Ashok LeylandNSE:ASHOKLEY +2.28%86 Operating Margin % is 18.68% as of Mar. 2026, which is 32% above its 10-year median of 14.16. GuruFocus rates NSE:ASHOKLEY with a GF Score™ of 86/100 and a GF Value™ of ₹129.40 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 209 Farm & Heavy Construction Machinery companies, Ashok Leyland ranks better than 97.13% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ashok Leyland's Operating Income for the
three
months ended in Mar. 2026 was ₹32,008 Mil. Ashok Leyland's Revenue for the
three
months ended in Mar. 2026 was ₹171,389 Mil. Therefore, Ashok Leyland's Operating Margin % for the quarter that ended in Mar. 2026 was 18.68%.
Good Sign:
Ashok Leyland Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Ashok Leyland's Operating Margin % or its related term are showing as below:
NSE:ASHOKLEY'
s Operating Margin % Range Over the Past 10 Years
Min: 10.14 Med: 14.16 Max: 19.33
Current: 19.33
NSE:ASHOKLEY's Operating Margin % is ranked better than 97.13% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs NSE:ASHOKLEY: 19.33
Ashok Leyland's 5-Year Average Operating Margin % Growth Rate was 13.30% per year.
Ashok Leyland's Operating Income for the
three
months ended in Mar. 2026 was ₹32,008 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹108,417 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.
Ashok Leyland Operating Margin % Related Terms
Ashok Leyland Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ashok Leyland'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:ASHOKLEY vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Ashok Leyland'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.
Ashok Leyland Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ashok Leyland'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.
Ashok Leyland'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.
Ashok Leyland (NSE:ASHOKLEY) has a Operating Margin % of 18.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ashok Leyland and its competitors. This is 32% above median its historical median of 14.16. Over the past decade, Ashok Leyland's Operating Margin % has ranged from 10.14 to 19.33. According to the industry distribution chart, Ashok Leyland ranks #6 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 2.9%.
Is Ashok Leyland's Operating Margin % too high?
Ashok Leyland's current Operating Margin % of 18.68% is 32% above median its 10-year median of 14.16. Over the past 10 years, this metric has ranged from a low of 10.14 to a high of 19.33. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Ashok Leyland's value of 18.68% is 175.5% above this industry median. Based on the distribution chart, Ashok Leyland ranks #6 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Ashok Leyland has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ashok Leyland ranks #6 out of 209 companies for Operating Margin %. This places Ashok Leyland in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.78. Ashok Leyland's value of 18.68% is 175.5% above this benchmark. Historically, Ashok Leyland's own Operating Margin % has ranged from 10.14 to 19.33 over the past decade. While the company's 10-year median is 14.16 vs. the industry median of 6.78, Ashok Leyland 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Ashok Leyland's current Operating Margin % of 18.68% is 175.5% 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 Ashok Leyland and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ashok Leyland's current Operating Margin % is 18.68%, which is 32% above median its own 10-year median of 14.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ashok Leyland stock overvalued right now?
Based on GuruFocus' analysis, Ashok Leyland (NSE:ASHOKLEY) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹129.40, compared to a current price of ₹154.91 — trading 19.7% above its estimated fair value. The current Operating Margin % is 18.68%, which is 32% above median its 10-year median of 14.16 and 175.5% above the Farm & Heavy Construction Machinery industry median of 6.78. Ashok Leyland's overall GF Score™ is 86/100 with 1 warning sign 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 Ashok Leyland (NSE:ASHOKLEY), the current Operating Margin % is 18.68% 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 Ashok Leyland (NSE:ASHOKLEY) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹154.91 is trading 19.7% above its estimated GF Value™ of ₹129.40.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for NSE:ASHOKLEY:
Operating Margin %: 18.68% (32% above median its 10-year median of 14.16)
GF Value™: ₹129.40 vs. price of ₹154.91 (19.7% above fair value)
Industry Position: 175.5% above the Farm & Heavy Construction Machinery median (#6 of 209)
No single metric tells the full story. See the NSE:ASHOKLEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.
86GF Score
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