Xchanging SolutionsBOM:532616 -1.34%71 Operating Margin % is 37.17% as of Mar. 2026, which is 32% above its 10-year median of 28.15. GuruFocus rates BOM:532616 with a GF Score™ of 71/100 and a GF Value™ of ₹110.89 (Significantly Undervalued). Among 2,816 Software companies, Xchanging Solutions ranks better than 96.31% on this metric.
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.
Xchanging Solutions Operating Margin % Related Terms
Xchanging Solutions Operating Margin % Historical Data
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The historical data trend for Xchanging Solutions'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:532616 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Xchanging Solutions'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.
Xchanging Solutions Operating Margin % vs Software Industry
For the Software industry and Technology sector, Xchanging Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Xchanging Solutions'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.
Xchanging Solutions'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.
Xchanging Solutions (BOM:532616) has a Operating Margin % of 37.17% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Xchanging Solutions and its competitors. This is 32% above median its historical median of 28.15. Over the past decade, Xchanging Solutions' Operating Margin % has ranged from 17.44 to 33.76. According to the industry distribution chart, Xchanging Solutions ranks #104 out of 2816 companies in the Software industry, placing it in the top 3.7%.
Is Xchanging Solutions' Operating Margin % too high?
Xchanging Solutions' current Operating Margin % of 37.17% is 32% above median its 10-year median of 28.15. Over the past 10 years, this metric has ranged from a low of 17.44 to a high of 33.76. The Software industry median Operating Margin % is 3.80. Xchanging Solutions' value of 37.17% is 879.4% above this industry median. Based on the distribution chart, Xchanging Solutions ranks #104 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Xchanging Solutions has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xchanging Solutions' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Xchanging Solutions ranks #104 out of 2816 companies for Operating Margin %. This places Xchanging Solutions in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Xchanging Solutions' value of 37.17% is 879.4% above this benchmark. Historically, Xchanging Solutions' own Operating Margin % has ranged from 17.44 to 33.76 over the past decade. While the company's 10-year median is 28.15 vs. the industry median of 3.80, Xchanging Solutions 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 Software company?
The median Operating Margin % among Software companies is 3.80, based on 2,816 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. Xchanging Solutions's current Operating Margin % of 37.17% is 879.4% 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 Xchanging Solutions and its competitors. For the Software industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xchanging Solutions's current Operating Margin % is 37.17%, which is 32% above median its own 10-year median of 28.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xchanging Solutions stock overvalued right now?
Based on GuruFocus' analysis, Xchanging Solutions (BOM:532616) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹110.89, compared to a current price of ₹62.49 — trading 43.6% below its estimated fair value. The current Operating Margin % is 37.17%, which is 32% above median its 10-year median of 28.15 and 879.4% above the Software industry median of 3.80. Xchanging Solutions' overall GF Score™ is 71/100. 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 Xchanging Solutions (BOM:532616), the current Operating Margin % is 37.17% 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 Xchanging Solutions (BOM:532616) Overvalued in 2026?
Based on GuruFocus' analysis, Xchanging Solutions stock appears to be undervalued.
The current stock price of ₹62.49 is trading 43.6% below its estimated GF Value™ of ₹110.89.
GuruFocus considers Xchanging Solutions to be Significantly Undervalued.
Key valuation signals for BOM:532616:
Operating Margin %: 37.17% (32% above median its 10-year median of 28.15)
GF Value™: ₹110.89 vs. price of ₹62.49 (43.6% below fair value)
Industry Position: 879.4% above the Software median (#104 of 2816)
No single metric tells the full story. See the BOM:532616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xchanging Solutions Ltd is an Information Technology company. The company serves Healthcare, Life Sciences, Insurance, Travel, Transportation and Hospitality, Banking and Capital Markets, Aerospace and Defense, Energy, Utilities, Oil and Gas, and others. Its services include Analytics, Application Services, Business Process Services, Cloud and Platform Services, Consulting, Enterprise and Cloud Apps, Internet of Things (IoT), Security, and others. Geographically, it derives a majority of its revenue from the USA and also has a presence in Europe, India, Singapore, and the Rest of the World.
71GF Score
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