Aurobindo PharmaBOM:524804 -1.38%88 Gross Margin % is 60.82% as of Mar. 2026, which is 12% above its 10-year median of 54.27. GuruFocus rates BOM:524804 with a GF Score™ of 88/100 and a GF Value™ of ₹1,333.66 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 943 Drug Manufacturers companies, Aurobindo Pharma ranks better than 67.76% on this metric.
The historical rank and industry rank for Aurobindo Pharma's Gross Margin % or its related term are showing as below:
BOM:524804'
s Gross Margin % Range Over the Past 10 Years
Min: 51.48 Med: 54.27 Max: 59.6
Current: 59.6
During the past 13 years, the highestGross Margin % of Aurobindo Pharma was 59.60%. The lowest was 51.48%. And the median was 54.27%.
BOM:524804's Gross Margin % is ranked better than 67.76% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:524804: 59.60
Aurobindo Pharma had a gross margin of 60.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aurobindo Pharma was 1.60% per year.
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
Aurobindo Pharma had a gross margin of 60.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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.
Aurobindo Pharma Gross Margin % Related Terms
Aurobindo Pharma Gross Margin % Historical Data
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The historical data trend for Aurobindo Pharma'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.
BOM:524804 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aurobindo Pharma'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.
Aurobindo Pharma Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aurobindo Pharma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aurobindo Pharma'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.
Aurobindo Pharma (BOM:524804) has a Gross Margin % of 60.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aurobindo Pharma and its competitors. This is 12% above median its historical median of 54.27. Over the past decade, Aurobindo Pharma's Gross Margin % has ranged from 51.48 to 59.60. According to the industry distribution chart, Aurobindo Pharma ranks #304 out of 943 companies in the Drug Manufacturers industry, placing it in the top 32.2%.
Is Aurobindo Pharma's Gross Margin % too high?
Aurobindo Pharma's current Gross Margin % of 60.82% is 12% above median its 10-year median of 54.27. Over the past 10 years, this metric has ranged from a low of 51.48 to a high of 59.60. The Drug Manufacturers industry median Gross Margin % is 48.54. Aurobindo Pharma's value of 60.82% is 25.3% above this industry median. Based on the distribution chart, Aurobindo Pharma ranks #304 out of 943 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aurobindo Pharma has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aurobindo Pharma's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aurobindo Pharma ranks #304 out of 943 companies for Gross Margin %. This puts Aurobindo Pharma in the upper half of its industry. The industry median Gross Margin % is 48.54. Aurobindo Pharma's value of 60.82% is 25.3% above this benchmark. Historically, Aurobindo Pharma's own Gross Margin % has ranged from 51.48 to 59.60 over the past decade. While the company's 10-year median is 54.27 vs. the industry median of 48.54, Aurobindo Pharma 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 a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 943 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. Aurobindo Pharma's current Gross Margin % of 60.82% is 25.3% 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 Aurobindo Pharma and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aurobindo Pharma's current Gross Margin % is 60.82%, which is 12% above median its own 10-year median of 54.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aurobindo Pharma stock overvalued right now?
Based on GuruFocus' analysis, Aurobindo Pharma (BOM:524804) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,333.66, compared to a current price of ₹1,564.65 — trading 17.3% above its estimated fair value. The current Gross Margin % is 60.82%, which is 12% above median its 10-year median of 54.27 and 25.3% above the Drug Manufacturers industry median of 48.54. Aurobindo Pharma's overall GF Score™ is 88/100 with 7 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 Aurobindo Pharma (BOM:524804), the current Gross Margin % is 60.82% 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.
Is Aurobindo Pharma (BOM:524804) Overvalued in 2026?
Based on GuruFocus' analysis, Aurobindo Pharma stock appears to be overvalued.
The current stock price of ₹1,564.65 is trading 17.3% above its estimated GF Value™ of ₹1,333.66.
GuruFocus considers Aurobindo Pharma to be Modestly Overvalued.
Key valuation signals for BOM:524804:
Gross Margin %: 60.82% (12% above median its 10-year median of 54.27)
GF Value™: ₹1,333.66 vs. price of ₹1,564.65 (17.3% above fair value)
Industry Position: 25.3% above the Drug Manufacturers median (#304 of 943)
No single metric tells the full story. See the BOM:524804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aurobindo Pharma Ltd is a specialty and generic drug manufacturing company. It is principally engaged in the manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals, and related services. Its formulations target key therapeutic areas, including Central Nervous System (CNS), Antibiotics, Anti-diabetics, Cardiovascular, Anti-retroviral, Gastroenterology, Oncology, and Dermatology. The operating and reportable segments of the company are; India, the United States of America, Europe, and the Rest of the World. The company generates a majority of its revenue from its business in the United States of America.
88GF Score
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