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Arabian PetroleumNSE:ARABIAN +4.27%66 Pretax Margin % is 3.11% as of Mar. 2026, which is 12% below its 10-year median of 3.53. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 924 Oil & Gas companies, Arabian Petroleum ranks worse than 58.12% on this metric.
Arabian Petroleum (NSE:ARABIAN) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Arabian Petroleum Pretax Margin % Related Terms
Arabian Petroleum Pretax Margin % Historical Data
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The historical data trend for Arabian Petroleum's Pretax 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:ARABIAN vs MPC, VLO, PSX: Pretax Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Arabian Petroleum's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Arabian Petroleum Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Petroleum's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Arabian Petroleum's Pretax 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.
Arabian Petroleum (NSE:ARABIAN) has a Pretax Margin % of 3.11% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arabian Petroleum and its competitors. This is 12% below median its historical median of 3.53. Over the past decade, Arabian Petroleum's Pretax Margin % has ranged from 2.30 to 4.49. According to the industry distribution chart, Arabian Petroleum ranks #537 out of 924 companies in the Oil & Gas industry, placing it in the top 58.1%.
Is Arabian Petroleum's Pretax Margin % too high?
Arabian Petroleum's current Pretax Margin % of 3.11% is 12% below median its 10-year median of 3.53. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 4.49. The Oil & Gas industry median Pretax Margin % is 6.36. Arabian Petroleum's value of 3.11% is 51.1% below this industry median. Based on the distribution chart, Arabian Petroleum ranks #537 out of 924 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Arabian Petroleum has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Petroleum's Pretax Margin % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #537 out of 924 companies for Pretax Margin %. This places Arabian Petroleum in the lower half of its industry. The industry median Pretax Margin % is 6.36. Arabian Petroleum's value of 3.11% is 51.1% below this benchmark. Historically, Arabian Petroleum's own Pretax Margin % has ranged from 2.30 to 4.49 over the past decade. While the company's 10-year median is 3.53 vs. the industry median of 6.36, Arabian Petroleum 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 Pretax Margin % for an Oil & Gas company?
The median Pretax Margin % among Oil & Gas companies is 6.36, based on 924 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arabian Petroleum's current Pretax Margin % of 3.11% is 51.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arabian Petroleum and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current Pretax Margin % is 3.11%, which is 12% below median its own 10-year median of 3.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current Pretax Margin % is 3.11%, which is 12% below median its 10-year median of 3.53 and 51.1% below the Oil & Gas industry median of 6.36. Arabian Petroleum's overall GF Score™ is 66/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Arabian Petroleum (NSE:ARABIAN), the current Pretax Margin % is 3.11% 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 Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued.
The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48.
GuruFocus considers Arabian Petroleum to be Possible Value Trap.
Key valuation signals for NSE:ARABIAN:
Pretax Margin %: 3.11% (12% below median its 10-year median of 3.53)
GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
Industry Position: 51.1% below the Oil & Gas median (#537 of 924)
No single metric tells the full story. See the NSE:ARABIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score
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