Eicher MotorsBOM:505200 +0.34%93 Operating Margin % is 21.51% as of Mar. 2026, which is 0% above its 10-year median of 21.50. GuruFocus rates BOM:505200 with a GF Score™ of 93/100 and a GF Value™ of ₹6,979.26 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,324 Vehicles & Parts companies, Eicher Motors ranks better than 96.22% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Eicher Motors's Operating Income for the
three
months ended in Mar. 2026 was ₹12,820 Mil. Eicher Motors's Revenue for the
three
months ended in Mar. 2026 was ₹59,609 Mil. Therefore, Eicher Motors's Operating Margin % for the quarter that ended in Mar. 2026 was 21.51%.
Good Sign:
Eicher Motors Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Eicher Motors's Operating Margin % or its related term are showing as below:
BOM:505200'
s Operating Margin % Range Over the Past 10 Years
Min: 15.48 Med: 21.5 Max: 29
Current: 21.52
BOM:505200's Operating Margin % is ranked better than 96.22% of 1324
companies
in the Vehicles & Parts industry
Industry Median: 4.865
vs BOM:505200: 21.52
Eicher Motors's 5-Year Average Operating Margin % Growth Rate was 7.30% per year.
Eicher Motors's Operating Income for the
three
months ended in Mar. 2026 was ₹12,820 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹49,447 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Eicher Motors Operating Margin % Related Terms
Eicher Motors Operating Margin % Historical Data
* Premium members only.
The historical data trend for Eicher Motors's Operating 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.
BOM:505200 vs TSLA, GM, F: Operating Margin % Comparison
For the Auto Manufacturers subindustry, Eicher Motors's Operating Margin %, along with its competitors' market caps and Operating 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.
Eicher Motors Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Eicher Motors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eicher Motors's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Eicher Motors's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Eicher Motors (BOM:505200) has a Operating Margin % of 21.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eicher Motors and its competitors. This is near median its historical median of 21.50. Over the past decade, Eicher Motors' Operating Margin % has ranged from 15.48 to 29.00. According to the industry distribution chart, Eicher Motors ranks #50 out of 1324 companies in the Vehicles & Parts industry, placing it in the top 3.8%.
Is Eicher Motors' Operating Margin % too high?
Eicher Motors' current Operating Margin % of 21.51% is near median its 10-year median of 21.50. Over the past 10 years, this metric has ranged from a low of 15.48 to a high of 29.00. The Vehicles & Parts industry median Operating Margin % is 4.87. Eicher Motors' value of 21.51% is 342.1% above this industry median. Based on the distribution chart, Eicher Motors ranks #50 out of 1324 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Eicher Motors has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eicher Motors' Operating Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Eicher Motors ranks #50 out of 1324 companies for Operating Margin %. This places Eicher Motors in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.87. Eicher Motors' value of 21.51% is 342.1% above this benchmark. Historically, Eicher Motors' own Operating Margin % has ranged from 15.48 to 29.00 over the past decade. While the company's 10-year median is 21.50 vs. the industry median of 4.87, Eicher Motors has consistently been above 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 Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.87, based on 1,324 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eicher Motors's current Operating Margin % of 21.51% is 342.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Eicher Motors and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eicher Motors's current Operating Margin % is 21.51%, which is near median its own 10-year median of 21.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eicher Motors stock overvalued right now?
Based on GuruFocus' analysis, Eicher Motors (BOM:505200) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,979.26, compared to a current price of ₹7,597.90 — trading 8.9% above its estimated fair value. The current Operating Margin % is 21.51%, which is near median its 10-year median of 21.50 and 342.1% above the Vehicles & Parts industry median of 4.87. Eicher Motors' overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Eicher Motors (BOM:505200), the current Operating Margin % is 21.51% 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 Eicher Motors (BOM:505200) Overvalued in 2026?
Based on GuruFocus' analysis, Eicher Motors stock appears to be overvalued.
The current stock price of ₹7,597.90 is trading 8.9% above its estimated GF Value™ of ₹6,979.26.
GuruFocus considers Eicher Motors to be Fairly Valued.
Key valuation signals for BOM:505200:
Operating Margin %: 21.51% (near median its 10-year median of 21.50)
GF Value™: ₹6,979.26 vs. price of ₹7,597.90 (8.9% above fair value)
Industry Position: 342.1% above the Vehicles & Parts median (#50 of 1324)
No single metric tells the full story. See the BOM:505200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eicher Motors Ltd is an Indian automobile manufacturer and is also engaged in the retail of related components and accessories. The company manufactures two-wheeler motorcycles and commercial vehicles. The Motorcycles division, which derives its key revenue, produces motorcycles through the Royal Enfield brand. The Commercial Vehicles division, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of its revenue within India and also has a presence in overseas markets.
93GF Score
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