Indostar Capital FinanceNSE:INDOSTAR -0.70%65 Operating Margin % is 25.95% as of Mar. 2026, which is 6% below its 10-year median of 27.68. GuruFocus rates NSE:INDOSTAR with a GF Score™ of 65/100 and a GF Value™ of ₹231.41 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 412 Credit Services companies, Indostar Capital Finance ranks worse than 50.24% on this metric.
The historical rank and industry rank for Indostar Capital Finance's Operating Margin % or its related term are showing as below:
NSE:INDOSTAR'
s Operating Margin % Range Over the Past 10 Years
Min: -21.05 Med: 27.68 Max: 66.1
Current: 17.29
NSE:INDOSTAR's Operating Margin % is ranked worse than 50.24% of 412
companies
in the Credit Services industry
Industry Median: 17.325
vs NSE:INDOSTAR: 17.29
Indostar Capital Finance (NSE:INDOSTAR) 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.
Indostar Capital Finance Operating Margin % Related Terms
Indostar Capital Finance Operating Margin % Historical Data
* 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:INDOSTAR vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Indostar Capital Finance'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.
Indostar Capital Finance Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indostar Capital Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Indostar Capital Finance's Operating Margin % falls into.
Indostar Capital Finance 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.
Indostar Capital Finance'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.
Indostar Capital Finance (NSE:INDOSTAR) has a Operating Margin % of 25.95% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Indostar Capital Finance and its competitors. This is near median its historical median of 27.68. According to the industry distribution chart, Indostar Capital Finance ranks #207 out of 412 companies in the Credit Services industry, placing it in the top 50.2%.
Is Indostar Capital Finance's Operating Margin % too high?
Indostar Capital Finance's current Operating Margin % of 25.95% is near median its 10-year median of 27.68. The Credit Services industry median Operating Margin % is 17.33. Indostar Capital Finance's value of 25.95% is 49.8% above this industry median. Based on the distribution chart, Indostar Capital Finance ranks #207 out of 412 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indostar Capital Finance has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Indostar Capital Finance's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Indostar Capital Finance ranks #207 out of 412 companies for Operating Margin %. This places Indostar Capital Finance in the lower half of its industry. The industry median Operating Margin % is 17.33. Indostar Capital Finance's value of 25.95% is 49.8% above this benchmark. While the company's 10-year median is 27.68 vs. the industry median of 17.33, Indostar Capital Finance 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. Indostar Capital Finance's current Operating Margin % of 25.95% is 49.8% 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 Indostar Capital Finance 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. Indostar Capital Finance's current Operating Margin % is 25.95%, which is near median its own 10-year median of 27.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indostar Capital Finance stock overvalued right now?
Based on GuruFocus' analysis, Indostar Capital Finance (NSE:INDOSTAR) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹231.41, compared to a current price of ₹258.43 — trading 11.7% above its estimated fair value. The current Operating Margin % is 25.95%, which is near median its 10-year median of 27.68 and 49.8% above the Credit Services industry median of 17.33. Indostar Capital Finance's overall GF Score™ is 65/100 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 Indostar Capital Finance (NSE:INDOSTAR), the current Operating Margin % is 25.95% 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 Indostar Capital Finance (NSE:INDOSTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Indostar Capital Finance stock appears to be overvalued.
The current stock price of ₹258.43 is trading 11.7% above its estimated GF Value™ of ₹231.41.
GuruFocus considers Indostar Capital Finance to be Modestly Overvalued.
Key valuation signals for NSE:INDOSTAR:
Operating Margin %: 25.95% (near median its 10-year median of 27.68)
GF Value™: ₹231.41 vs. price of ₹258.43 (11.7% above fair value)
Industry Position: 49.8% above the Credit Services median (#207 of 412)
No single metric tells the full story. See the NSE:INDOSTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indostar Capital Finance Ltd is a non-banking finance company. It is engaged in the business of lending to used and new commercial vehicles, corporates, SME businesses, and Micro businesses. Through its subsidiaries, it also offers investment advisory, housing finance, and asset management services. The group operates in the following segments: Large Corporate, SME, Commercial vehicle, and Housing Finance. The majority of its revenue is generated from the Commercial vehicle segment, which mainly consists of financing for used and new vehicles. Geographically, all of its operations are carried out within India.
65GF Score
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