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Laurus LabsBOM:540222 +0.89%66 Operating Margin % is 25.39% as of Jun. 2026, which is 64% above its 10-year median of 15.52. GuruFocus rates BOM:540222 with a GF Score™ of 66/100 and a GF Value™ of ₹842.84 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 957 Drug Manufacturers companies, Laurus Labs ranks better than 83.28% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Laurus Labs's Operating Income for the
three
months ended in Jun. 2026 was ₹5,144 Mil. Laurus Labs's Revenue for the
three
months ended in Jun. 2026 was ₹20,263 Mil. Therefore, Laurus Labs's Operating Margin % for the quarter that ended in Jun. 2026 was 25.39%.
Warning Sign:
Laurus Labs Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -13.7%.
The historical rank and industry rank for Laurus Labs's Operating Margin % or its related term are showing as below:
BOM:540222'
s Operating Margin % Range Over the Past 10 Years
Min: 7.89 Med: 15.52 Max: 28.51
Current: 21.28
BOM:540222's Operating Margin % is ranked better than 83.28% of 957
companies
in the Drug Manufacturers industry
Industry Median: 7.96
vs BOM:540222: 21.28
Laurus Labs's 5-Year Average Operating Margin % Growth Rate was -13.70% per year.
Laurus Labs's Operating Income for the
three
months ended in Jun. 2026 was ₹5,144 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was ₹15,468 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.
Laurus Labs Operating Margin % Related Terms
Laurus Labs Operating Margin % Historical Data
* Premium members only.
The historical data trend for Laurus Labs'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, Laurus Labs'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.
Laurus Labs Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laurus Labs's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Laurus Labs'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.
Laurus Labs'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.
Laurus Labs (BOM:540222) has a Operating Margin % of 25.39% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Laurus Labs and its competitors. This is 64% above median its historical median of 15.52. Over the past decade, Laurus Labs' Operating Margin % has ranged from 7.89 to 28.51. According to the industry distribution chart, Laurus Labs ranks #160 out of 957 companies in the Drug Manufacturers industry, placing it in the top 16.7%.
Is Laurus Labs' Operating Margin % too high?
Laurus Labs' current Operating Margin % of 25.39% is 64% above median its 10-year median of 15.52. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 28.51. The Drug Manufacturers industry median Operating Margin % is 7.96. Laurus Labs' value of 25.39% is 219% above this industry median. Based on the distribution chart, Laurus Labs ranks #160 out of 957 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Laurus Labs has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurus Labs' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Laurus Labs ranks #160 out of 957 companies for Operating Margin %. This places Laurus Labs in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.96. Laurus Labs' value of 25.39% is 219% above this benchmark. Historically, Laurus Labs' own Operating Margin % has ranged from 7.89 to 28.51 over the past decade. While the company's 10-year median is 15.52 vs. the industry median of 7.96, Laurus Labs 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.96, based on 957 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. Laurus Labs's current Operating Margin % of 25.39% is 219% 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 Laurus Labs and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laurus Labs's current Operating Margin % is 25.39%, which is 64% above median its own 10-year median of 15.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurus Labs stock overvalued right now?
Based on GuruFocus' analysis, Laurus Labs (BOM:540222) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹842.84, compared to a current price of ₹1,823.00 — trading 116.3% above its estimated fair value. The current Operating Margin % is 25.39%, which is 64% above median its 10-year median of 15.52 and 219% above the Drug Manufacturers industry median of 7.96. Laurus Labs' overall GF Score™ is 66/100 with 7 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 Laurus Labs (BOM:540222), the current Operating Margin % is 25.39% 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 Laurus Labs (BOM:540222) Overvalued in 2026?
Based on GuruFocus' analysis, Laurus Labs stock appears to be overvalued.
The current stock price of ₹1,823.00 is trading 116.3% above its estimated GF Value™ of ₹842.84.
GuruFocus considers Laurus Labs to be Significantly Overvalued.
Key valuation signals for BOM:540222:
Operating Margin %: 25.39% (64% above median its 10-year median of 15.52)
GF Value™: ₹842.84 vs. price of ₹1,823.00 (116.3% above fair value)
Industry Position: 219% above the Drug Manufacturers median (#160 of 957)
No single metric tells the full story. See the BOM:540222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laurus Labs Ltd is a pharmaceutical company based in India. It provides active pharmaceutical ingredients (API) including intermediates, Generic Finished dosage forms (FDF), and Contract Research services. The entity develops APIs and intermediates for select, high-growth antiretrovirals, Hepatitis C and Oncology. It also manufactures APIs in other therapeutic areas, such as anti-asthma, ophthalmology, anti-diabetics, cardiovascular, and proton pump inhibitors, among others. The company has its business presence in India and Outside India of which it derives a majority of revenue from Outside India. The company generates revenue from the sale of API, Intermediates and Formulations, Contract research services, and others.
66GF Score
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