Aarti PharmalabsBOM:543748 -2.69%56 Operating Margin % is 17.50% as of Mar. 2026, which is 7% above its 10-year median of 16.38. GuruFocus rates BOM:543748 with a GF Score™ of 56/100 and a GF Value™ of ₹636.88 (Fairly Valued). The stock has 3 warning signs investors should review. Among 955 Drug Manufacturers companies, Aarti Pharmalabs ranks better than 74.24% on this metric.
The historical rank and industry rank for Aarti Pharmalabs's Operating Margin % or its related term are showing as below:
BOM:543748'
s Operating Margin % Range Over the Past 10 Years
Min: 13.86 Med: 16.38 Max: 17.85
Current: 16.38
BOM:543748's Operating Margin % is ranked better than 74.24% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs BOM:543748: 16.38
Aarti Pharmalabs's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Aarti Pharmalabs Operating Margin % Related Terms
Aarti Pharmalabs Operating Margin % Historical Data
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The historical data trend for Aarti Pharmalabs's Operating 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 Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs's Operating Margin %, along with its competitors' market caps and Operating 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 Pharmalabs Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Pharmalabs's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Aarti Pharmalabs's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 Pharmalabs (BOM:543748) has a Operating Margin % of 17.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aarti Pharmalabs and its competitors. This is near median its historical median of 16.38. Over the past decade, Aarti Pharmalabs' Operating Margin % has ranged from 13.86 to 17.85. According to the industry distribution chart, Aarti Pharmalabs ranks #246 out of 955 companies in the Drug Manufacturers industry, placing it in the top 25.8%.
Is Aarti Pharmalabs' Operating Margin % too high?
Aarti Pharmalabs' current Operating Margin % of 17.50% is near median its 10-year median of 16.38. Over the past 10 years, this metric has ranged from a low of 13.86 to a high of 17.85. The Drug Manufacturers industry median Operating Margin % is 7.45. Aarti Pharmalabs' value of 17.50% is 134.9% above this industry median. Based on the distribution chart, Aarti Pharmalabs ranks #246 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Pharmalabs has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aarti Pharmalabs' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarti Pharmalabs ranks #246 out of 955 companies for Operating Margin %. This puts Aarti Pharmalabs in the upper half of its industry. The industry median Operating Margin % is 7.45. Aarti Pharmalabs' value of 17.50% is 134.9% above this benchmark. Historically, Aarti Pharmalabs' own Operating Margin % has ranged from 13.86 to 17.85 over the past decade. While the company's 10-year median is 16.38 vs. the industry median of 7.45, Aarti Pharmalabs 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 Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarti Pharmalabs's current Operating Margin % of 17.50% is 134.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Aarti Pharmalabs and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Pharmalabs's current Operating Margin % is 17.50%, which is near median its own 10-year median of 16.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Pharmalabs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Pharmalabs (BOM:543748) is currently considered Fairly Valued. The stock's GF Value™ is ₹636.88, compared to a current price of ₹691.50 — trading 8.6% above its estimated fair value. The current Operating Margin % is 17.50%, which is near median its 10-year median of 16.38 and 134.9% above the Drug Manufacturers industry median of 7.45. Aarti Pharmalabs' overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Aarti Pharmalabs (BOM:543748), the current Operating Margin % is 17.50% 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 Pharmalabs (BOM:543748) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Pharmalabs stock appears to be overvalued.
The current stock price of ₹691.50 is trading 8.6% above its estimated GF Value™ of ₹636.88.
GuruFocus considers Aarti Pharmalabs to be Fairly Valued.
Key valuation signals for BOM:543748:
Operating Margin %: 17.50% (near median its 10-year median of 16.38)
GF Value™: ₹636.88 vs. price of ₹691.50 (8.6% above fair value)
Industry Position: 134.9% above the Drug Manufacturers median (#246 of 955)
No single metric tells the full story. See the BOM:543748 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. The company manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, acids, and xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline in India. It also offers Contract Development and Manufacturing Services (CDMS) for drug substance (NCE, RSM, Intermediates) projects. Geographically, the company generates maximum revenue from its customers located outside India.
56GF Score
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