ITCNSE:ITC -0.43%81 Operating Margin % is 36.88% as of Mar. 2026, which is 9% above its 10-year median of 33.92. GuruFocus rates NSE:ITC with a GF Score™ of 81/100 and a GF Value™ of ₹464.33 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 48 Tobacco Products companies, ITC ranks better than 85.42% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. ITC's Operating Income for the
three
months ended in Mar. 2026 was ₹65,023 Mil. ITC's Revenue for the
three
months ended in Mar. 2026 was ₹176,289 Mil. Therefore, ITC's Operating Margin % for the quarter that ended in Mar. 2026 was 36.88%.
Good Sign:
ITC Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for ITC's Operating Margin % or its related term are showing as below:
NSE:ITC'
s Operating Margin % Range Over the Past 10 Years
Min: 31.45 Med: 33.92 Max: 36.14
Current: 32.74
NSE:ITC's Operating Margin % is ranked better than 85.42% of 48
companies
in the Tobacco Products industry
Industry Median: 9.365
vs NSE:ITC: 32.74
ITC's 5-Year Average Operating Margin % Growth Rate was 0.90% per year.
ITC's Operating Income for the
three
months ended in Mar. 2026 was ₹65,023 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹256,074 Mil.
ITC (NSE:ITC) 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.
ITC Operating Margin % Related Terms
ITC Operating Margin % Historical Data
* Premium members only.
The historical data trend for ITC'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:ITC vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, ITC'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.
ITC Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, ITC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ITC'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.
ITC'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.
ITC (NSE:ITC) has a Operating Margin % of 36.88% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ITC and its competitors. This is near median its historical median of 33.92. Over the past decade, ITC's Operating Margin % has ranged from 31.45 to 36.14. According to the industry distribution chart, ITC ranks #7 out of 48 companies in the Tobacco Products industry, placing it in the top 14.6%.
Is ITC's Operating Margin % too high?
ITC's current Operating Margin % of 36.88% is near median its 10-year median of 33.92. Over the past 10 years, this metric has ranged from a low of 31.45 to a high of 36.14. The Tobacco Products industry median Operating Margin % is 9.37. ITC's value of 36.88% is 293.8% above this industry median. Based on the distribution chart, ITC ranks #7 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, ITC has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ITC's Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #7 out of 48 companies for Operating Margin %. This places ITC in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.37. ITC's value of 36.88% is 293.8% above this benchmark. Historically, ITC's own Operating Margin % has ranged from 31.45 to 36.14 over the past decade. While the company's 10-year median is 33.92 vs. the industry median of 9.37, ITC 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 Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 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. ITC's current Operating Margin % of 36.88% is 293.8% 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 ITC and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current Operating Margin % is 36.88%, which is near median its own 10-year median of 33.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
Based on GuruFocus' analysis, ITC (NSE:ITC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹464.33, compared to a current price of ₹290.00 — trading 37.5% below its estimated fair value. The current Operating Margin % is 36.88%, which is near median its 10-year median of 33.92 and 293.8% above the Tobacco Products industry median of 9.37. ITC's overall GF Score™ is 81/100 with 1 warning sign 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 ITC (NSE:ITC), the current Operating Margin % is 36.88% 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 ITC (NSE:ITC) Overvalued in 2026?
Based on GuruFocus' analysis, ITC stock appears to be undervalued.
The current stock price of ₹290.00 is trading 37.5% below its estimated GF Value™ of ₹464.33.
GuruFocus considers ITC to be Significantly Undervalued.
Key valuation signals for NSE:ITC:
Operating Margin %: 36.88% (near median its 10-year median of 33.92)
GF Value™: ₹464.33 vs. price of ₹290.00 (37.5% below fair value)
Industry Position: 293.8% above the Tobacco Products median (#7 of 48)
No single metric tells the full story. See the NSE:ITC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
81GF Score
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