Nestle IndiaNSE:NESTLEIND -0.69%97 Operating Margin % is 23.31% as of Mar. 2026, which is 14% above its 10-year median of 20.38. GuruFocus rates NSE:NESTLEIND with a GF Score™ of 97/100 and a GF Value™ of ₹1,477.10 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Nestle India ranks better than 91.75% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nestle India's Operating Income for the
three
months ended in Mar. 2026 was ₹15,671 Mil. Nestle India's Revenue for the
three
months ended in Mar. 2026 was ₹67,238 Mil. Therefore, Nestle India's Operating Margin % for the quarter that ended in Mar. 2026 was 23.31%.
The historical rank and industry rank for Nestle India's Operating Margin % or its related term are showing as below:
NSE:NESTLEIND'
s Operating Margin % Range Over the Past 10 Years
Min: 15.32 Med: 20.38 Max: 21.64
Current: 19.99
NSE:NESTLEIND's Operating Margin % is ranked better than 91.75% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs NSE:NESTLEIND: 19.99
Nestle India's 5-Year Average Operating Margin % Growth Rate was -0.70% per year.
Nestle India's Operating Income for the
three
months ended in Mar. 2026 was ₹15,671 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹46,113 Mil.
Nestle India (NSE:NESTLEIND) 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.
Nestle India Operating Margin % Related Terms
Nestle India Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nestle India'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:NESTLEIND vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, Nestle India'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.
Nestle India Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nestle India'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.
Nestle India'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.
Nestle India (NSE:NESTLEIND) has a Operating Margin % of 23.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nestle India and its competitors. This is 14% above median its historical median of 20.38. Over the past decade, Nestle India's Operating Margin % has ranged from 15.32 to 21.64. According to the industry distribution chart, Nestle India ranks #161 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 8.3%.
Is Nestle India's Operating Margin % too high?
Nestle India's current Operating Margin % of 23.31% is 14% above median its 10-year median of 20.38. Over the past 10 years, this metric has ranged from a low of 15.32 to a high of 21.64. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Nestle India's value of 23.31% is 343.2% above this industry median. Based on the distribution chart, Nestle India ranks #161 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle India has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle India's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle India ranks #161 out of 1951 companies for Operating Margin %. This places Nestle India in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Nestle India's value of 23.31% is 343.2% above this benchmark. Historically, Nestle India's own Operating Margin % has ranged from 15.32 to 21.64 over the past decade. While the company's 10-year median is 20.38 vs. the industry median of 5.26, Nestle India 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. Nestle India's current Operating Margin % of 23.31% is 343.2% 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 Nestle India and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle India's current Operating Margin % is 23.31%, which is 14% above median its own 10-year median of 20.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle India stock overvalued right now?
Based on GuruFocus' analysis, Nestle India (NSE:NESTLEIND) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,477.10, compared to a current price of ₹1,382.60 — trading 6.4% below its estimated fair value. The current Operating Margin % is 23.31%, which is 14% above median its 10-year median of 20.38 and 343.2% above the Consumer Packaged Goods industry median of 5.26. Nestle India's overall GF Score™ is 97/100 with 3 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 Nestle India (NSE:NESTLEIND), the current Operating Margin % is 23.31% 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 Nestle India (NSE:NESTLEIND) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle India stock appears to be undervalued.
The current stock price of ₹1,382.60 is trading 6.4% below its estimated GF Value™ of ₹1,477.10.
GuruFocus considers Nestle India to be Fairly Valued.
Key valuation signals for NSE:NESTLEIND:
Operating Margin %: 23.31% (14% above median its 10-year median of 20.38)
GF Value™: ₹1,477.10 vs. price of ₹1,382.60 (6.4% below fair value)
Industry Position: 343.2% above the Consumer Packaged Goods median (#161 of 1951)
No single metric tells the full story. See the NSE:NESTLEIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle India Ltd is mainly involved in Food business which incorporates product groups viz. Milk Products and Nutrition, Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages and Confectionery. The company's brand portfolio provides Nestle Healthy Breakfast Cereals, Coffee, Chocolates & Confectionery, Nutrition, Dairy, Foods, Vending and Food Services, My Nestle, Nestle Health Science, Import, Tea export, and NESTLE Ad Campaigns. The company has single operating segment. The company has presence in India and Outside India. The company generates majority of revenue from India.
97GF Score
Get the complete analysis for NSE:NESTLEIND
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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