Aarti DrugsNSE:AARTIDRUGS +0.20%73 Net Margin % is 7.66% as of Mar. 2026, which is 10% above its 10-year median of 6.94. GuruFocus rates NSE:AARTIDRUGS with a GF Score™ of 73/100 and a GF Value™ of ₹497.01 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 953 Drug Manufacturers companies, Aarti Drugs ranks better than 56.45% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Aarti Drugs's Net Income for the
three
months ended in Mar. 2026 was ₹552 Mil. Aarti Drugs's Revenue for the
three
months ended in Mar. 2026 was ₹7,203 Mil. Therefore, Aarti Drugs's net margin for the quarter that ended in Mar. 2026 was 7.66%.
The historical rank and industry rank for Aarti Drugs's Net Margin % or its related term are showing as below:
NSE:AARTIDRUGS'
s Net Margin % Range Over the Past 10 Years
Min: 5.75 Med: 6.94 Max: 13.01
Current: 7.6
NSE:AARTIDRUGS's Net Margin % is ranked better than 56.45% of 953
companies
in the Drug Manufacturers industry
Industry Median: 5.69
vs NSE:AARTIDRUGS: 7.60
Aarti Drugs (NSE:AARTIDRUGS) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Aarti Drugs Net Margin % Related Terms
Aarti Drugs Net Margin % Historical Data
* Premium members only.
The historical data trend for Aarti Drugs's Net 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:AARTIDRUGS vs ZTS, UTHR: Net Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Drugs's Net Margin %, along with its competitors' market caps and Net 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 Drugs Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Drugs's Net Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Drugs's Net 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.
Aarti Drugs (NSE:AARTIDRUGS) has a Net Margin % of 7.66% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Aarti Drugs and its competitors. This is 10% above median its historical median of 6.94. Over the past decade, Aarti Drugs' Net Margin % has ranged from 5.75 to 13.01. According to the industry distribution chart, Aarti Drugs ranks #415 out of 953 companies in the Drug Manufacturers industry, placing it in the top 43.5%.
Is Aarti Drugs' Net Margin % too high?
Aarti Drugs' current Net Margin % of 7.66% is 10% above median its 10-year median of 6.94. Over the past 10 years, this metric has ranged from a low of 5.75 to a high of 13.01. The Drug Manufacturers industry median Net Margin % is 5.69. Aarti Drugs' value of 7.66% is 34.6% above this industry median. Based on the distribution chart, Aarti Drugs ranks #415 out of 953 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Drugs has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Drugs' Net Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aarti Drugs ranks #415 out of 953 companies for Net Margin %. This puts Aarti Drugs in the upper half of its industry. The industry median Net Margin % is 5.69. Aarti Drugs' value of 7.66% is 34.6% above this benchmark. Historically, Aarti Drugs' own Net Margin % has ranged from 5.75 to 13.01 over the past decade. While the company's 10-year median is 6.94 vs. the industry median of 5.69, Aarti Drugs 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.69, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarti Drugs's current Net Margin % of 7.66% is 34.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Aarti Drugs and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Drugs's current Net Margin % is 7.66%, which is 10% above median its own 10-year median of 6.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Drugs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Drugs (NSE:AARTIDRUGS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹497.01, compared to a current price of ₹373.45 — trading 24.9% below its estimated fair value. The current Net Margin % is 7.66%, which is 10% above median its 10-year median of 6.94 and 34.6% above the Drug Manufacturers industry median of 5.69. Aarti Drugs' overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Aarti Drugs (NSE:AARTIDRUGS), the current Net Margin % is 7.66% 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 Drugs (NSE:AARTIDRUGS) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Drugs stock appears to be undervalued.
The current stock price of ₹373.45 is trading 24.9% below its estimated GF Value™ of ₹497.01.
GuruFocus considers Aarti Drugs to be Modestly Undervalued.
Key valuation signals for NSE:AARTIDRUGS:
Net Margin %: 7.66% (10% above median its 10-year median of 6.94)
GF Value™: ₹497.01 vs. price of ₹373.45 (24.9% below fair value)
Industry Position: 34.6% above the Drug Manufacturers median (#415 of 953)
No single metric tells the full story. See the NSE:AARTIDRUGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Drugs Ltd is a pharmaceutical company. It offers active pharmaceutical ingredients (APIs), pharma intermediaries, specialty chemicals, and formulations in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antibiotic, antidiabetic, and vitamins among others. The product offerings of the company comprise Aceclofenac, Celecoxib, Moxifloxacin, and others. The firm caters to both domestic and international markets and derives a majority of its revenue from its business in India.
73GF Score
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