Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Arabian PetroleumNSE:ARABIAN +4.27%66 Gross Margin % is 11.18% as of Mar. 2026, which is 20% below its 10-year median of 14.05. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 876 Oil & Gas companies, Arabian Petroleum ranks worse than 67.81% on this metric.
Arabian Petroleum (NSE:ARABIAN) 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
Arabian Petroleum had a gross margin of 11.18% for the quarter that ended in Mar. 2026 => No sustainable 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.
Arabian Petroleum Gross Margin % Related Terms
Arabian Petroleum Gross Margin % Historical Data
* Premium members only.
The historical data trend for Arabian Petroleum'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:ARABIAN vs MPC, VLO, PSX: Gross Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Arabian Petroleum'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.
Arabian Petroleum Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Petroleum'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.
Arabian Petroleum (NSE:ARABIAN) has a Gross Margin % of 11.18% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabian Petroleum and its competitors. This is 20% below median its historical median of 14.05. Over the past decade, Arabian Petroleum's Gross Margin % has ranged from 11.02 to 19.09. According to the industry distribution chart, Arabian Petroleum ranks #594 out of 876 companies in the Oil & Gas industry, placing it in the top 67.8%.
Is Arabian Petroleum's Gross Margin % too high?
Arabian Petroleum's current Gross Margin % of 11.18% is 20% below median its 10-year median of 14.05. Over the past 10 years, this metric has ranged from a low of 11.02 to a high of 19.09. The Oil & Gas industry median Gross Margin % is 26.97. Arabian Petroleum's value of 11.18% is 58.5% below this industry median. Based on the distribution chart, Arabian Petroleum ranks #594 out of 876 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Arabian Petroleum has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Petroleum's Gross Margin % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #594 out of 876 companies for Gross Margin %. This places Arabian Petroleum in the lower half of its industry. The industry median Gross Margin % is 26.97. Arabian Petroleum's value of 11.18% is 58.5% below this benchmark. Historically, Arabian Petroleum's own Gross Margin % has ranged from 11.02 to 19.09 over the past decade. While the company's 10-year median is 14.05 vs. the industry median of 26.97, Arabian Petroleum has consistently been below 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 Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 26.97, based on 876 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. Arabian Petroleum's current Gross Margin % of 11.18% is 58.5% below 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 Arabian Petroleum and its competitors. For the Oil & Gas industry, the median Gross Margin % is 26.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current Gross Margin % is 11.18%, which is 20% below median its own 10-year median of 14.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current Gross Margin % is 11.18%, which is 20% below median its 10-year median of 14.05 and 58.5% below the Oil & Gas industry median of 26.97. Arabian Petroleum's overall GF Score™ is 66/100 with 2 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 Arabian Petroleum (NSE:ARABIAN), the current Gross Margin % is 11.18% 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 Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued.
The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48.
GuruFocus considers Arabian Petroleum to be Possible Value Trap.
Key valuation signals for NSE:ARABIAN:
Gross Margin %: 11.18% (20% below median its 10-year median of 14.05)
GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
Industry Position: 58.5% below the Oil & Gas median (#594 of 876)
No single metric tells the full story. See the NSE:ARABIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score
Get the complete analysis for NSE:ARABIAN
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:ARABIAN has been successfully added to your 
