National FertilizersNSE:NFL -1.98%72 Operating Margin % is 5.09% as of Mar. 2026, which is 56% below its 10-year median of 11.64. GuruFocus rates NSE:NFL with a GF Score™ of 72/100 and a GF Value™ of ₹301.05 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 251 Agriculture companies, National Fertilizers ranks worse than 74.1% on this metric.
National Fertilizers (NSE:NFL) 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.
National Fertilizers Operating Margin % Related Terms
National Fertilizers Operating Margin % Historical Data
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The historical data trend for National Fertilizers'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:NFL vs CTVA, CF: Operating Margin % Comparison
For the Agricultural Inputs subindustry, National Fertilizers'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.
National Fertilizers Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, National Fertilizers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where National Fertilizers's Operating Margin % falls into.
National Fertilizers 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.
National Fertilizers'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.
National Fertilizers (NSE:NFL) has a Operating Margin % of 5.09% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on National Fertilizers and its competitors. This is 56% below median its historical median of 11.64. Over the past decade, National Fertilizers' Operating Margin % has ranged from 1.19 to 18.63. According to the industry distribution chart, National Fertilizers ranks #186 out of 251 companies in the Agriculture industry, placing it in the top 74.1%.
Is National Fertilizers' Operating Margin % too high?
National Fertilizers' current Operating Margin % of 5.09% is 56% below median its 10-year median of 11.64. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 18.63. The Agriculture industry median Operating Margin % is 6.76. National Fertilizers' value of 5.09% is 24.7% below this industry median. Based on the distribution chart, National Fertilizers ranks #186 out of 251 companies in the Agriculture industry, which is below the industry midpoint. Overall, National Fertilizers has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does National Fertilizers' Operating Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, National Fertilizers ranks #186 out of 251 companies for Operating Margin %. This places National Fertilizers in the lower half of its industry. The industry median Operating Margin % is 6.76. National Fertilizers' value of 5.09% is 24.7% below this benchmark. Historically, National Fertilizers' own Operating Margin % has ranged from 1.19 to 18.63 over the past decade. While the company's 10-year median is 11.64 vs. the industry median of 6.76, National Fertilizers has consistently been below 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 an Agriculture company?
The median Operating Margin % among Agriculture companies is 6.76, based on 251 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. National Fertilizers's current Operating Margin % of 5.09% is 24.7% below 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 National Fertilizers and its competitors. For the Agriculture industry, the median Operating Margin % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Fertilizers's current Operating Margin % is 5.09%, which is 56% below median its own 10-year median of 11.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Fertilizers stock overvalued right now?
Based on GuruFocus' analysis, National Fertilizers (NSE:NFL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹301.05, compared to a current price of ₹75.18 — trading 75% below its estimated fair value. The current Operating Margin % is 5.09%, which is 56% below median its 10-year median of 11.64 and 24.7% below the Agriculture industry median of 6.76. National Fertilizers' overall GF Score™ is 72/100 with 5 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 National Fertilizers (NSE:NFL), the current Operating Margin % is 5.09% 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 National Fertilizers (NSE:NFL) Overvalued in 2026?
Based on GuruFocus' analysis, National Fertilizers stock appears to be undervalued.
The current stock price of ₹75.18 is trading 75% below its estimated GF Value™ of ₹301.05.
GuruFocus considers National Fertilizers to be Possible Value Trap.
Key valuation signals for NSE:NFL:
Operating Margin %: 5.09% (56% below median its 10-year median of 11.64)
GF Value™: ₹301.05 vs. price of ₹75.18 (75% below fair value)
Industry Position: 24.7% below the Agriculture median (#186 of 251)
No single metric tells the full story. See the NSE:NFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Fertilizers Ltd is engaged in the business of manufacturing agro chemicals. Its product portfolio includes Neem Coated Urea, four strains of Bio-Fertilizers (solid & liquid), Bentonite Sulphur, and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, Sodium Nitrite and Sodium Nitrate. The brand name of the company is known in the market as KISAN. The company also provides agriculture extension services to educate farmers on fertilizers and the know-how on scientific methods of cultivation. Its operating segments include Manufactured Fertilizers which derive key revenue, Manufactured Chemicals, Traded Imported Fertilizers, and Others. Geographically, the company caters only to the Indian market.
72GF Score
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