Axita Cotton (NSE:AXITA) Operating Margin %: -7.06% (As of Mar. 2026)


NSE:AXITA Axita Cotton Ltd NSE:AXITA
66 GF Score
Price ₹7.55
GF Value ₹4.87
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Axita Cotton Operating Margin %?

Axita Cotton NSE:AXITA 66 Operating Margin % is -7.06% as of Mar. 2026. GuruFocus rates NSE:AXITA with a GF Score™ of 66/100 and a GF Value™ of ₹4.87 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,036 Manufacturing - Apparel & Accessories companies, Axita Cotton ranks worse than 74.23% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Axita Cotton's Operating Income for the three months ended in Mar. 2026 was ₹-43 Mil. Axita Cotton's Revenue for the three months ended in Mar. 2026 was ₹610 Mil. Therefore, Axita Cotton's Operating Margin % for the quarter that ended in Mar. 2026 was -7.06%.

Warning Sign:

Axita Cotton Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -43.8%.

The historical rank and industry rank for Axita Cotton's Operating Margin % or its related term are showing as below:

NSE:AXITA' s Operating Margin % Range Over the Past 10 Years
Min: -1.67   Med: 0.8   Max: 3.97
Current: -1.67


NSE:AXITA's Operating Margin % is ranked worse than
74.23% of 1036 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.075 vs NSE:AXITA: -1.67

Axita Cotton's 5-Year Average Operating Margin % Growth Rate was -43.80% per year.

Axita Cotton's Operating Income for the three months ended in Mar. 2026 was ₹-43 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹-47 Mil.


Axita Cotton  (NSE:AXITA) 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 Nokia’s 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.


Axita Cotton Operating Margin % Related Terms


Axita Cotton Operating Margin % Historical Data

* Premium members only.

The historical data trend for Axita Cotton'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.

Axita Cotton Operating Margin % Chart

Axita Cotton Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.09 3.97 2.34 0.03 0.10

Axita Cotton Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.34 -2.05 -0.44 0.46 -7.06

Axita Cotton Operating Margin % Competitor Comparison

For the Textile Manufacturing subindustry, Axita Cotton'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.


Axita Cotton Operating Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Axita Cotton's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Axita Cotton's Operating Margin % falls into.


NSE:AXITA
66GF Score
Axita Cotton Ltd NSE:AXITA
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Axita Cotton Operating Margin % Calculation

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.

Axita Cotton's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=3.854 / 3703.974
=0.10 %

Axita Cotton's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-43.064 / 610.314
=-7.06 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -7.06% mean?
Axita Cotton (NSE:AXITA) has a Operating Margin % of -7.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Axita Cotton and its competitors. According to the industry distribution chart, Axita Cotton ranks #769 out of 1036 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 74.2%.
Is Axita Cotton's Operating Margin % too high?
Axita Cotton's current Operating Margin % is -7.06%. Based on the distribution chart, Axita Cotton ranks #769 out of 1036 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Axita Cotton has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axita Cotton's Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Axita Cotton ranks #769 out of 1036 companies for Operating Margin %. This places Axita Cotton in the lower half of its industry. The industry median Operating Margin % is 4.08. 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,036 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. 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 Axita Cotton and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axita Cotton's current Operating Margin % is -7.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axita Cotton stock overvalued right now?
Based on GuruFocus' analysis, Axita Cotton (NSE:AXITA) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹4.87, compared to a current price of ₹7.55 — trading 55% above its estimated fair value. The current Operating Margin % is -7.06%. Axita Cotton's overall GF Score™ is 66/100 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 Axita Cotton (NSE:AXITA), the current Operating Margin % is -7.06% 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 Axita Cotton (NSE:AXITA) Overvalued in 2026?

Based on GuruFocus' analysis, Axita Cotton stock appears to be overvalued. The current stock price of ₹7.55 is trading 55% above its estimated GF Value™ of ₹4.87. GuruFocus considers Axita Cotton to be Significantly Overvalued.

Key valuation signals for NSE:AXITA:

  • Operating Margin %: -7.06%
  • GF Value™: ₹4.87 vs. price of ₹7.55 (55% above fair value)
  • GF Score™: 66/100 with 2 warning signs

No single metric tells the full story. See the NSE:AXITA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Axita Cotton Business Description

Other Exchanges 542285:India
Address Rannade House, First Floor, Opposite Sankalp Grace 3, Near Ishan Bunglows, Shilaj, Ahemdabad, GJ, IND, 380059
Axita Cotton Ltd is an India-based company engaged in the manufacturing, processing, and finishing of Kapas, cotton bales, and cotton seeds. It earns revenue from bales sales domestically, bales sales exports, and Shankar Kapasia.
66GF Score

Get the complete analysis for NSE:AXITA

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹7.55
Price
₹4.87
GF Value