Amara Raja Energy & MobilityNSE:ARE&M -1.78%97 Operating Margin % is 6.44% as of Mar. 2026, which is 37% below its 10-year median of 10.30. GuruFocus rates NSE:ARE&M with a GF Score™ of 97/100 and a GF Value™ of ₹1,070.05 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, Amara Raja Energy & Mobility ranks worse than 50.39% on this metric.
Amara Raja Energy & Mobility Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.9%.
The historical rank and industry rank for Amara Raja Energy & Mobility's Operating Margin % or its related term are showing as below:
NSE:ARE&M'
s Operating Margin % Range Over the Past 10 Years
Min: 6.44 Med: 10.3 Max: 12.48
Current: 6.44
NSE:ARE&M's Operating Margin % is ranked worse than 50.39% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs NSE:ARE&M: 6.44
Amara Raja Energy & Mobility (NSE:ARE&M) Operating Margin % Explanation
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.
Amara Raja Energy & Mobility Operating Margin % Related Terms
Amara Raja Energy & Mobility Operating Margin % Historical Data
* 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.
Amara Raja Energy & Mobility Operating Margin % Chart
NSE:ARE&M vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Amara Raja Energy & Mobility'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.
Amara Raja Energy & Mobility Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Amara Raja Energy & Mobility's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Amara Raja Energy & Mobility's Operating Margin % falls into.
Amara Raja Energy & Mobility Operating Margin % Calculation
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.
* 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.
Amara Raja Energy & Mobility (NSE:ARE&M) has a Operating Margin % of 6.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Amara Raja Energy & Mobility and its competitors. This is 37% below median its historical median of 10.30. Over the past decade, Amara Raja Energy & Mobility's Operating Margin % has ranged from 6.44 to 12.48. According to the industry distribution chart, Amara Raja Energy & Mobility ranks #1531 out of 3038 companies in the Industrial Products industry, placing it in the top 50.4%.
Is Amara Raja Energy & Mobility's Operating Margin % too high?
Amara Raja Energy & Mobility's current Operating Margin % of 6.44% is 37% below median its 10-year median of 10.30. Over the past 10 years, this metric has ranged from a low of 6.44 to a high of 12.48. The Industrial Products industry median Operating Margin % is 6.53. Amara Raja Energy & Mobility's value of 6.44% is 1.4% below this industry median. Based on the distribution chart, Amara Raja Energy & Mobility ranks #1531 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Amara Raja Energy & Mobility has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Amara Raja Energy & Mobility's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Amara Raja Energy & Mobility ranks #1531 out of 3038 companies for Operating Margin %. This places Amara Raja Energy & Mobility in the lower half of its industry. The industry median Operating Margin % is 6.53. Amara Raja Energy & Mobility's value of 6.44% is 1.4% below this benchmark. Historically, Amara Raja Energy & Mobility's own Operating Margin % has ranged from 6.44 to 12.48 over the past decade. While the company's 10-year median is 10.30 vs. the industry median of 6.53, Amara Raja Energy & Mobility has consistently been below 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Amara Raja Energy & Mobility's current Operating Margin % of 6.44% is 1.4% below 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 Amara Raja Energy & Mobility and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amara Raja Energy & Mobility's current Operating Margin % is 6.44%, which is 37% below median its own 10-year median of 10.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amara Raja Energy & Mobility stock overvalued right now?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility (NSE:ARE&M) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,070.05, compared to a current price of ₹834.80 — trading 22% below its estimated fair value. The current Operating Margin % is 6.44%, which is 37% below median its 10-year median of 10.30 and 1.4% below the Industrial Products industry median of 6.53. Amara Raja Energy & Mobility's overall GF Score™ is 97/100 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 Amara Raja Energy & Mobility (NSE:ARE&M), the current Operating Margin % is 6.44% 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 Amara Raja Energy & Mobility (NSE:ARE&M) Overvalued in 2026?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility stock appears to be undervalued.
The current stock price of ₹834.80 is trading 22% below its estimated GF Value™ of ₹1,070.05.
GuruFocus considers Amara Raja Energy & Mobility to be Modestly Undervalued.
Key valuation signals for NSE:ARE&M:
Operating Margin %: 6.44% (37% below median its 10-year median of 10.30)
GF Value™: ₹1,070.05 vs. price of ₹834.80 (22% below fair value)
Industry Position: 1.4% below the Industrial Products median (#1531 of 3038)
No single metric tells the full story. See the NSE:ARE&M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amara Raja Energy & Mobility Ltd is an India-based battery maker for both industrial and automotive applications in the Indian storage battery industry. It offers Li-ion cells, battery packs, and charging solutions for Light Electric Vehicles and the telecom industry. The company's reportable segments are; Lead acid and allied products, and Others. The majority of its revenue is generated from the Lead acid and allied products segment. The others segment includes predominantly the manufacture and sale of new energy business-related products. Geographically, the derives its key revenue from India and also exports its products to various other countries.
97GF Score
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