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Mercury LaboratoriesBOM:538964 +4.57%76 Operating Margin % is 2.90% as of Jun. 2026, which is 64% below its 10-year median of 8.02. GuruFocus rates BOM:538964 with a GF Score™ of 76/100 and a GF Value™ of ₹832.71 (Fairly Valued). The stock has 5 warning signs investors should review. Among 961 Drug Manufacturers companies, Mercury Laboratories ranks worse than 54.42% on this metric.
Mercury Laboratories Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.9%.
The historical rank and industry rank for Mercury Laboratories's Operating Margin % or its related term are showing as below:
BOM:538964'
s Operating Margin % Range Over the Past 10 Years
Min: 5.51 Med: 8.02 Max: 13.44
Current: 6.2
BOM:538964's Operating Margin % is ranked worse than 54.42% of 961
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs BOM:538964: 6.20
Mercury Laboratories's 5-Year Average Operating Margin % Growth Rate was -10.90% per year.
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.
Mercury Laboratories Operating Margin % Related Terms
Mercury Laboratories Operating Margin % Historical Data
* Premium members only.
The historical data trend for Mercury Laboratories'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Mercury Laboratories'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.
Mercury Laboratories Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Mercury Laboratories's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mercury Laboratories'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.
Mercury Laboratories'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.
Mercury Laboratories (BOM:538964) has a Operating Margin % of 2.90% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mercury Laboratories and its competitors. This is 64% below median its historical median of 8.02. Over the past decade, Mercury Laboratories' Operating Margin % has ranged from 5.51 to 13.44. According to the industry distribution chart, Mercury Laboratories ranks #523 out of 961 companies in the Drug Manufacturers industry, placing it in the top 54.4%.
Is Mercury Laboratories' Operating Margin % too high?
Mercury Laboratories' current Operating Margin % of 2.90% is 64% below median its 10-year median of 8.02. Over the past 10 years, this metric has ranged from a low of 5.51 to a high of 13.44. The Drug Manufacturers industry median Operating Margin % is 7.45. Mercury Laboratories' value of 2.90% is 61.1% below this industry median. Based on the distribution chart, Mercury Laboratories ranks #523 out of 961 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Mercury Laboratories has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mercury Laboratories' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Mercury Laboratories ranks #523 out of 961 companies for Operating Margin %. This places Mercury Laboratories in the lower half of its industry. The industry median Operating Margin % is 7.45. Mercury Laboratories' value of 2.90% is 61.1% below this benchmark. Historically, Mercury Laboratories' own Operating Margin % has ranged from 5.51 to 13.44 over the past decade. While the company's 10-year median is 8.02 vs. the industry median of 7.45, Mercury Laboratories has consistently been below 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 961 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. Mercury Laboratories's current Operating Margin % of 2.90% is 61.1% 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 Mercury Laboratories and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercury Laboratories's current Operating Margin % is 2.90%, which is 64% below median its own 10-year median of 8.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercury Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Mercury Laboratories (BOM:538964) is currently considered Fairly Valued. The stock's GF Value™ is ₹832.71, compared to a current price of ₹812.50 — trading 2.4% below its estimated fair value. The current Operating Margin % is 2.90%, which is 64% below median its 10-year median of 8.02 and 61.1% below the Drug Manufacturers industry median of 7.45. Mercury Laboratories' overall GF Score™ is 76/100 with 5 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 Mercury Laboratories (BOM:538964), the current Operating Margin % is 2.90% as of Jun. 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 Mercury Laboratories (BOM:538964) Overvalued in 2026?
Based on GuruFocus' analysis, Mercury Laboratories stock appears to be undervalued.
The current stock price of ₹812.50 is trading 2.4% below its estimated GF Value™ of ₹832.71.
GuruFocus considers Mercury Laboratories to be Fairly Valued.
Key valuation signals for BOM:538964:
Operating Margin %: 2.90% (64% below median its 10-year median of 8.02)
GF Value™: ₹832.71 vs. price of ₹812.50 (2.4% below fair value)
Industry Position: 61.1% below the Drug Manufacturers median (#523 of 961)
No single metric tells the full story. See the BOM:538964 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercury Laboratories Ltd is an India-based pharmaceutical company. It is engaged in the manufacturing and distribution of pharmaceutical drugs, herbs, and laboratory and surgical materials. The group produces medicines and formulations in the segments of pediatrics, obstetrics, gynecology, surgeon segment, multivitamin and nutrition supplements, antibiotics, and others. The company sells its products in India and Internationally, of which key revenue is derived from sales made in India.
76GF Score
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