Rama TelecomNSE:RTL -1.77%18 Operating Margin % is 21.40% as of Mar. 2025, which is 175% above its 10-year median of 7.77. GuruFocus rates NSE:RTL with a GF Score™ of 18/100. The stock has 8 warning signs investors should review. Among 367 Telecommunication Services companies, Rama Telecom ranks better than 70.84% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Rama Telecom's Operating Income for the
six
months ended in Mar. 2025 was ₹50.0 Mil. Rama Telecom's Revenue for the
six
months ended in Mar. 2025 was ₹233.8 Mil. Therefore, Rama Telecom's Operating Margin % for the quarter that ended in Mar. 2025 was 21.40%.
The historical rank and industry rank for Rama Telecom's Operating Margin % or its related term are showing as below:
NSE:RTL'
s Operating Margin % Range Over the Past 10 Years
Min: 5.05 Med: 7.77 Max: 17.34
Current: 17.34
NSE:RTL's Operating Margin % is ranked better than 70.84% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs NSE:RTL: 17.34
Rama Telecom's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Rama Telecom's Operating Income for the
six
months ended in Mar. 2025 was ₹50.0 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was ₹72.4 Mil.
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.
Rama Telecom Operating Margin % Related Terms
Rama Telecom Operating Margin % Historical Data
* Premium members only.
The historical data trend for Rama Telecom'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.
Rama Telecom Operating Margin % Chart
Rama Telecom Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Operating Margin %
5.05
5.13
10.40
17.34
Rama Telecom Semi-Annual Data
Mar22
Mar23
Mar24
Sep24
Mar25
Operating Margin %
0.00
0.00
0.00
12.17
21.40
NSE:RTL vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Rama Telecom'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.
Rama Telecom Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Rama Telecom's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rama Telecom'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.
Rama Telecom's Operating Margin % for the fiscal year that ended in Mar. 2025 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.
Rama Telecom (NSE:RTL) has a Operating Margin % of 21.40% as of Mar. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Rama Telecom and its competitors. This is 175% above median its historical median of 7.77. Over the past decade, Rama Telecom's Operating Margin % has ranged from 5.05 to 17.34. According to the industry distribution chart, Rama Telecom ranks #107 out of 367 companies in the Telecommunication Services industry, placing it in the top 29.2%.
Is Rama Telecom's Operating Margin % too high?
Rama Telecom's current Operating Margin % of 21.40% is 175% above median its 10-year median of 7.77. Over the past 10 years, this metric has ranged from a low of 5.05 to a high of 17.34. The Telecommunication Services industry median Operating Margin % is 9.73. Rama Telecom's value of 21.40% is 119.9% above this industry median. Based on the distribution chart, Rama Telecom ranks #107 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Rama Telecom ranks #107 out of 367 companies for Operating Margin %. This puts Rama Telecom in the upper half of its industry. The industry median Operating Margin % is 9.73. Rama Telecom's value of 21.40% is 119.9% above this benchmark. Historically, Rama Telecom's own Operating Margin % has ranged from 5.05 to 17.34 over the past decade. While the company's 10-year median is 7.77 vs. the industry median of 9.73, Rama Telecom 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. Rama Telecom's current Operating Margin % of 21.40% is 119.9% 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 Rama Telecom and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Telecom's current Operating Margin % is 21.40%, which is 175% above median its own 10-year median of 7.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current Operating Margin % of 21.40%. The current Operating Margin % is 21.40%, which is 175% above median its 10-year median of 7.77 and 119.9% above the Telecommunication Services industry median of 9.73. Rama Telecom's overall GF Score™ is 18/100 with 8 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 Rama Telecom (NSE:RTL), the current Operating Margin % is 21.40% as of Mar. 2025. 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.
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
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