Aarti PharmalabsNSE:AARTIPHARM -2.73%56 Gross Margin % is 51.42% as of Mar. 2026, which is 33% above its 10-year median of 38.69. GuruFocus rates NSE:AARTIPHARM with a GF Score™ of 56/100 and a GF Value™ of ₹636.14 (Fairly Valued). The stock has 3 warning signs investors should review. Among 935 Drug Manufacturers companies, Aarti Pharmalabs ranks better than 59.36% on this metric.
The historical rank and industry rank for Aarti Pharmalabs's Gross Margin % or its related term are showing as below:
NSE:AARTIPHARM'
s Gross Margin % Range Over the Past 10 Years
Min: 26.2 Med: 38.69 Max: 54.12
Current: 54.12
During the past 6 years, the highestGross Margin % of Aarti Pharmalabs was 54.12%. The lowest was 26.20%. And the median was 38.69%.
NSE:AARTIPHARM's Gross Margin % is ranked better than 59.36% of 935
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs NSE:AARTIPHARM: 54.12
Aarti Pharmalabs had a gross margin of 51.42% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aarti Pharmalabs was 0.00% 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
Aarti Pharmalabs had a gross margin of 51.42% 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 Pharmalabs Gross Margin % Related Terms
Aarti Pharmalabs Gross Margin % Historical Data
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The historical data trend for Aarti Pharmalabs'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:AARTIPHARM vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs'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 Pharmalabs Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Pharmalabs'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 Pharmalabs (NSE:AARTIPHARM) has a Gross Margin % of 51.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aarti Pharmalabs and its competitors. This is 33% above median its historical median of 38.69. Over the past decade, Aarti Pharmalabs' Gross Margin % has ranged from 26.20 to 54.12. According to the industry distribution chart, Aarti Pharmalabs ranks #380 out of 935 companies in the Drug Manufacturers industry, placing it in the top 40.6%.
Is Aarti Pharmalabs' Gross Margin % too high?
Aarti Pharmalabs' current Gross Margin % of 51.42% is 33% above median its 10-year median of 38.69. Over the past 10 years, this metric has ranged from a low of 26.20 to a high of 54.12. The Drug Manufacturers industry median Gross Margin % is 48.54. Aarti Pharmalabs' value of 51.42% is 5.9% above this industry median. Based on the distribution chart, Aarti Pharmalabs ranks #380 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Pharmalabs has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aarti Pharmalabs' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aarti Pharmalabs ranks #380 out of 935 companies for Gross Margin %. This puts Aarti Pharmalabs in the upper half of its industry. The industry median Gross Margin % is 48.54. Aarti Pharmalabs' value of 51.42% is 5.9% above this benchmark. Historically, Aarti Pharmalabs' own Gross Margin % has ranged from 26.20 to 54.12 over the past decade. While the company's 10-year median is 38.69 vs. the industry median of 48.54, Aarti Pharmalabs 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 935 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 Pharmalabs's current Gross Margin % of 51.42% is 5.9% 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 Pharmalabs 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. Aarti Pharmalabs's current Gross Margin % is 51.42%, which is 33% above median its own 10-year median of 38.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Pharmalabs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Pharmalabs (NSE:AARTIPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹636.14, compared to a current price of ₹690.70 — trading 8.6% above its estimated fair value. The current Gross Margin % is 51.42%, which is 33% above median its 10-year median of 38.69 and 5.9% above the Drug Manufacturers industry median of 48.54. Aarti Pharmalabs' overall GF Score™ is 56/100 with 3 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 Pharmalabs (NSE:AARTIPHARM), the current Gross Margin % is 51.42% 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 Pharmalabs (NSE:AARTIPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Pharmalabs stock appears to be overvalued.
The current stock price of ₹690.70 is trading 8.6% above its estimated GF Value™ of ₹636.14.
GuruFocus considers Aarti Pharmalabs to be Fairly Valued.
Key valuation signals for NSE:AARTIPHARM:
Gross Margin %: 51.42% (33% above median its 10-year median of 38.69)
GF Value™: ₹636.14 vs. price of ₹690.70 (8.6% above fair value)
Industry Position: 5.9% above the Drug Manufacturers median (#380 of 935)
No single metric tells the full story. See the NSE:AARTIPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. The company manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, acids, and xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline in India. It also offers Contract Development and Manufacturing Services (CDMS) for drug substance (NCE, RSM, Intermediates) projects. Geographically, the company generates maximum revenue from its customers located outside India.
56GF Score
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