Aarti DrugsNSE:AARTIDRUGS +0.07%73 Operating Margin % is 10.80% as of Mar. 2026, which is 6% below its 10-year median of 11.52. 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 955 Drug Manufacturers companies, Aarti Drugs ranks better than 54.24% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Aarti Drugs's Operating Income for the
three
months ended in Mar. 2026 was ₹778 Mil. Aarti Drugs's Revenue for the
three
months ended in Mar. 2026 was ₹7,203 Mil. Therefore, Aarti Drugs's Operating Margin % for the quarter that ended in Mar. 2026 was 10.80%.
Warning Sign:
Aarti Drugs Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.4%.
The historical rank and industry rank for Aarti Drugs's Operating Margin % or its related term are showing as below:
NSE:AARTIDRUGS'
s Operating Margin % Range Over the Past 10 Years
Min: 9.44 Med: 11.52 Max: 18.37
Current: 9.44
NSE:AARTIDRUGS's Operating Margin % is ranked better than 54.24% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs NSE:AARTIDRUGS: 9.44
Aarti Drugs's 5-Year Average Operating Margin % Growth Rate was -10.40% per year.
Aarti Drugs's Operating Income for the
three
months ended in Mar. 2026 was ₹778 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹2,422 Mil.
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 Drugs Operating Margin % Related Terms
Aarti Drugs Operating Margin % Historical Data
* Premium members only.
The historical data trend for Aarti Drugs'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.
NSE:AARTIDRUGS vs ZTS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Drugs'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 Drugs Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Drugs's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Drugs'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 Drugs'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 Drugs (NSE:AARTIDRUGS) has a Operating Margin % of 10.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aarti Drugs and its competitors. This is near median its historical median of 11.52. Over the past decade, Aarti Drugs' Operating Margin % has ranged from 9.44 to 18.37. According to the industry distribution chart, Aarti Drugs ranks #437 out of 955 companies in the Drug Manufacturers industry, placing it in the top 45.8%.
Is Aarti Drugs' Operating Margin % too high?
Aarti Drugs' current Operating Margin % of 10.80% is near median its 10-year median of 11.52. Over the past 10 years, this metric has ranged from a low of 9.44 to a high of 18.37. The Drug Manufacturers industry median Operating Margin % is 7.45. Aarti Drugs' value of 10.80% is 45% above this industry median. Based on the distribution chart, Aarti Drugs ranks #437 out of 955 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' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarti Drugs ranks #437 out of 955 companies for Operating Margin %. This puts Aarti Drugs in the upper half of its industry. The industry median Operating Margin % is 7.45. Aarti Drugs' value of 10.80% is 45% above this benchmark. Historically, Aarti Drugs' own Operating Margin % has ranged from 9.44 to 18.37 over the past decade. While the company's 10-year median is 11.52 vs. the industry median of 7.45, 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 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 Drugs's current Operating Margin % of 10.80% is 45% 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 Drugs 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 Drugs's current Operating Margin % is 10.80%, which is near median its own 10-year median of 11.52. 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 ₹372.70 — trading 25% below its estimated fair value. The current Operating Margin % is 10.80%, which is near median its 10-year median of 11.52 and 45% above the Drug Manufacturers industry median of 7.45. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Aarti Drugs (NSE:AARTIDRUGS), the current Operating Margin % is 10.80% 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 Aarti Drugs (NSE:AARTIDRUGS) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Drugs stock appears to be undervalued.
The current stock price of ₹372.70 is trading 25% below its estimated GF Value™ of ₹497.01.
GuruFocus considers Aarti Drugs to be Modestly Undervalued.
Key valuation signals for NSE:AARTIDRUGS:
Operating Margin %: 10.80% (near median its 10-year median of 11.52)
GF Value™: ₹497.01 vs. price of ₹372.70 (25% below fair value)
Industry Position: 45% above the Drug Manufacturers median (#437 of 955)
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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