MRFNSE:MRF +1.26%92 Gross Margin % is 38.78% as of Mar. 2026, which is 4% above its 10-year median of 37.19. GuruFocus rates NSE:MRF with a GF Score™ of 92/100 and a GF Value™ of ₹159,593.44 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,311 Vehicles & Parts companies, MRF ranks better than 82.53% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. MRF's Gross Profit for the
three
months ended in Mar. 2026 was ₹31,199 Mil. MRF's Revenue for the
three
months ended in Mar. 2026 was ₹80,442 Mil. Therefore, MRF's Gross Margin % for the quarter that ended in Mar. 2026 was 38.78%.
The historical rank and industry rank for MRF's Gross Margin % or its related term are showing as below:
NSE:MRF'
s Gross Margin % Range Over the Past 10 Years
Min: 30.6 Med: 37.19 Max: 41.58
Current: 37.32
During the past 13 years, the highestGross Margin % of MRF was 41.58%. The lowest was 30.60%. And the median was 37.19%.
NSE:MRF's Gross Margin % is ranked better than 82.53% of 1311
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs NSE:MRF: 37.32
MRF had a gross margin of 38.78% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for MRF was 0.60% per year.
MRF (NSE:MRF) 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
MRF had a gross margin of 38.78% 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.
MRF Gross Margin % Related Terms
MRF Gross Margin % Historical Data
* Premium members only.
The historical data trend for MRF'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 Auto Parts subindustry, MRF'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.
MRF Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, MRF's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MRF'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.
MRF (NSE:MRF) has a Gross Margin % of 38.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MRF and its competitors. This is near median its historical median of 37.19. Over the past decade, MRF's Gross Margin % has ranged from 30.60 to 41.58. According to the industry distribution chart, MRF ranks #229 out of 1311 companies in the Vehicles & Parts industry, placing it in the top 17.5%.
Is MRF's Gross Margin % too high?
MRF's current Gross Margin % of 38.78% is near median its 10-year median of 37.19. Over the past 10 years, this metric has ranged from a low of 30.60 to a high of 41.58. The Vehicles & Parts industry median Gross Margin % is 19.84. MRF's value of 38.78% is 95.5% above this industry median. Based on the distribution chart, MRF ranks #229 out of 1311 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, MRF has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MRF's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, MRF ranks #229 out of 1311 companies for Gross Margin %. This places MRF in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. MRF's value of 38.78% is 95.5% above this benchmark. Historically, MRF's own Gross Margin % has ranged from 30.60 to 41.58 over the past decade. While the company's 10-year median is 37.19 vs. the industry median of 19.84, MRF 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,311 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. MRF's current Gross Margin % of 38.78% is 95.5% 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 MRF and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MRF's current Gross Margin % is 38.78%, which is near median its own 10-year median of 37.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MRF stock overvalued right now?
Based on GuruFocus' analysis, MRF (NSE:MRF) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹159,593.44, compared to a current price of ₹129,430.00 — trading 18.9% below its estimated fair value. The current Gross Margin % is 38.78%, which is near median its 10-year median of 37.19 and 95.5% above the Vehicles & Parts industry median of 19.84. MRF's overall GF Score™ is 92/100 with 1 warning sign 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 MRF (NSE:MRF), the current Gross Margin % is 38.78% 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 MRF (NSE:MRF) Overvalued in 2026?
Based on GuruFocus' analysis, MRF stock appears to be undervalued.
The current stock price of ₹129,430.00 is trading 18.9% below its estimated GF Value™ of ₹159,593.44.
GuruFocus considers MRF to be Modestly Undervalued.
Key valuation signals for NSE:MRF:
Gross Margin %: 38.78% (near median its 10-year median of 37.19)
GF Value™: ₹159,593.44 vs. price of ₹129,430.00 (18.9% below fair value)
Industry Position: 95.5% above the Vehicles & Parts median (#229 of 1311)
No single metric tells the full story. See the NSE:MRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MRF Ltd makes and sells rubber products, including tires, tubes, tread rubber, conveyor belts, and building and floor coatings. The firm's tires are used for automobiles, commercial trucks, and farm equipment. The company sells tires under the MRF brand name. MRF also operates multiple retail stores that sell tires and offer services. Stores under the MRF TireRok brand offer wheel alignment and air conditioning repair. MRF Musclezone stores offer tire servicing for commercial vehicles. MRF Tyredom stores offer a wheel alignment and car washes. The majority of revenue comes from India.
92GF Score
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