Fidel SoftechNSE:FIDEL -0.13%87 Operating Margin % is 13.72% as of Mar. 2026, which is 33% below its 10-year median of 20.42. GuruFocus rates NSE:FIDEL with a GF Score™ of 87/100 and a GF Value™ of ₹310.00 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,820 Software companies, Fidel Softech ranks better than 84.22% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Fidel Softech's Operating Income for the
three
months ended in Mar. 2026 was ₹51.2 Mil. Fidel Softech's Revenue for the
three
months ended in Mar. 2026 was ₹372.7 Mil. Therefore, Fidel Softech's Operating Margin % for the quarter that ended in Mar. 2026 was 13.72%.
Warning Sign:
Fidel Softech Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.6%.
The historical rank and industry rank for Fidel Softech's Operating Margin % or its related term are showing as below:
NSE:FIDEL'
s Operating Margin % Range Over the Past 10 Years
Min: 16.37 Med: 20.42 Max: 23.42
Current: 17
NSE:FIDEL's Operating Margin % is ranked better than 84.22% of 2820
companies
in the Software industry
Industry Median: 3.865
vs NSE:FIDEL: 17.00
Fidel Softech's 5-Year Average Operating Margin % Growth Rate was -4.60% per year.
Fidel Softech's Operating Income for the
three
months ended in Mar. 2026 was ₹51.2 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹149.8 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.
Fidel Softech Operating Margin % Related Terms
Fidel Softech Operating Margin % Historical Data
* Premium members only.
The historical data trend for Fidel Softech'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:FIDEL vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Fidel Softech'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.
Fidel Softech Operating Margin % vs Software Industry
For the Software industry and Technology sector, Fidel Softech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fidel Softech'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.
Fidel Softech'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.
Fidel Softech (NSE:FIDEL) has a Operating Margin % of 13.72% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fidel Softech and its competitors. This is 33% below median its historical median of 20.42. Over the past decade, Fidel Softech's Operating Margin % has ranged from 16.37 to 23.42. According to the industry distribution chart, Fidel Softech ranks #445 out of 2820 companies in the Software industry, placing it in the top 15.8%.
Is Fidel Softech's Operating Margin % too high?
Fidel Softech's current Operating Margin % of 13.72% is 33% below median its 10-year median of 20.42. Over the past 10 years, this metric has ranged from a low of 16.37 to a high of 23.42. The Software industry median Operating Margin % is 3.87. Fidel Softech's value of 13.72% is 255% above this industry median. Based on the distribution chart, Fidel Softech ranks #445 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Fidel Softech has a GF Score™ of 87/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Fidel Softech's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Fidel Softech ranks #445 out of 2820 companies for Operating Margin %. This places Fidel Softech in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Fidel Softech's value of 13.72% is 255% above this benchmark. Historically, Fidel Softech's own Operating Margin % has ranged from 16.37 to 23.42 over the past decade. While the company's 10-year median is 20.42 vs. the industry median of 3.87, Fidel Softech 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 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. Fidel Softech's current Operating Margin % of 13.72% is 255% 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 Fidel Softech and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fidel Softech's current Operating Margin % is 13.72%, which is 33% below median its own 10-year median of 20.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fidel Softech stock overvalued right now?
Based on GuruFocus' analysis, Fidel Softech (NSE:FIDEL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹310.00, compared to a current price of ₹149.80 — trading 51.7% below its estimated fair value. The current Operating Margin % is 13.72%, which is 33% below median its 10-year median of 20.42 and 255% above the Software industry median of 3.87. Fidel Softech's overall GF Score™ is 87/100 with 5 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 Fidel Softech (NSE:FIDEL), the current Operating Margin % is 13.72% 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 Fidel Softech (NSE:FIDEL) Overvalued in 2026?
Based on GuruFocus' analysis, Fidel Softech stock appears to be undervalued.
The current stock price of ₹149.80 is trading 51.7% below its estimated GF Value™ of ₹310.00.
GuruFocus considers Fidel Softech to be Possible Value Trap.
Key valuation signals for NSE:FIDEL:
Operating Margin %: 13.72% (33% below median its 10-year median of 20.42)
GF Value™: ₹310.00 vs. price of ₹149.80 (51.7% below fair value)
Industry Position: 255% above the Software median (#445 of 2820)
No single metric tells the full story. See the NSE:FIDEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fidel Softech Ltd predominantly works with clients across diverse domains in the areas of Technology Implementation, Localization Services & Consulting or Staffing services. The company is operating only in one segment, namely Language Technology Services and Consultancy Services. Its service offerings include Technology Implementation Services including Software development, Testing, Enterprise solution Implementation & Support (ServiceNow, AWS, Automation Anywhere), Localization services including translation, software localization, video subtitling, consulting and staffing services for developers, testers, automation engineers, and enterprise support engineers among others. Geographically, the company generates a majority of its revenue from its customers located outside India.
87GF Score
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