Eros International Media (BOM:533261) Operating Margin % Explanation
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.
Eros International Media Operating Margin % Related Terms
Eros International Media Operating Margin % Historical Data
* 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:533261 vs NFLX, DIS, LYV: Operating Margin % Comparison
For the Entertainment subindustry, Eros International Media'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.
Eros International Media Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Eros International Media's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eros International Media's Operating Margin % falls into.
Eros International Media Operating Margin % Calculation
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.
Eros International Media'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.
What does a Operating Margin % of -1,594.55% mean?
Eros International Media (BOM:533261) has a Operating Margin % of -1,594.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eros International Media and its competitors.
Is Eros International Media's Operating Margin % too high?
Eros International Media's current Operating Margin % is -1,594.55%. Overall, Eros International Media has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Eros International Media's Operating Margin % compare to NFLX and DIS?
Eros International Media's Operating Margin % of -1,594.55% can be compared against companies in the Media - Diversified industry. The industry median Operating Margin % is 2.51. 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. 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 Eros International Media and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eros International Media's current Operating Margin % is -1,594.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eros International Media stock overvalued right now?
Eros International Media (BOM:533261) has a current Operating Margin % of -1,594.55%. The stock's GF Value™ is ₹7.18, compared to a current price of ₹7.89 — trading 9.9% above its estimated fair value. The current Operating Margin % is -1,594.55%. Eros International Media's overall GF Score™ is 9/100 with 6 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 Eros International Media (BOM:533261), the current Operating Margin % is -1,594.55% 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 Eros International Media (BOM:533261) Overvalued in 2026?
Based on GuruFocus' analysis, Eros International Media stock appears to be overvalued.
The current stock price of ₹7.89 is trading 9.9% above its estimated GF Value™ of ₹7.18.
Key valuation signals for BOM:533261:
Operating Margin %: -1,594.55%
GF Value™: ₹7.18 vs. price of ₹7.89 (9.9% above fair value)
No single metric tells the full story. See the BOM:533261 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eros International Media Ltd is engaged in the Media and Entertainment Industry. It operates the production, exploitation, and distribution of films in India and internationally. The company distributes film content through various distribution channels which include theatrical, television syndication, and digital and ancillary. Eros licensing deals with television networks in India, such as Star, Sony, Zee, and Colors and it produces and distributes films in languages, including Hindi, Tamil, Telugu, Marathi, Malayalam, Punjabi, and Bengali. The Company has identified three geographic markets: India, UAE and the Rest of the world. The Revenue from operations is derived from the Sale/distribution/exhibition of films and other rights.
9GF Score
Get the complete analysis for BOM:533261
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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