HDB Financial ServicesNSE:HDBFS -0.47%9 Operating Margin % is 35.64% as of Mar. 2026, which is 30% below its 10-year median of 51.26. GuruFocus rates NSE:HDBFS with a GF Score™ of 9/100. The stock has 3 warning signs investors should review. Among 412 Credit Services companies, HDB Financial Services ranks better than 71.84% on this metric.
The historical rank and industry rank for HDB Financial Services's Operating Margin % or its related term are showing as below:
NSE:HDBFS'
s Operating Margin % Range Over the Past 10 Years
Min: 34.24 Med: 51.26 Max: 52.49
Current: 34.24
NSE:HDBFS's Operating Margin % is ranked better than 71.84% of 412
companies
in the Credit Services industry
Industry Median: 17.325
vs NSE:HDBFS: 34.24
HDB Financial Services's 5-Year Average Operating Margin % Growth Rate was 0.00% 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.
HDB Financial Services Operating Margin % Related Terms
HDB Financial Services Operating Margin % Historical Data
* Premium members only.
The historical data trend for HDB Financial Services'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:HDBFS vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, HDB Financial Services'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.
HDB Financial Services Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, HDB Financial Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HDB Financial Services'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.
HDB Financial Services'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.
HDB Financial Services (NSE:HDBFS) has a Operating Margin % of 35.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HDB Financial Services and its competitors. This is 30% below median its historical median of 51.26. Over the past decade, HDB Financial Services' Operating Margin % has ranged from 34.24 to 52.49. According to the industry distribution chart, HDB Financial Services ranks #116 out of 412 companies in the Credit Services industry, placing it in the top 28.2%.
Is HDB Financial Services' Operating Margin % too high?
HDB Financial Services' current Operating Margin % of 35.64% is 30% below median its 10-year median of 51.26. Over the past 10 years, this metric has ranged from a low of 34.24 to a high of 52.49. The Credit Services industry median Operating Margin % is 17.33. HDB Financial Services' value of 35.64% is 105.7% above this industry median. Based on the distribution chart, HDB Financial Services ranks #116 out of 412 companies in the Credit Services industry, which is above the industry midpoint. Overall, HDB Financial Services has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does HDB Financial Services' Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, HDB Financial Services ranks #116 out of 412 companies for Operating Margin %. This puts HDB Financial Services in the upper half of its industry. The industry median Operating Margin % is 17.33. HDB Financial Services' value of 35.64% is 105.7% above this benchmark. Historically, HDB Financial Services' own Operating Margin % has ranged from 34.24 to 52.49 over the past decade. While the company's 10-year median is 51.26 vs. the industry median of 17.33, HDB Financial Services 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. HDB Financial Services's current Operating Margin % of 35.64% is 105.7% 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 HDB Financial Services and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDB Financial Services's current Operating Margin % is 35.64%, which is 30% below median its own 10-year median of 51.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDB Financial Services stock overvalued right now?
HDB Financial Services (NSE:HDBFS) has a current Operating Margin % of 35.64%. The current Operating Margin % is 35.64%, which is 30% below median its 10-year median of 51.26 and 105.7% above the Credit Services industry median of 17.33. HDB Financial Services' overall GF Score™ is 9/100 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 HDB Financial Services (NSE:HDBFS), the current Operating Margin % is 35.64% 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.
HDB Financial Services Ltd is a non-banking finance company that provides lending services and business process outsourcing. The company also offers services related to the marketing and promotion of various financial products. Additionally, it provides BPO services that encompass back-office services such as form processing, document verification, finance and accounting services, and correspondence management, as well as front-office services including contact center management, outbound marketing, and collection services. The company's operating segments are: Lending services and BPO services. The majority of its revenue is generated from the Lending services segment, which includes providing finance to retail customers for a variety of purposes. Its operations are concentrated in India.
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