KPIT TechnologiesNSE:KPITTECH +0.89%78 Operating Margin % is 14.04% as of Mar. 2026, which is 5% below its 10-year median of 14.76. GuruFocus rates NSE:KPITTECH with a GF Score™ of 78/100 and a GF Value™ of ₹1,804.25 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,820 Software companies, KPIT Technologies ranks better than 90.85% on this metric.
KPIT Technologies Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for KPIT Technologies's Operating Margin % or its related term are showing as below:
NSE:KPITTECH'
s Operating Margin % Range Over the Past 10 Years
Min: 8.75 Med: 14.76 Max: 23.69
Current: 23.69
NSE:KPITTECH's Operating Margin % is ranked better than 90.85% of 2820
companies
in the Software industry
Industry Median: 3.865
vs NSE:KPITTECH: 23.69
KPIT Technologies's 5-Year Average Operating Margin % Growth Rate was 9.90% 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.
KPIT Technologies Operating Margin % Related Terms
KPIT Technologies Operating Margin % Historical Data
* Premium members only.
The historical data trend for KPIT Technologies'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:KPITTECH vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, KPIT Technologies'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.
KPIT Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, KPIT Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KPIT Technologies'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.
KPIT Technologies'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.
KPIT Technologies (NSE:KPITTECH) has a Operating Margin % of 14.04% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on KPIT Technologies and its competitors. This is near median its historical median of 14.76. Over the past decade, KPIT Technologies' Operating Margin % has ranged from 8.75 to 23.69. According to the industry distribution chart, KPIT Technologies ranks #258 out of 2820 companies in the Software industry, placing it in the top 9.1%.
Is KPIT Technologies' Operating Margin % too high?
KPIT Technologies' current Operating Margin % of 14.04% is near median its 10-year median of 14.76. Over the past 10 years, this metric has ranged from a low of 8.75 to a high of 23.69. The Software industry median Operating Margin % is 3.87. KPIT Technologies' value of 14.04% is 263.3% above this industry median. Based on the distribution chart, KPIT Technologies ranks #258 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, KPIT Technologies has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does KPIT Technologies' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, KPIT Technologies ranks #258 out of 2820 companies for Operating Margin %. This places KPIT Technologies in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. KPIT Technologies' value of 14.04% is 263.3% above this benchmark. Historically, KPIT Technologies' own Operating Margin % has ranged from 8.75 to 23.69 over the past decade. While the company's 10-year median is 14.76 vs. the industry median of 3.87, KPIT Technologies 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 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. KPIT Technologies's current Operating Margin % of 14.04% is 263.3% 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 KPIT Technologies and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KPIT Technologies's current Operating Margin % is 14.04%, which is near median its own 10-year median of 14.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KPIT Technologies stock overvalued right now?
Based on GuruFocus' analysis, KPIT Technologies (NSE:KPITTECH) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,804.25, compared to a current price of ₹742.60 — trading 58.8% below its estimated fair value. The current Operating Margin % is 14.04%, which is near median its 10-year median of 14.76 and 263.3% above the Software industry median of 3.87. KPIT Technologies' overall GF Score™ is 78/100 with 2 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 KPIT Technologies (NSE:KPITTECH), the current Operating Margin % is 14.04% 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 KPIT Technologies (NSE:KPITTECH) Overvalued in 2026?
Based on GuruFocus' analysis, KPIT Technologies stock appears to be undervalued.
The current stock price of ₹742.60 is trading 58.8% below its estimated GF Value™ of ₹1,804.25.
GuruFocus considers KPIT Technologies to be Significantly Undervalued.
Key valuation signals for NSE:KPITTECH:
Operating Margin %: 14.04% (near median its 10-year median of 14.76)
GF Value™: ₹1,804.25 vs. price of ₹742.60 (58.8% below fair value)
Industry Position: 263.3% above the Software median (#258 of 2820)
No single metric tells the full story. See the NSE:KPITTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KPIT Technologies Ltd is a technology company that provides embedded software for the Automobile and Mobility industry. The company provides solutions for autonomous driving, connected vehicles, vehicle engineering and design, electric and conventional powertrains, and integrated diagnostics. Geographically, the company generates maximum revenue from the United Kingdom and Europe, and the rest from the Americas and the Rest of the world.
78GF Score
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