NIIT Learning SystemsNSE:NIITMTS -3.29%34 Operating Margin % is 12.77% as of Mar. 2026, which is 30% below its 10-year median of 18.25. GuruFocus rates NSE:NIITMTS with a GF Score™ of 34/100 and a GF Value™ of ₹532.52 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 258 Education companies, NIIT Learning Systems ranks better than 60.85% on this metric.
NIIT Learning Systems (NSE:NIITMTS) 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.
NIIT Learning Systems Operating Margin % Related Terms
NIIT Learning Systems Operating Margin % Historical Data
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The historical data trend for NIIT Learning Systems'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:NIITMTS vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, NIIT Learning Systems'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.
NIIT Learning Systems Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, NIIT Learning Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NIIT Learning Systems's Operating Margin % falls into.
NIIT Learning Systems 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.
NIIT Learning Systems'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.
NIIT Learning Systems (NSE:NIITMTS) has a Operating Margin % of 12.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NIIT Learning Systems and its competitors. This is 30% below median its historical median of 18.25. Over the past decade, NIIT Learning Systems' Operating Margin % has ranged from 14.90 to 19.96. According to the industry distribution chart, NIIT Learning Systems ranks #101 out of 258 companies in the Education industry, placing it in the top 39.1%.
Is NIIT Learning Systems' Operating Margin % too high?
NIIT Learning Systems' current Operating Margin % of 12.77% is 30% below median its 10-year median of 18.25. Over the past 10 years, this metric has ranged from a low of 14.90 to a high of 19.96. The Education industry median Operating Margin % is 9.46. NIIT Learning Systems' value of 12.77% is 35% above this industry median. Based on the distribution chart, NIIT Learning Systems ranks #101 out of 258 companies in the Education industry, which is above the industry midpoint. Overall, NIIT Learning Systems has a GF Score™ of 34/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NIIT Learning Systems' Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, NIIT Learning Systems ranks #101 out of 258 companies for Operating Margin %. This puts NIIT Learning Systems in the upper half of its industry. The industry median Operating Margin % is 9.46. NIIT Learning Systems' value of 12.77% is 35% above this benchmark. Historically, NIIT Learning Systems' own Operating Margin % has ranged from 14.90 to 19.96 over the past decade. While the company's 10-year median is 18.25 vs. the industry median of 9.46, NIIT Learning Systems 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 an Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 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. NIIT Learning Systems's current Operating Margin % of 12.77% is 35% 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 NIIT Learning Systems and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NIIT Learning Systems's current Operating Margin % is 12.77%, which is 30% below median its own 10-year median of 18.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NIIT Learning Systems stock overvalued right now?
Based on GuruFocus' analysis, NIIT Learning Systems (NSE:NIITMTS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹532.52, compared to a current price of ₹227.43 — trading 57.3% below its estimated fair value. The current Operating Margin % is 12.77%, which is 30% below median its 10-year median of 18.25 and 35% above the Education industry median of 9.46. NIIT Learning Systems' overall GF Score™ is 34/100 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 NIIT Learning Systems (NSE:NIITMTS), the current Operating Margin % is 12.77% 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 NIIT Learning Systems (NSE:NIITMTS) Overvalued in 2026?
Based on GuruFocus' analysis, NIIT Learning Systems stock appears to be undervalued.
The current stock price of ₹227.43 is trading 57.3% below its estimated GF Value™ of ₹532.52.
GuruFocus considers NIIT Learning Systems to be Significantly Undervalued.
Key valuation signals for NSE:NIITMTS:
Operating Margin %: 12.77% (30% below median its 10-year median of 18.25)
GF Value™: ₹532.52 vs. price of ₹227.43 (57.3% below fair value)
Industry Position: 35% above the Education median (#101 of 258)
No single metric tells the full story. See the NSE:NIITMTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NIIT Learning Systems Ltd is engaged in providing managed training solutions which predominantly include technology-based solutions for learning and education management to improve efficiency and effectiveness to customers in the education sector in India and international markets. The company also offers a comprehensive suite of solutions including content, learning delivery, assessment, and technology for students and teachers, as well as solutions for institution administration and management. Geographically, the company derives a majority of its revenue from America, and the rest from Europe, India, and the rest of the world.
34GF Score
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