Indian Railway FinanceNSE:IRFC -0.79%70 Operating Margin % is 23.80% as of Mar. 2026, which is 58% below its 10-year median of 57.09. GuruFocus rates NSE:IRFC with a GF Score™ of 70/100 and a GF Value™ of ₹127.57 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 412 Credit Services companies, Indian Railway Finance ranks better than 60.68% on this metric.
Indian Railway Finance (NSE:IRFC) 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.
Indian Railway Finance Operating Margin % Related Terms
Indian Railway Finance Operating Margin % Historical Data
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The historical data trend for Indian Railway Finance'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:IRFC vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Indian Railway 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.
Indian Railway Finance Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's Operating Margin % falls into.
Indian Railway 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.
Indian Railway 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.
Indian Railway Finance (NSE:IRFC) has a Operating Margin % of 23.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Indian Railway Finance and its competitors. This is 58% below median its historical median of 57.09. Over the past decade, Indian Railway Finance's Operating Margin % has ranged from 23.94 to 96.72. According to the industry distribution chart, Indian Railway Finance ranks #162 out of 412 companies in the Credit Services industry, placing it in the top 39.3%.
Is Indian Railway Finance's Operating Margin % too high?
Indian Railway Finance's current Operating Margin % of 23.80% is 58% below median its 10-year median of 57.09. Over the past 10 years, this metric has ranged from a low of 23.94 to a high of 96.72. The Credit Services industry median Operating Margin % is 17.33. Indian Railway Finance's value of 23.80% is 37.4% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #162 out of 412 companies in the Credit Services industry, which is above the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #162 out of 412 companies for Operating Margin %. This puts Indian Railway Finance in the upper half of its industry. The industry median Operating Margin % is 17.33. Indian Railway Finance's value of 23.80% is 37.4% above this benchmark. Historically, Indian Railway Finance's own Operating Margin % has ranged from 23.94 to 96.72 over the past decade. While the company's 10-year median is 57.09 vs. the industry median of 17.33, Indian Railway 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. Indian Railway Finance's current Operating Margin % of 23.80% is 37.4% 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 Indian Railway 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. Indian Railway Finance's current Operating Margin % is 23.80%, which is 58% below median its own 10-year median of 57.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹127.57, compared to a current price of ₹91.77 — trading 28.1% below its estimated fair value. The current Operating Margin % is 23.80%, which is 58% below median its 10-year median of 57.09 and 37.4% above the Credit Services industry median of 17.33. Indian Railway Finance's overall GF Score™ is 70/100 with 9 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 Indian Railway Finance (NSE:IRFC), the current Operating Margin % is 23.80% 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 Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹91.77 is trading 28.1% below its estimated GF Value™ of ₹127.57.
GuruFocus considers Indian Railway Finance to be Modestly Undervalued.
Key valuation signals for NSE:IRFC:
Operating Margin %: 23.80% (58% below median its 10-year median of 57.09)
GF Value™: ₹127.57 vs. price of ₹91.77 (28.1% below fair value)
Industry Position: 37.4% above the Credit Services median (#162 of 412)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
70GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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