Asian Paints' standalone ROCE stayed between 28.4% and 41.2% from FY 2016-17 to FY 2025-26, per the ten-year review in its annual report filed with NSE.

Within that decade the ratio fell recently. It was 41.2% in FY 2023-24, then 28.4% in FY 2024-25 and 28.9% in FY 2025-26. So the latest reading sits at the low end of the company's own ten-year range, a comparison no single-year threshold can show.

Screens give a working range. Multibagg's prebuilt screens set ROCE TTM floors of 15% and 18% (checked 18 September 2026), so a figure in the high teens or above clears the cut-offs those screens use. They are screen settings, not benchmarks every sector can meet: capital-heavy industries such as utilities usually report lower ROCE than asset-light ones.

Beyond the company's own record, two further checks complete the picture. Sector peers show what a given industry's capital intensity allows, and a return below the interest rate on a company's debt means borrowed capital earns less than it costs, whatever the absolute percentage. Reading ROCE and ROE across several years shows whether returns come from operations or from the capital structure.

To see ROCE alongside ROE for any listed company, open its page from Multibagg's directory of Indian stocks and compare the multi-year figures with the filed annual report.

Frequently Asked Questions

Is ROCE calculated on standalone or consolidated figures?

It can be either, and the figures differ: Asian Paints reported FY 2025-26 ROCE of 28.9% standalone and 27.6% consolidated. Under SEBI's LODR Regulation 33, a listed company with subsidiaries files consolidated results alongside standalone ones. Check which basis a screener uses before comparing its figure with a filing.

Is ROCE the same as the return on capital employed ratio?

Yes. ROCE is the short form of return on capital employed, so a screener column labelled ROCE and a filing that spells the ratio out mean the same measure. The name does not fix the inputs, though. Before comparing figures, read each source's stated definition, which Asian Paints gives in its annual report's key financial ratios note.

Why can ROCE be negative?

ROCE turns negative when earnings before interest and tax are below zero, meaning the business made an operating loss. A screen with a minimum threshold drops such a company: Multibagg's High ROIC Screen, for example, keeps only companies with ROCE TTM of 15% or more (checked 18 September 2026). So a negative figure rarely appears in filtered results.

Does ROCE include cash on the balance sheet?

The standard total-assets-minus-current-liabilities formula includes cash, because cash is part of total assets. Cash earns treasury income rather than operating profit, so large cash balances drag ROCE down. Some analysts therefore subtract surplus cash from capital employed, which is another reason one company's ROCE can differ across data sources.

How often does a TTM ROCE figure change?

A TTM ROCE changes whenever a new quarter's results are filed, which happens four times a year. Under SEBI rules, quarterly results arrive within 45 days of quarter-end, and the last quarter comes with annual audited results within 60 days. The balance sheet side updates only twice a year, with half-yearly and annual results.

Disclaimer: This article is for educational and informational purposes only. Multibagg AI is not a SEBI-registered investment adviser or research analyst, and it does not provide investment, financial, legal or tax advice. Nothing here is a recommendation to buy, sell, hold or invest in any security. Market data is shown as of the dates stated and may have changed since. Please consult a SEBI-registered adviser before making any investment decision.