Profitability · Beginner
Operating margin: what it means and how to read it
Operating profit ÷ sales: what's left from each ₹100 of sales after running costs and depreciation.
What is Operating margin?
Operating profit ÷ sales: what's left from each ₹100 of sales after running costs and depreciation.
A worked example
₹100 of sales and ₹82 of costs → 18% operating margin.
Why does Operating margin matter?
The clearest picture of how profitable day-to-day operations are.
How do you read Operating margin?
Higher is better within a sector. Watch the trend.
Higher is usually better.
What is a typical Operating margin in India today?
The median across the 3389 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 71 companies18.0%
Mid Cap · 117 companies17.4%
Small Cap · 3201 companies8.5%
By industry
Median, largest industries first
Pharmaceuticals · 17512.7%
Computers - Software & Consulting · 4916.1%
Power Generation · 2731.6%
Heavy Electrical Equipment · 3517.3%
Auto Components & Equipments · 1019.9%
Cement & Cement Products · 317.5%
Civil Construction · 9512.1%
Aerospace & Defense · 2720.7%
Iron & Steel · 139.5%
Residential Commercial Projects · 9018.5%
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 Operating 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.
Operating margin
As of 12 Oct 2026
Reliance Industries12.7%
Bharti Airtel31.5%
Larsen & Toubro12.4%
Hindustan Unilever26.4%
Infosys22.1%