Escorts KubotaNSE:ESCORTS +0.65%92 Operating Margin % is 10.49% as of Mar. 2026, which is 6% above its 10-year median of 9.85. GuruFocus rates NSE:ESCORTS with a GF Score™ of 92/100 and a GF Value™ of ₹3,932.00 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Escorts Kubota ranks better than 70.33% on this metric.
Escorts Kubota Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.2%.
The historical rank and industry rank for Escorts Kubota's Operating Margin % or its related term are showing as below:
NSE:ESCORTS'
s Operating Margin % Range Over the Past 10 Years
Min: 6.82 Med: 9.85 Max: 14.72
Current: 10.76
NSE:ESCORTS's Operating Margin % is ranked better than 70.33% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs NSE:ESCORTS: 10.76
Escorts Kubota's 5-Year Average Operating Margin % Growth Rate was -6.20% per year.
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.
Escorts Kubota Operating Margin % Related Terms
Escorts Kubota Operating Margin % Historical Data
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The historical data trend for Escorts Kubota'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:ESCORTS vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Escorts Kubota'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.
Escorts Kubota Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Escorts Kubota's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Escorts Kubota'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.
Escorts Kubota'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.
Escorts Kubota (NSE:ESCORTS) has a Operating Margin % of 10.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Escorts Kubota and its competitors. This is near median its historical median of 9.85. Over the past decade, Escorts Kubota's Operating Margin % has ranged from 6.82 to 14.72. According to the industry distribution chart, Escorts Kubota ranks #62 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 29.7%.
Is Escorts Kubota's Operating Margin % too high?
Escorts Kubota's current Operating Margin % of 10.49% is near median its 10-year median of 9.85. Over the past 10 years, this metric has ranged from a low of 6.82 to a high of 14.72. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Escorts Kubota's value of 10.49% is 54.7% above this industry median. Based on the distribution chart, Escorts Kubota ranks #62 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Escorts Kubota has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Escorts Kubota's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Escorts Kubota ranks #62 out of 209 companies for Operating Margin %. This puts Escorts Kubota in the upper half of its industry. The industry median Operating Margin % is 6.78. Escorts Kubota's value of 10.49% is 54.7% above this benchmark. Historically, Escorts Kubota's own Operating Margin % has ranged from 6.82 to 14.72 over the past decade. While the company's 10-year median is 9.85 vs. the industry median of 6.78, Escorts Kubota 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. Escorts Kubota's current Operating Margin % of 10.49% is 54.7% 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 Escorts Kubota 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. Escorts Kubota's current Operating Margin % is 10.49%, which is near median its own 10-year median of 9.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Escorts Kubota stock overvalued right now?
Based on GuruFocus' analysis, Escorts Kubota (NSE:ESCORTS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,932.00, compared to a current price of ₹2,949.70 — trading 25% below its estimated fair value. The current Operating Margin % is 10.49%, which is near median its 10-year median of 9.85 and 54.7% above the Farm & Heavy Construction Machinery industry median of 6.78. Escorts Kubota's overall GF Score™ is 92/100 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 Escorts Kubota (NSE:ESCORTS), the current Operating Margin % is 10.49% 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 Escorts Kubota (NSE:ESCORTS) Overvalued in 2026?
Based on GuruFocus' analysis, Escorts Kubota stock appears to be undervalued.
The current stock price of ₹2,949.70 is trading 25% below its estimated GF Value™ of ₹3,932.00.
GuruFocus considers Escorts Kubota to be Modestly Undervalued.
Key valuation signals for NSE:ESCORTS:
Operating Margin %: 10.49% (near median its 10-year median of 9.85)
GF Value™: ₹3,932.00 vs. price of ₹2,949.70 (25% below fair value)
Industry Position: 54.7% above the Farm & Heavy Construction Machinery median (#62 of 209)
No single metric tells the full story. See the NSE:ESCORTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Escorts Kubota Ltd is engaged in manufacturing, sales, marketing, trading and customer support of Agrimachinery Products (Tractors, Harvesters, Engines, Implements, Spare parts, Oils Lubes etc.), Construction Equipment Products (Material Handling Cranes, Road Compaction and Earth moving equipment's, Spare parts etc.). It operates in two core business segments Agri Machinery and Construction Equipment. The Agri Machinery Products segment comprises the tractor business and the non-tractor business, including Agri Solutions, Engine Business, and Spare Parts & Services. The Construction Equipment segment serves the infrastructure, construction and allied sectors through a portfolio of pick-and-carry cranes, backhoe loaders, mini excavators and compactors.
92GF Score
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