Amara Raja Energy & MobilityNSE:ARE&M +2.38%97 Gross Margin % is 31.47% as of Mar. 2026, which is 1% below its 10-year median of 31.68. GuruFocus rates NSE:ARE&M with a GF Score™ of 97/100 and a GF Value™ of ₹1,069.91 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,997 Industrial Products companies, Amara Raja Energy & Mobility ranks better than 63.73% on this metric.
NSE:ARE&M's Gross Margin % is ranked better than 63.73% of 2997
companies
in the Industrial Products industry
Industry Median: 26.79
vs NSE:ARE&M: 32.13
Amara Raja Energy & Mobility had a gross margin of 31.47% for the quarter that ended in Mar. 2026 => Competition eroding margins
Amara Raja Energy & Mobility (NSE:ARE&M) 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
Amara Raja Energy & Mobility had a gross margin of 31.47% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Amara Raja Energy & Mobility Gross Margin % Related Terms
Amara Raja Energy & Mobility Gross Margin % Historical Data
* 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 Electrical Equipment & Parts subindustry, Amara Raja Energy & Mobility'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.
Amara Raja Energy & Mobility Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Amara Raja Energy & Mobility's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amara Raja Energy & Mobility'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.
Amara Raja Energy & Mobility (NSE:ARE&M) has a Gross Margin % of 31.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Amara Raja Energy & Mobility and its competitors. This is near median its historical median of 31.68. Over the past decade, Amara Raja Energy & Mobility's Gross Margin % has ranged from 27.80 to 33.42. According to the industry distribution chart, Amara Raja Energy & Mobility ranks #1087 out of 2997 companies in the Industrial Products industry, placing it in the top 36.3%.
Is Amara Raja Energy & Mobility's Gross Margin % too high?
Amara Raja Energy & Mobility's current Gross Margin % of 31.47% is near median its 10-year median of 31.68. Over the past 10 years, this metric has ranged from a low of 27.80 to a high of 33.42. The Industrial Products industry median Gross Margin % is 26.79. Amara Raja Energy & Mobility's value of 31.47% is 17.5% above this industry median. Based on the distribution chart, Amara Raja Energy & Mobility ranks #1087 out of 2997 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Amara Raja Energy & Mobility has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Amara Raja Energy & Mobility's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Amara Raja Energy & Mobility ranks #1087 out of 2997 companies for Gross Margin %. This puts Amara Raja Energy & Mobility in the upper half of its industry. The industry median Gross Margin % is 26.79. Amara Raja Energy & Mobility's value of 31.47% is 17.5% above this benchmark. Historically, Amara Raja Energy & Mobility's own Gross Margin % has ranged from 27.80 to 33.42 over the past decade. While the company's 10-year median is 31.68 vs. the industry median of 26.79, Amara Raja Energy & Mobility 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 2,997 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. Amara Raja Energy & Mobility's current Gross Margin % of 31.47% is 17.5% 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 Amara Raja Energy & Mobility and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amara Raja Energy & Mobility's current Gross Margin % is 31.47%, which is near median its own 10-year median of 31.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amara Raja Energy & Mobility stock overvalued right now?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility (NSE:ARE&M) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,069.91, compared to a current price of ₹841.95 — trading 21.3% below its estimated fair value. The current Gross Margin % is 31.47%, which is near median its 10-year median of 31.68 and 17.5% above the Industrial Products industry median of 26.79. Amara Raja Energy & Mobility's overall GF Score™ is 97/100 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 Amara Raja Energy & Mobility (NSE:ARE&M), the current Gross Margin % is 31.47% 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 Amara Raja Energy & Mobility (NSE:ARE&M) Overvalued in 2026?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility stock appears to be undervalued.
The current stock price of ₹841.95 is trading 21.3% below its estimated GF Value™ of ₹1,069.91.
GuruFocus considers Amara Raja Energy & Mobility to be Modestly Undervalued.
Key valuation signals for NSE:ARE&M:
Gross Margin %: 31.47% (near median its 10-year median of 31.68)
GF Value™: ₹1,069.91 vs. price of ₹841.95 (21.3% below fair value)
Industry Position: 17.5% above the Industrial Products median (#1087 of 2997)
No single metric tells the full story. See the NSE:ARE&M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amara Raja Energy & Mobility Ltd is an India-based battery maker for both industrial and automotive applications in the Indian storage battery industry. It offers Li-ion cells, battery packs, and charging solutions for Light Electric Vehicles and the telecom industry. The company's reportable segments are; Lead acid and allied products, and Others. The majority of its revenue is generated from the Lead acid and allied products segment. The others segment includes predominantly the manufacture and sale of new energy business-related products. Geographically, the derives its key revenue from India and also exports its products to various other countries.
97GF Score
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