IG PetrochemicalsNSE:IGPL +0.58%75 Operating Margin % is 8.82% as of Mar. 2026, which is 31% below its 10-year median of 12.72. GuruFocus rates NSE:IGPL with a GF Score™ of 75/100 and a GF Value™ of ₹400.58 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 1,584 Chemicals companies, IG Petrochemicals ranks worse than 73.67% on this metric.
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.
IG Petrochemicals Operating Margin % Related Terms
IG Petrochemicals Operating Margin % Historical Data
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The historical data trend for IG Petrochemicals'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.
For the Chemicals subindustry, IG Petrochemicals'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.
IG Petrochemicals Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, IG Petrochemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where IG Petrochemicals'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.
IG Petrochemicals'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.
IG Petrochemicals (NSE:IGPL) has a Operating Margin % of 8.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on IG Petrochemicals and its competitors. This is 31% below median its historical median of 12.72. Over the past decade, IG Petrochemicals' Operating Margin % has ranged from 1.33 to 23.40. According to the industry distribution chart, IG Petrochemicals ranks #1167 out of 1584 companies in the Chemicals industry, placing it in the top 73.7%.
Is IG Petrochemicals' Operating Margin % too high?
IG Petrochemicals' current Operating Margin % of 8.82% is 31% below median its 10-year median of 12.72. Over the past 10 years, this metric has ranged from a low of 1.33 to a high of 23.40. The Chemicals industry median Operating Margin % is 6.03. IG Petrochemicals' value of 8.82% is 46.4% above this industry median. Based on the distribution chart, IG Petrochemicals ranks #1167 out of 1584 companies in the Chemicals industry, which is below the industry midpoint. Overall, IG Petrochemicals has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IG Petrochemicals' Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, IG Petrochemicals ranks #1167 out of 1584 companies for Operating Margin %. This places IG Petrochemicals in the lower half of its industry. The industry median Operating Margin % is 6.03. IG Petrochemicals' value of 8.82% is 46.4% above this benchmark. Historically, IG Petrochemicals' own Operating Margin % has ranged from 1.33 to 23.40 over the past decade. While the company's 10-year median is 12.72 vs. the industry median of 6.03, IG Petrochemicals 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 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. IG Petrochemicals's current Operating Margin % of 8.82% is 46.4% 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 IG Petrochemicals and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IG Petrochemicals's current Operating Margin % is 8.82%, which is 31% below median its own 10-year median of 12.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IG Petrochemicals stock overvalued right now?
Based on GuruFocus' analysis, IG Petrochemicals (NSE:IGPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹400.58, compared to a current price of ₹444.80 — trading 11% above its estimated fair value. The current Operating Margin % is 8.82%, which is 31% below median its 10-year median of 12.72 and 46.4% above the Chemicals industry median of 6.03. IG Petrochemicals' overall GF Score™ is 75/100 with 10 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 IG Petrochemicals (NSE:IGPL), the current Operating Margin % is 8.82% 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 IG Petrochemicals (NSE:IGPL) Overvalued in 2026?
Based on GuruFocus' analysis, IG Petrochemicals stock appears to be overvalued.
The current stock price of ₹444.80 is trading 11% above its estimated GF Value™ of ₹400.58.
GuruFocus considers IG Petrochemicals to be Modestly Overvalued.
Key valuation signals for NSE:IGPL:
Operating Margin %: 8.82% (31% below median its 10-year median of 12.72)
GF Value™: ₹400.58 vs. price of ₹444.80 (11% above fair value)
Industry Position: 46.4% above the Chemicals median (#1167 of 1584)
No single metric tells the full story. See the NSE:IGPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IG Petrochemicals Ltd is engaged in the manufacture and sale of organic chemicals. The company produces Phthalic Anhydride, Maleic Anhydride, and Benzoic Acid. Phthalic Anhydride is used for the manufacture of polyvinyl chloride products for manufacturing a range of consumer care, personal care, and home care products like shoes, pipes and hoses, boxes, containers, packaging films, medical and surgical equipment, and others. Geographically, the firm has a presence in both the Indian and international markets of which the Indian region accounts for the majority of revenue.
75GF Score
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