Growth-Stage Metrics · Intermediate · Pro filter
Operating leverage: what it means and how to read it
Sales growth ÷ cost growth. Above 1 means sales are growing faster than costs.
What is Operating leverage?
Sales growth ÷ cost growth. Above 1 means sales are growing faster than costs.
A worked example
Sales up 30% with costs up 20% gives 1.5. Each new rupee of sales is costing less to earn, so losses narrow as the company grows.
Why does Operating leverage matter?
When sales outrun costs, profits grow even faster.
How do you read Operating leverage?
Above 1 is the good side.
Higher is usually better.
What is a typical Operating leverage in India today?
The median across the 1930 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 49 companies0.63
Mid Cap · 79 companies0.63
Small Cap · 1802 companies0.47
By industry
Median, largest industries first
Pharmaceuticals · 800.26
Computers - Software & Consulting · 370.38
Auto Components & Equipments · 750.62
Cement & Cement Products · 230.75
Civil Construction · 720.72
Aerospace & Defense · 150.37
Heavy Electrical Equipment · 190.47
Residential Commercial Projects · 490.98
Gems Jewellery And Watches · 320.17
Hospital · 240.87
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.