Varroc EngineeringNSE:VARROC +1.71%80 Gross Margin % is 35.80% as of Mar. 2026, which is 6% above its 10-year median of 33.68. GuruFocus rates NSE:VARROC with a GF Score™ of 80/100 and a GF Value™ of ₹638.83 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,310 Vehicles & Parts companies, Varroc Engineering ranks better than 81.22% on this metric.
The historical rank and industry rank for Varroc Engineering's Gross Margin % or its related term are showing as below:
NSE:VARROC'
s Gross Margin % Range Over the Past 10 Years
Min: 30.62 Med: 33.68 Max: 36.12
Current: 35.87
During the past 12 years, the highestGross Margin % of Varroc Engineering was 36.12%. The lowest was 30.62%. And the median was 33.68%.
NSE:VARROC's Gross Margin % is ranked better than 81.22% of 1310
companies
in the Vehicles & Parts industry
Industry Median: 19.835
vs NSE:VARROC: 35.87
Varroc Engineering had a gross margin of 35.80% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Varroc Engineering was 2.80% 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
Varroc Engineering had a gross margin of 35.80% 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.
Varroc Engineering Gross Margin % Related Terms
Varroc Engineering Gross Margin % Historical Data
* Premium members only.
The historical data trend for Varroc Engineering'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:VARROC vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Varroc Engineering'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.
Varroc Engineering Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Varroc Engineering's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Varroc Engineering'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.
Varroc Engineering (NSE:VARROC) has a Gross Margin % of 35.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Varroc Engineering and its competitors. This is near median its historical median of 33.68. Over the past decade, Varroc Engineering's Gross Margin % has ranged from 30.62 to 36.12. According to the industry distribution chart, Varroc Engineering ranks #246 out of 1310 companies in the Vehicles & Parts industry, placing it in the top 18.8%.
Is Varroc Engineering's Gross Margin % too high?
Varroc Engineering's current Gross Margin % of 35.80% is near median its 10-year median of 33.68. Over the past 10 years, this metric has ranged from a low of 30.62 to a high of 36.12. The Vehicles & Parts industry median Gross Margin % is 19.84. Varroc Engineering's value of 35.80% is 80.5% above this industry median. Based on the distribution chart, Varroc Engineering ranks #246 out of 1310 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Varroc Engineering has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Varroc Engineering's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Varroc Engineering ranks #246 out of 1310 companies for Gross Margin %. This places Varroc Engineering in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. Varroc Engineering's value of 35.80% is 80.5% above this benchmark. Historically, Varroc Engineering's own Gross Margin % has ranged from 30.62 to 36.12 over the past decade. While the company's 10-year median is 33.68 vs. the industry median of 19.84, Varroc Engineering 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 1,310 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. Varroc Engineering's current Gross Margin % of 35.80% is 80.5% 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 Varroc Engineering 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. Varroc Engineering's current Gross Margin % is 35.80%, which is near median its own 10-year median of 33.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varroc Engineering stock overvalued right now?
Based on GuruFocus' analysis, Varroc Engineering (NSE:VARROC) is currently considered Fairly Valued. The stock's GF Value™ is ₹638.83, compared to a current price of ₹667.55 — trading 4.5% above its estimated fair value. The current Gross Margin % is 35.80%, which is near median its 10-year median of 33.68 and 80.5% above the Vehicles & Parts industry median of 19.84. Varroc Engineering's overall GF Score™ is 80/100 with 5 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 Varroc Engineering (NSE:VARROC), the current Gross Margin % is 35.80% 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 Varroc Engineering (NSE:VARROC) Overvalued in 2026?
Based on GuruFocus' analysis, Varroc Engineering stock appears to be overvalued.
The current stock price of ₹667.55 is trading 4.5% above its estimated GF Value™ of ₹638.83.
GuruFocus considers Varroc Engineering to be Fairly Valued.
Key valuation signals for NSE:VARROC:
Gross Margin %: 35.80% (near median its 10-year median of 33.68)
GF Value™: ₹638.83 vs. price of ₹667.55 (4.5% above fair value)
Industry Position: 80.5% above the Vehicles & Parts median (#246 of 1310)
No single metric tells the full story. See the NSE:VARROC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varroc Engineering Ltd is an India based company engaged in manufacturing and supplying components and subassemblies for automobile, consumer durable, and white goods industries. The company's operating segment includes Automotive and Others. It generates maximum revenue from the Automotive segment. The company also designs, manufactures, and supply exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to a passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle. Geographically, it derives a majority of revenue from India and also has a presence in the Asia Pacific; North America, Europe and Other Countries.
80GF Score
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