RACL GeartechNSE:RACLGEAR -0.41%69 Operating Margin % is 15.65% as of Mar. 2026, which is 5% above its 10-year median of 14.92. GuruFocus rates NSE:RACLGEAR with a GF Score™ of 69/100 and a GF Value™ of ₹1,328.36 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,324 Vehicles & Parts companies, RACL Geartech ranks better than 89.05% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. RACL Geartech's Operating Income for the
three
months ended in Mar. 2026 was ₹206 Mil. RACL Geartech's Revenue for the
three
months ended in Mar. 2026 was ₹1,317 Mil. Therefore, RACL Geartech's Operating Margin % for the quarter that ended in Mar. 2026 was 15.65%.
Warning Sign:
RACL Geartech Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for RACL Geartech's Operating Margin % or its related term are showing as below:
NSE:RACLGEAR'
s Operating Margin % Range Over the Past 10 Years
Min: 9.43 Med: 14.92 Max: 18.97
Current: 14.14
NSE:RACLGEAR's Operating Margin % is ranked better than 89.05% of 1324
companies
in the Vehicles & Parts industry
Industry Median: 4.865
vs NSE:RACLGEAR: 14.14
RACL Geartech's 5-Year Average Operating Margin % Growth Rate was -3.50% 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.
RACL Geartech Operating Margin % Related Terms
RACL Geartech Operating Margin % Historical Data
* Premium members only.
The historical data trend for RACL Geartech'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:RACLGEAR vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, RACL Geartech'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.
RACL Geartech Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, RACL Geartech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where RACL Geartech'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.
RACL Geartech'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.
RACL Geartech (NSE:RACLGEAR) has a Operating Margin % of 15.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on RACL Geartech and its competitors. This is near median its historical median of 14.92. Over the past decade, RACL Geartech's Operating Margin % has ranged from 9.43 to 18.97. According to the industry distribution chart, RACL Geartech ranks #145 out of 1324 companies in the Vehicles & Parts industry, placing it in the top 11%.
Is RACL Geartech's Operating Margin % too high?
RACL Geartech's current Operating Margin % of 15.65% is near median its 10-year median of 14.92. Over the past 10 years, this metric has ranged from a low of 9.43 to a high of 18.97. The Vehicles & Parts industry median Operating Margin % is 4.87. RACL Geartech's value of 15.65% is 221.7% above this industry median. Based on the distribution chart, RACL Geartech ranks #145 out of 1324 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, RACL Geartech has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does RACL Geartech's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, RACL Geartech ranks #145 out of 1324 companies for Operating Margin %. This places RACL Geartech in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.87. RACL Geartech's value of 15.65% is 221.7% above this benchmark. Historically, RACL Geartech's own Operating Margin % has ranged from 9.43 to 18.97 over the past decade. While the company's 10-year median is 14.92 vs. the industry median of 4.87, RACL Geartech 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.87, based on 1,324 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. RACL Geartech's current Operating Margin % of 15.65% is 221.7% 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 RACL Geartech and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RACL Geartech's current Operating Margin % is 15.65%, which is near median its own 10-year median of 14.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RACL Geartech stock overvalued right now?
Based on GuruFocus' analysis, RACL Geartech (NSE:RACLGEAR) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,328.36, compared to a current price of ₹1,367.90 — trading 3% above its estimated fair value. The current Operating Margin % is 15.65%, which is near median its 10-year median of 14.92 and 221.7% above the Vehicles & Parts industry median of 4.87. RACL Geartech's overall GF Score™ is 69/100 with 4 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 RACL Geartech (NSE:RACLGEAR), the current Operating Margin % is 15.65% 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 RACL Geartech (NSE:RACLGEAR) Overvalued in 2026?
Based on GuruFocus' analysis, RACL Geartech stock appears to be overvalued.
The current stock price of ₹1,367.90 is trading 3% above its estimated GF Value™ of ₹1,328.36.
GuruFocus considers RACL Geartech to be Fairly Valued.
Key valuation signals for NSE:RACLGEAR:
Operating Margin %: 15.65% (near median its 10-year median of 14.92)
GF Value™: ₹1,328.36 vs. price of ₹1,367.90 (3% above fair value)
Industry Position: 221.7% above the Vehicles & Parts median (#145 of 1324)
No single metric tells the full story. See the NSE:RACLGEAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RACL Geartech Ltd manufactures and markets automotive components. It specializes in gears, shafts, and other accessories. Its products include Transmission Gears and Shafts, Reduction Gears Trains CVT Gear Boxes, Engine Timing Gears, Sub-Assemblies, Sprockets and Ratchets, Precision Machined Parts, Synchronizing Cones and Rings and Industrial Gears. The firm produces automotive components for motorcycles and scooters, three-wheeler passenger vehicles, four-wheeler passenger vehicles, agricultural machinery, tractors, and light and heavy commercial vehicles. The group has a business presence globally. It generates its main revenue from exports.
69GF Score
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