Aarti IndustriesNSE:AARTIIND -0.11%86 Operating Margin % is 9.80% as of Mar. 2026, which is 39% below its 10-year median of 16.15. GuruFocus rates NSE:AARTIIND with a GF Score™ of 86/100 and a GF Value™ of ₹588.29 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,585 Chemicals companies, Aarti Industries ranks better than 60.38% on this metric.
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 Industries Operating Margin % Related Terms
Aarti Industries Operating Margin % Historical Data
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The historical data trend for Aarti Industries'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:AARTIIND vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Aarti Industries'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 Industries Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Aarti Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Industries'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 Industries'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 Industries (NSE:AARTIIND) has a Operating Margin % of 9.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aarti Industries and its competitors. This is 39% below median its historical median of 16.15. Over the past decade, Aarti Industries' Operating Margin % has ranged from 7.79 to 28.63. According to the industry distribution chart, Aarti Industries ranks #628 out of 1585 companies in the Chemicals industry, placing it in the top 39.6%.
Is Aarti Industries' Operating Margin % too high?
Aarti Industries' current Operating Margin % of 9.80% is 39% below median its 10-year median of 16.15. Over the past 10 years, this metric has ranged from a low of 7.79 to a high of 28.63. The Chemicals industry median Operating Margin % is 6.02. Aarti Industries' value of 9.80% is 62.8% above this industry median. Based on the distribution chart, Aarti Industries ranks #628 out of 1585 companies in the Chemicals industry, which is above the industry midpoint. Overall, Aarti Industries has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Industries' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Aarti Industries ranks #628 out of 1585 companies for Operating Margin %. This puts Aarti Industries in the upper half of its industry. The industry median Operating Margin % is 6.02. Aarti Industries' value of 9.80% is 62.8% above this benchmark. Historically, Aarti Industries' own Operating Margin % has ranged from 7.79 to 28.63 over the past decade. While the company's 10-year median is 16.15 vs. the industry median of 6.02, Aarti Industries 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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 Industries's current Operating Margin % of 9.80% is 62.8% 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 Industries and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Industries's current Operating Margin % is 9.80%, which is 39% below median its own 10-year median of 16.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Industries stock overvalued right now?
Based on GuruFocus' analysis, Aarti Industries (NSE:AARTIIND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹588.29, compared to a current price of ₹466.05 — trading 20.8% below its estimated fair value. The current Operating Margin % is 9.80%, which is 39% below median its 10-year median of 16.15 and 62.8% above the Chemicals industry median of 6.02. Aarti Industries' overall GF Score™ is 86/100 with 7 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 Industries (NSE:AARTIIND), the current Operating Margin % is 9.80% 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 Industries (NSE:AARTIIND) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Industries stock appears to be undervalued.
The current stock price of ₹466.05 is trading 20.8% below its estimated GF Value™ of ₹588.29.
GuruFocus considers Aarti Industries to be Modestly Undervalued.
Key valuation signals for NSE:AARTIIND:
Operating Margin %: 9.80% (39% below median its 10-year median of 16.15)
GF Value™: ₹588.29 vs. price of ₹466.05 (20.8% below fair value)
Industry Position: 62.8% above the Chemicals median (#628 of 1585)
No single metric tells the full story. See the NSE:AARTIIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Industries Ltd manufactures and sells chemicals and chemical-based products. It sells benzene-based chemicals, which are used in agricultural products, dyes and pigments, and flavors and fragrances. The company provides applications for industries spanning agrochemicals, pharmaceuticals, polymers and additives, fertilizers, dyes and pigments, home and personal care (FMCG), energy, and more. The company generates maximum revenue by exporting its products to other countries and the rest through its domestic operations.
86GF Score
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