Devyani InternationalNSE:DEVYANI -2.16%76 Operating Margin % is 3.27% as of Mar. 2026, which is 43% below its 10-year median of 5.71. GuruFocus rates NSE:DEVYANI with a GF Score™ of 76/100 and a GF Value™ of ₹241.27 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 365 Restaurants companies, Devyani International ranks worse than 56.16% on this metric.
Devyani International (NSE:DEVYANI) 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.
Devyani International Operating Margin % Related Terms
Devyani International Operating Margin % Historical Data
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The historical data trend for Devyani International'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:DEVYANI vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Devyani International'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.
Devyani International Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Devyani International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Devyani International's Operating Margin % falls into.
Devyani International 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.
Devyani International'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.
Devyani International (NSE:DEVYANI) has a Operating Margin % of 3.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Devyani International and its competitors. This is 43% below median its historical median of 5.71. Over the past decade, Devyani International's Operating Margin % has ranged from 0.21 to 12.30. According to the industry distribution chart, Devyani International ranks #205 out of 365 companies in the Restaurants industry, placing it in the top 56.2%.
Is Devyani International's Operating Margin % too high?
Devyani International's current Operating Margin % of 3.27% is 43% below median its 10-year median of 5.71. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 12.30. The Restaurants industry median Operating Margin % is 4.26. Devyani International's value of 3.27% is 23.2% below this industry median. Based on the distribution chart, Devyani International ranks #205 out of 365 companies in the Restaurants industry, which is below the industry midpoint. Overall, Devyani International has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Devyani International's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Devyani International ranks #205 out of 365 companies for Operating Margin %. This places Devyani International in the lower half of its industry. The industry median Operating Margin % is 4.26. Devyani International's value of 3.27% is 23.2% below this benchmark. Historically, Devyani International's own Operating Margin % has ranged from 0.21 to 12.30 over the past decade. While the company's 10-year median is 5.71 vs. the industry median of 4.26, Devyani International has consistently been below 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 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. Devyani International's current Operating Margin % of 3.27% is 23.2% below 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 Devyani International and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Devyani International's current Operating Margin % is 3.27%, which is 43% below median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Devyani International stock overvalued right now?
Based on GuruFocus' analysis, Devyani International (NSE:DEVYANI) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹241.27, compared to a current price of ₹112.84 — trading 53.2% below its estimated fair value. The current Operating Margin % is 3.27%, which is 43% below median its 10-year median of 5.71 and 23.2% below the Restaurants industry median of 4.26. Devyani International's overall GF Score™ is 76/100 with 3 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 Devyani International (NSE:DEVYANI), the current Operating Margin % is 3.27% 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 Devyani International (NSE:DEVYANI) Overvalued in 2026?
Based on GuruFocus' analysis, Devyani International stock appears to be undervalued.
The current stock price of ₹112.84 is trading 53.2% below its estimated GF Value™ of ₹241.27.
GuruFocus considers Devyani International to be Significantly Undervalued.
Key valuation signals for NSE:DEVYANI:
Operating Margin %: 3.27% (43% below median its 10-year median of 5.71)
GF Value™: ₹241.27 vs. price of ₹112.84 (53.2% below fair value)
Industry Position: 23.2% below the Restaurants median (#205 of 365)
No single metric tells the full story. See the NSE:DEVYANI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Devyani International Ltd is a franchisee of Yum Brands in India and is among the largest operators of a quick-service restaurant chain (QSR chain), operating around 1,243 stores across 155 cities in India. Companies products includes PizzaHut, KFC, Costa Coffee, Vaang.o, The Food Street, and more. Geographically, operates domestically and internationally, with the majority of revenue from India.
76GF Score
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