ARC FinanceBOM:540135 +1.89%45 Operating Margin % is 10.96% as of Mar. 2026, which is 180% above its 10-year median of 3.91. GuruFocus rates BOM:540135 with a GF Score™ of 45/100. The stock has 2 warning signs investors should review. Among 410 Credit Services companies, ARC Finance ranks worse than 70% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. ARC Finance's Operating Income for the
three
months ended in Mar. 2026 was ₹6.2 Mil. ARC Finance's Revenue for the
three
months ended in Mar. 2026 was ₹56.4 Mil. Therefore, ARC Finance's Operating Margin % for the quarter that ended in Mar. 2026 was 10.96%.
The historical rank and industry rank for ARC Finance's Operating Margin % or its related term are showing as below:
BOM:540135'
s Operating Margin % Range Over the Past 10 Years
Min: 3.48 Med: 3.91 Max: 23.28
Current: 3.48
BOM:540135's Operating Margin % is ranked worse than 70% of 410
companies
in the Credit Services industry
Industry Median: 17.47
vs BOM:540135: 3.48
ARC Finance's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
ARC Finance's Operating Income for the
three
months ended in Mar. 2026 was ₹6.2 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹9.8 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.
ARC Finance Operating Margin % Related Terms
ARC Finance Operating Margin % Historical Data
* Premium members only.
The historical data trend for ARC Finance'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:540135 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, ARC Finance'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.
ARC Finance Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, ARC Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ARC Finance'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.
ARC Finance'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.
ARC Finance (BOM:540135) has a Operating Margin % of 10.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ARC Finance and its competitors. This is 180% above median its historical median of 3.91. Over the past decade, ARC Finance's Operating Margin % has ranged from 3.48 to 23.28. According to the industry distribution chart, ARC Finance ranks #287 out of 410 companies in the Credit Services industry, placing it in the top 70%.
Is ARC Finance's Operating Margin % too high?
ARC Finance's current Operating Margin % of 10.96% is 180% above median its 10-year median of 3.91. Over the past 10 years, this metric has ranged from a low of 3.48 to a high of 23.28. The Credit Services industry median Operating Margin % is 17.47. ARC Finance's value of 10.96% is 37.3% below this industry median. Based on the distribution chart, ARC Finance ranks #287 out of 410 companies in the Credit Services industry, which is below the industry midpoint. Overall, ARC Finance has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does ARC Finance's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, ARC Finance ranks #287 out of 410 companies for Operating Margin %. This places ARC Finance in the lower half of its industry. The industry median Operating Margin % is 17.47. ARC Finance's value of 10.96% is 37.3% below this benchmark. Historically, ARC Finance's own Operating Margin % has ranged from 3.48 to 23.28 over the past decade. While the company's 10-year median is 3.91 vs. the industry median of 17.47, ARC Finance 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.47, based on 410 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. ARC Finance's current Operating Margin % of 10.96% is 37.3% 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 ARC Finance and its competitors. For the Credit Services industry, the median Operating Margin % is 17.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARC Finance's current Operating Margin % is 10.96%, which is 180% above median its own 10-year median of 3.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARC Finance stock overvalued right now?
ARC Finance (BOM:540135) has a current Operating Margin % of 10.96%. The current Operating Margin % is 10.96%, which is 180% above median its 10-year median of 3.91 and 37.3% below the Credit Services industry median of 17.47. ARC Finance's overall GF Score™ is 45/100 with 2 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 ARC Finance (BOM:540135), the current Operating Margin % is 10.96% 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.
ARC Finance Ltd is a non-banking financial institution engaged in the business of lending. It is engaged in trading in shares, financial services investment activities, and providing secure and Unsecured loans. The company operates as a non-deposit-taking company. The company also accepts loan advances and offers different financial services to its customers. The company generates revenue from Interest Income as well as from sales of shares.
45GF Score
Get the complete analysis for BOM:540135
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:540135 has been successfully added to your 
