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Arihant Institute (BOM:541401) Gross Margin % Explanation
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
Arihant Institute had a gross margin of 86.35% 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.
Arihant Institute Gross Margin % Related Terms
Arihant Institute Gross Margin % Historical Data
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The historical data trend for Arihant Institute'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.
For the Education & Training Services subindustry, Arihant Institute'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.
Arihant Institute Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Arihant Institute's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arihant Institute'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.
Arihant Institute (BOM:541401) has a Gross Margin % of 86.35% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arihant Institute and its competitors. This is 39% above median its historical median of 62.21. Over the past decade, Arihant Institute's Gross Margin % has ranged from 19.81 to 89.78.
Is Arihant Institute's Gross Margin % too high?
Arihant Institute's current Gross Margin % of 86.35% is 39% above median its 10-year median of 62.21. Over the past 10 years, this metric has ranged from a low of 19.81 to a high of 89.78. The Education industry median Gross Margin % is 48.11. Arihant Institute's value of 86.35% is 79.5% above this industry median. Overall, Arihant Institute has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does Arihant Institute's Gross Margin % compare to PBYA?
Arihant Institute's Gross Margin % of 86.35% can be compared against companies in the Education industry. The industry median Gross Margin % is 48.11. Arihant Institute's value of 86.35% is 79.5% above this benchmark. Historically, Arihant Institute's own Gross Margin % has ranged from 19.81 to 89.78 over the past decade. While the company's 10-year median is 62.21 vs. the industry median of 48.11, Arihant Institute 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 an Education company?
The median Gross Margin % among Education companies is 48.11, based on 244 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. Arihant Institute's current Gross Margin % of 86.35% is 79.5% 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 Arihant Institute and its competitors. For the Education industry, the median Gross Margin % is 48.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arihant Institute's current Gross Margin % is 86.35%, which is 39% above median its own 10-year median of 62.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arihant Institute stock overvalued right now?
Arihant Institute (BOM:541401) has a current Gross Margin % of 86.35%. The stock's GF Value™ is ₹0.10, compared to a current price of ₹1.56 — trading 1460% above its estimated fair value. The current Gross Margin % is 86.35%, which is 39% above median its 10-year median of 62.21 and 79.5% above the Education industry median of 48.11. Arihant Institute's overall GF Score™ is 47/100 with 6 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 Arihant Institute (BOM:541401), the current Gross Margin % is 86.35% 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 Arihant Institute (BOM:541401) Overvalued in 2026?
Based on GuruFocus' analysis, Arihant Institute stock appears to be overvalued.
The current stock price of ₹1.56 is trading 1460% above its estimated GF Value™ of ₹0.10.
Key valuation signals for BOM:541401:
Gross Margin %: 86.35% (39% above median its 10-year median of 62.21)
GF Value™: ₹0.10 vs. price of ₹1.56 (1460% above fair value)
Industry Position: 79.5% above the Education median
No single metric tells the full story. See the BOM:541401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arihant Institute Ltd is engaged in providing coaching and educational guidance for students appearing for professional courses such as Company Secretary, Chartered Accountant, and CMA, among others. It provides coaching and guidance from entry-level test exams to the final exam and covers all the subjects in depth with the test series. The company operates the educational program and coaching under the brand name Arihant Institute. It generates its revenue in the form of income from Education, E-learning, E-library, Online study materials, and others.
47GF Score
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