Aarti IndustriesNSE:AARTIIND +1.17%86 Gross Margin % is 40.09% as of Mar. 2026, which is 25% above its 10-year median of 32.06. GuruFocus rates NSE:AARTIIND with a GF Score™ of 86/100 and a GF Value™ of ₹589.95 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,560 Chemicals companies, Aarti Industries ranks better than 76.09% on this metric.
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
Aarti Industries had a gross margin of 40.09% 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.
Aarti Industries Gross Margin % Related Terms
Aarti Industries Gross Margin % Historical Data
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The historical data trend for Aarti Industries'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.
NSE:AARTIIND vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Aarti Industries'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.
Aarti Industries Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Aarti Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Industries'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.
Aarti Industries (NSE:AARTIIND) has a Gross Margin % of 40.09% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aarti Industries and its competitors. This is 25% above median its historical median of 32.06. Over the past decade, Aarti Industries' Gross Margin % has ranged from 24.78 to 35.96. According to the industry distribution chart, Aarti Industries ranks #373 out of 1560 companies in the Chemicals industry, placing it in the top 23.9%.
Is Aarti Industries' Gross Margin % too high?
Aarti Industries' current Gross Margin % of 40.09% is 25% above median its 10-year median of 32.06. Over the past 10 years, this metric has ranged from a low of 24.78 to a high of 35.96. The Chemicals industry median Gross Margin % is 23.36. Aarti Industries' value of 40.09% is 71.6% above this industry median. Based on the distribution chart, Aarti Industries ranks #373 out of 1560 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Aarti Industries has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Industries' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Aarti Industries ranks #373 out of 1560 companies for Gross Margin %. This places Aarti Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.36. Aarti Industries' value of 40.09% is 71.6% above this benchmark. Historically, Aarti Industries' own Gross Margin % has ranged from 24.78 to 35.96 over the past decade. While the company's 10-year median is 32.06 vs. the industry median of 23.36, Aarti Industries 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. Aarti Industries's current Gross Margin % of 40.09% is 71.6% 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 Aarti Industries and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Industries's current Gross Margin % is 40.09%, which is 25% above median its own 10-year median of 32.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Industries stock overvalued right now?
Based on GuruFocus' analysis, Aarti Industries (NSE:AARTIIND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹589.95, compared to a current price of ₹487.70 — trading 17.3% below its estimated fair value. The current Gross Margin % is 40.09%, which is 25% above median its 10-year median of 32.06 and 71.6% above the Chemicals industry median of 23.36. Aarti Industries' overall GF Score™ is 86/100 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 Aarti Industries (NSE:AARTIIND), the current Gross Margin % is 40.09% 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 Aarti Industries (NSE:AARTIIND) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Industries stock appears to be undervalued.
The current stock price of ₹487.70 is trading 17.3% below its estimated GF Value™ of ₹589.95.
GuruFocus considers Aarti Industries to be Modestly Undervalued.
Key valuation signals for NSE:AARTIIND:
Gross Margin %: 40.09% (25% above median its 10-year median of 32.06)
GF Value™: ₹589.95 vs. price of ₹487.70 (17.3% below fair value)
Industry Position: 71.6% above the Chemicals median (#373 of 1560)
No single metric tells the full story. See the NSE:AARTIIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Industries Ltd manufactures and sells chemicals and chemical-based products. It sells benzene-based chemicals, which are used in agricultural products, dyes and pigments, and flavors and fragrances. The company provides applications for industries spanning agrochemicals, pharmaceuticals, polymers and additives, fertilizers, dyes and pigments, home and personal care (FMCG), energy, and more. The company generates maximum revenue by exporting its products to other countries and the rest through its domestic operations.
86GF Score
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