Spectrum Talent Management (NSE:SPECTSTM) Degree of Operating Leverage : 4.54 (As of Mar. 2026)

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NSE:SPECTSTM Spectrum Talent Management Ltd NSE:SPECTSTM
77 GF Score
Price ₹61.20
GF Value ₹162.61
Valuation Significantly Undervalued
! 7 Warning Signs
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What is Spectrum Talent Management Degree of Operating Leverage?

Spectrum Talent Management NSE:SPECTSTM -2.08% 77 Degree of Operating Leverage is 4.54 as of Mar. 2026. GuruFocus rates NSE:SPECTSTM with a GF Score™ of 77/100 and a GF Value™ of ₹162.61 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 1,040 Business Services companies, Spectrum Talent Management ranks worse than 75.19% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Spectrum Talent Management's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 4.54. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Spectrum Talent Management's Degree of Operating Leverage or its related term are showing as below:

NSE:SPECTSTM's Degree of Operating Leverage is ranked worse than
75.19% of 1040 companies
in the Business Services industry
Industry Median: 1.19 vs NSE:SPECTSTM: 4.54

Spectrum Talent Management  (NSE:SPECTSTM) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Spectrum Talent Management Degree of Operating Leverage Related Terms


Spectrum Talent Management Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Spectrum Talent Management's Degree of Operating Leverage 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.

Spectrum Talent Management Degree of Operating Leverage Chart

Spectrum Talent Management Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Degree of Operating Leverage
Get a 7-Day Free Trial 4.00 0.81 -1.68 -0.44 4.54

Spectrum Talent Management Semi-Annual Data
Mar20 Mar21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -1.68 -0.95 -0.44 -0.11 4.54

NSE:SPECTSTM vs KFY, RHI, TNET: Degree of Operating Leverage Comparison

For the Staffing & Employment Services subindustry, Spectrum Talent Management's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.


Spectrum Talent Management Degree of Operating Leverage vs Business Services Industry

For the Business Services industry and Industrials sector, Spectrum Talent Management's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Spectrum Talent Management's Degree of Operating Leverage falls into.


NSE:SPECTSTM
77GF Score
Spectrum Talent Management Ltd NSE:SPECTSTM
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Spectrum Talent Management Degree of Operating Leverage Calculation

Spectrum Talent Management's Degree of Operating Leverage for the quarter that ended in Mar. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 150.47 (Mar. 2026) / 91.54 (Mar. 2025) - 1 )/( 14504.19 (Mar. 2026) / 12701.35 (Mar. 2025) - 1 )
=0.6438/0.1419
=4.54***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

What does a Degree of Operating Leverage of 4.54 mean?
Spectrum Talent Management (NSE:SPECTSTM) has a Degree of Operating Leverage of 4.54 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Spectrum Talent Management and its competitors. According to the industry distribution chart, Spectrum Talent Management ranks #782 out of 1040 companies in the Business Services industry, placing it in the top 75.2%.
Is Spectrum Talent Management's Degree of Operating Leverage too high?
Spectrum Talent Management's current Degree of Operating Leverage is 4.54. The Business Services industry median Degree of Operating Leverage is 1.19. Spectrum Talent Management's value of 4.54 is 281.5% above this industry median. Based on the distribution chart, Spectrum Talent Management ranks #782 out of 1040 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Spectrum Talent Management has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spectrum Talent Management's Degree of Operating Leverage compare to KFY and RHI?
According to the Business Services industry distribution chart, Spectrum Talent Management ranks #782 out of 1040 companies for Degree of Operating Leverage. This places Spectrum Talent Management in the lower half of its industry. The industry median Degree of Operating Leverage is 1.19. Spectrum Talent Management's value of 4.54 is 281.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Business Services company?
The median Degree of Operating Leverage among Business Services companies is 1.19, based on 1,040 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spectrum Talent Management's current Degree of Operating Leverage of 4.54 is 281.5% above 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Spectrum Talent Management and its competitors. For the Business Services industry, the median Degree of Operating Leverage is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spectrum Talent Management's current Degree of Operating Leverage is 4.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spectrum Talent Management stock overvalued right now?
Based on GuruFocus' analysis, Spectrum Talent Management (NSE:SPECTSTM) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹162.61, compared to a current price of ₹61.20 — trading 62.4% below its estimated fair value. The current Degree of Operating Leverage is 4.54 and 281.5% above the Business Services industry median of 1.19. Spectrum Talent Management's overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Spectrum Talent Management (NSE:SPECTSTM), the current Degree of Operating Leverage is 4.54 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 Spectrum Talent Management (NSE:SPECTSTM) Overvalued in 2026?

Based on GuruFocus' analysis, Spectrum Talent Management stock appears to be undervalued. The current stock price of ₹61.20 is trading 62.4% below its estimated GF Value™ of ₹162.61. GuruFocus considers Spectrum Talent Management to be Significantly Undervalued.

Key valuation signals for NSE:SPECTSTM:

  • Degree of Operating Leverage: 4.54
  • GF Value™: ₹162.61 vs. price of ₹61.20 (62.4% below fair value)
  • GF Score™: 77/100 with 7 warning signs
  • Industry Position: 281.5% above the Business Services median (#782 of 1040)

No single metric tells the full story. See the NSE:SPECTSTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Spectrum Talent Management Business Description

Address Gautam Buddha Nagar, Block C, Plot no. C-142, Sector-63, Noida, UP, IND, 201301
Spectrum Talent Management Ltd is a renowned human resource and staffing service provider. The company offers a wide array of services such as staffing, recruitment, apprenticeship, Payroll, Onboarding and flexible staffing. It satisfies the firm's staffing, and recruitment needs globally through this specialized rich knowledge. The company's business segment includes Manpower supply, Recruitment and related services, and Electronic goods. The company generates the majority of its revenue from the Manpower supply, Recruitment, and related services segment.
77GF Score

Get the complete analysis for NSE:SPECTSTM

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹61.20
Price
₹162.61
GF Value