Adani PowerNSE:ADANIPOWER -0.21%68 Operating Margin % is 25.21% as of Mar. 2026, which is 27% above its 10-year median of 19.84. GuruFocus rates NSE:ADANIPOWER with a GF Score™ of 68/100 and a GF Value™ of ₹132.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Adani Power ranks better than 75.3% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Adani Power's Operating Income for the
three
months ended in Mar. 2026 was ₹35,852 Mil. Adani Power's Revenue for the
three
months ended in Mar. 2026 was ₹142,231 Mil. Therefore, Adani Power's Operating Margin % for the quarter that ended in Mar. 2026 was 25.21%.
Good Sign:
Adani Power Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Adani Power's Operating Margin % or its related term are showing as below:
NSE:ADANIPOWER'
s Operating Margin % Range Over the Past 10 Years
Min: 12.39 Med: 19.84 Max: 31.33
Current: 28.1
NSE:ADANIPOWER's Operating Margin % is ranked better than 75.3% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.38
vs NSE:ADANIPOWER: 28.10
Adani Power's 5-Year Average Operating Margin % Growth Rate was 7.20% per year.
Adani Power's Operating Income for the
three
months ended in Mar. 2026 was ₹35,852 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹152,416 Mil.
Adani Power (NSE:ADANIPOWER) 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.
Adani Power Operating Margin % Related Terms
Adani Power Operating Margin % Historical Data
* Premium members only.
The historical data trend for Adani Power'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.
NSE:ADANIPOWER vs CEG, VST, NRG: Operating Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Adani Power'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.
Adani Power Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Adani Power's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Adani Power'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.
Adani Power'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.
Adani Power (NSE:ADANIPOWER) has a Operating Margin % of 25.21% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Adani Power and its competitors. This is 27% above median its historical median of 19.84. Over the past decade, Adani Power's Operating Margin % has ranged from 12.39 to 31.33. According to the industry distribution chart, Adani Power ranks #103 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 24.7%.
Is Adani Power's Operating Margin % too high?
Adani Power's current Operating Margin % of 25.21% is 27% above median its 10-year median of 19.84. Over the past 10 years, this metric has ranged from a low of 12.39 to a high of 31.33. The Utilities - Independent Power Producers industry median Operating Margin % is 13.38. Adani Power's value of 25.21% is 88.4% above this industry median. Based on the distribution chart, Adani Power ranks #103 out of 417 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Adani Power has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adani Power's Operating Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Adani Power ranks #103 out of 417 companies for Operating Margin %. This places Adani Power in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.38. Adani Power's value of 25.21% is 88.4% above this benchmark. Historically, Adani Power's own Operating Margin % has ranged from 12.39 to 31.33 over the past decade. While the company's 10-year median is 19.84 vs. the industry median of 13.38, Adani Power 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.38, based on 417 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. Adani Power's current Operating Margin % of 25.21% is 88.4% 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 Adani Power and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adani Power's current Operating Margin % is 25.21%, which is 27% above median its own 10-year median of 19.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adani Power stock overvalued right now?
Based on GuruFocus' analysis, Adani Power (NSE:ADANIPOWER) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹132.71, compared to a current price of ₹229.27 — trading 72.8% above its estimated fair value. The current Operating Margin % is 25.21%, which is 27% above median its 10-year median of 19.84 and 88.4% above the Utilities - Independent Power Producers industry median of 13.38. Adani Power's overall GF Score™ is 68/100 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 Adani Power (NSE:ADANIPOWER), the current Operating Margin % is 25.21% 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 Adani Power (NSE:ADANIPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Adani Power stock appears to be overvalued.
The current stock price of ₹229.27 is trading 72.8% above its estimated GF Value™ of ₹132.71.
GuruFocus considers Adani Power to be Significantly Overvalued.
Key valuation signals for NSE:ADANIPOWER:
Operating Margin %: 25.21% (27% above median its 10-year median of 19.84)
GF Value™: ₹132.71 vs. price of ₹229.27 (72.8% above fair value)
Industry Position: 88.4% above the Utilities - Independent Power Producers median (#103 of 417)
No single metric tells the full story. See the NSE:ADANIPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adani Power Ltd sells power under long term / medium term / short term Power Purchase Agreement (PPAs), Supplemental Power Purchase Agreement (SPPAs), on merchant basis and also engaged in trading, investment and other business activities incidental and ancillary to power generation and sales. Its business activities revolve around development and operations of power generation plants including related activities and trading, investment and other activities as two segments. The company generates majority of revenue from Power Generation and related activities. It has presence Within India, and Outside India (Bangladesh). The company generates majority of revenue from India.
68GF Score
Get the complete analysis for NSE:ADANIPOWER
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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