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Patel Chem SpecialitiesBOM:544460 +1.59%18 Operating Margin % is 10.63% as of Mar. 2026, which is 10% below its 10-year median of 11.75. GuruFocus rates BOM:544460 with a GF Score™ of 18/100. The stock has 2 warning signs investors should review. Among 1,579 Chemicals companies, Patel Chem Specialities ranks better than 72.07% 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.
Patel Chem Specialities Operating Margin % Related Terms
Patel Chem Specialities Operating Margin % Historical Data
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The historical data trend for Patel Chem Specialities'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 Chemicals subindustry, Patel Chem Specialities'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.
Patel Chem Specialities Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Patel Chem Specialities's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Patel Chem Specialities'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.
Patel Chem Specialities'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.
Patel Chem Specialities (BOM:544460) has a Operating Margin % of 10.63% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Patel Chem Specialities and its competitors. This is 10% below median its historical median of 11.75. Over the past decade, Patel Chem Specialities' Operating Margin % has ranged from 6.68 to 13.85. According to the industry distribution chart, Patel Chem Specialities ranks #441 out of 1579 companies in the Chemicals industry, placing it in the top 27.9%.
Is Patel Chem Specialities' Operating Margin % too high?
Patel Chem Specialities' current Operating Margin % of 10.63% is 10% below median its 10-year median of 11.75. Over the past 10 years, this metric has ranged from a low of 6.68 to a high of 13.85. The Chemicals industry median Operating Margin % is 6.15. Patel Chem Specialities' value of 10.63% is 72.8% above this industry median. Based on the distribution chart, Patel Chem Specialities ranks #441 out of 1579 companies in the Chemicals industry, which is above the industry midpoint. Overall, Patel Chem Specialities has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Patel Chem Specialities' Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Patel Chem Specialities ranks #441 out of 1579 companies for Operating Margin %. This puts Patel Chem Specialities in the upper half of its industry. The industry median Operating Margin % is 6.15. Patel Chem Specialities' value of 10.63% is 72.8% above this benchmark. Historically, Patel Chem Specialities' own Operating Margin % has ranged from 6.68 to 13.85 over the past decade. While the company's 10-year median is 11.75 vs. the industry median of 6.15, Patel Chem Specialities 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.15, based on 1,579 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. Patel Chem Specialities's current Operating Margin % of 10.63% is 72.8% 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 Patel Chem Specialities and its competitors. For the Chemicals industry, the median Operating Margin % is 6.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Patel Chem Specialities's current Operating Margin % is 10.63%, which is 10% below median its own 10-year median of 11.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Patel Chem Specialities stock overvalued right now?
Patel Chem Specialities (BOM:544460) has a current Operating Margin % of 10.63%. The current Operating Margin % is 10.63%, which is 10% below median its 10-year median of 11.75 and 72.8% above the Chemicals industry median of 6.15. Patel Chem Specialities' overall GF Score™ is 18/100 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 Patel Chem Specialities (BOM:544460), the current Operating Margin % is 10.63% 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.
Patel Chem Specialities Ltd operates in the field of specialty chemicals, particularly focusing on the production of cellulose-based excipients. It manufactures a diverse products that are critical to various industries, including pharmaceuticals, food & beverages, cosmetics, and numerous industrial applications. These chemicals are fundamental in the formulation of essential products such as tablets, food additives, personal care items, and industrial formulations. Its products play vital roles as binders, disintegrants, thickeners, stabilizers, and gelling agents, each serving a specialized function across multiple sectors.
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