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.
Sylph Industries Operating Margin % Related Terms
Sylph Industries Operating Margin % Historical Data
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The historical data trend for Sylph Industries'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:511447 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Sylph Industries'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.
Sylph Industries Operating Margin % vs Software Industry
For the Software industry and Technology sector, Sylph Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sylph Industries'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.
Sylph Industries'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.
Sylph Industries (BOM:511447) has a Operating Margin % of 1.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sylph Industries and its competitors. According to the industry distribution chart, Sylph Industries ranks #1249 out of 2820 companies in the Software industry, placing it in the top 44.3%.
Is Sylph Industries' Operating Margin % too high?
Sylph Industries' current Operating Margin % is 1.27%. The Software industry median Operating Margin % is 3.87. Sylph Industries' value of 1.27% is 67.1% below this industry median. Based on the distribution chart, Sylph Industries ranks #1249 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Sylph Industries has a GF Score™ of 47/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sylph Industries' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Sylph Industries ranks #1249 out of 2820 companies for Operating Margin %. This puts Sylph Industries in the upper half of its industry. The industry median Operating Margin % is 3.87. Sylph Industries' value of 1.27% is 67.1% below this benchmark. 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 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. Sylph Industries's current Operating Margin % of 1.27% is 67.1% below 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 Sylph Industries and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sylph Industries's current Operating Margin % is 1.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sylph Industries stock overvalued right now?
Based on GuruFocus' analysis, Sylph Industries (BOM:511447) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹3.28, compared to a current price of ₹0.26 — trading 92.1% below its estimated fair value. The current Operating Margin % is 1.27% and 67.1% below the Software industry median of 3.87. Sylph Industries' overall GF Score™ is 47/100 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 Sylph Industries (BOM:511447), the current Operating Margin % is 1.27% 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 Sylph Industries (BOM:511447) Overvalued in 2026?
Based on GuruFocus' analysis, Sylph Industries stock appears to be undervalued.
The current stock price of ₹0.26 is trading 92.1% below its estimated GF Value™ of ₹3.28.
GuruFocus considers Sylph Industries to be Significantly Undervalued.
Key valuation signals for BOM:511447:
Operating Margin %: 1.27%
GF Value™: ₹3.28 vs. price of ₹0.26 (92.1% below fair value)
Industry Position: 67.1% below the Software median (#1249 of 2820)
No single metric tells the full story. See the BOM:511447 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sylph Industries Ltd, formerly Sylph Technologies Ltd is an India-based company. The company is engaged in providing offshore outsourcing, software development outsourcing, custom application development, outsourced product development, e-commerce, and wireless and mobile solutions. The company's operating segment is information technology, education, printing and publishing newspapers, and trading of solar power plants. The firm is also engaged in providing BPO and & KPO Services and providing services in the field of Accounting, Income tax, Service Tax, VAT, CST, GST, Custom Duty and other duties and taxes, Auditing, Corporate Services, Company law matters, Financial & Legal Consultancy and Tax Management.
47GF Score
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