Profitability · Beginner
Net margin: what it means and how to read it
Net profit ÷ sales: what finally reaches shareholders from each ₹100 of sales, after everything including interest and tax.
What is Net margin?
Net profit ÷ sales: what finally reaches shareholders from each ₹100 of sales, after everything including interest and tax.
A worked example
₹10 profit on ₹100 of sales → 10% net margin.
Why does Net margin matter?
The bottom line, in percentage terms.
How do you read Net margin?
Higher is better. One-off gains can inflate it for a year.
Higher is usually better.
What is a typical Net margin in India today?
The median across the 4314 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 100 companies13.6%
Mid Cap · 151 companies11.8%
Small Cap · 4063 companies4.9%
By industry
Median, largest industries first
Private Sector Bank · 2013.6%
Pharmaceuticals · 1827.3%
Computers - Software & Consulting · 5310.9%
Public Sector Bank · 1212.8%
Non Banking Financial Company (NBFC) · 7117.8%
Power Generation · 2712.3%
Heavy Electrical Equipment · 3510.8%
Auto Components & Equipments · 1016.2%
Cement & Cement Products · 314.9%
Civil Construction · 956.4%
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.
What is Net margin for India's largest companies today?
The latest figure for the largest companies with a page here. Each links to what the rest of that company's numbers mean.
Net margin
As of 12 Oct 2026
Bharti Airtel12.9%
HDFC Bank15.9%
ICICI Bank17.6%
State Bank of India11.7%
Bajaj Finance23.6%
Larsen & Toubro5.6%