Sahana SystemNSE:SAHANA +0.26%65 Operating Margin % is 32.84% as of Mar. 2025, which is 15% above its 10-year median of 28.58. GuruFocus rates NSE:SAHANA with a GF Score™ of 65/100. The stock has 4 warning signs investors should review. Among 2,817 Software companies, Sahana System ranks better than 96.06% on this metric.
Sahana System (NSE:SAHANA) 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.
Sahana System Operating Margin % Related Terms
Sahana System Operating Margin % Historical Data
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The historical data trend for Sahana System'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:SAHANA vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Sahana System'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.
Sahana System Operating Margin % vs Software Industry
For the Software industry and Technology sector, Sahana System's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sahana System'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.
Sahana System'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.
Sahana System (NSE:SAHANA) has a Operating Margin % of 32.84% as of Mar. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sahana System and its competitors. This is 15% above median its historical median of 28.58. Over the past decade, Sahana System's Operating Margin % has ranged from 10.72 to 39.38. According to the industry distribution chart, Sahana System ranks #111 out of 2817 companies in the Software industry, placing it in the top 3.9%.
Is Sahana System's Operating Margin % too high?
Sahana System's current Operating Margin % of 32.84% is 15% above median its 10-year median of 28.58. Over the past 10 years, this metric has ranged from a low of 10.72 to a high of 39.38. The Software industry median Operating Margin % is 3.79. Sahana System's value of 32.84% is 766.5% above this industry median. Based on the distribution chart, Sahana System ranks #111 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sahana System has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Sahana System's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Sahana System ranks #111 out of 2817 companies for Operating Margin %. This places Sahana System in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.79. Sahana System's value of 32.84% is 766.5% above this benchmark. Historically, Sahana System's own Operating Margin % has ranged from 10.72 to 39.38 over the past decade. While the company's 10-year median is 28.58 vs. the industry median of 3.79, Sahana System 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 Software company?
The median Operating Margin % among Software companies is 3.79, based on 2,817 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. Sahana System's current Operating Margin % of 32.84% is 766.5% 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 Sahana System and its competitors. For the Software industry, the median Operating Margin % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sahana System's current Operating Margin % is 32.84%, which is 15% above median its own 10-year median of 28.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sahana System stock overvalued right now?
Sahana System (NSE:SAHANA) has a current Operating Margin % of 32.84%. The current Operating Margin % is 32.84%, which is 15% above median its 10-year median of 28.58 and 766.5% above the Software industry median of 3.79. Sahana System's overall GF Score™ is 65/100 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 Sahana System (NSE:SAHANA), the current Operating Margin % is 32.84% 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.
Sahana System Ltd is engaged in the business of offering IT-related services including web app development, mobile application development, AI & ML development, ChatBot development, product prototyping, graphics designing, UI-UX design, SEO & ASO, digital marketing, website & application migration, cyber security and outsourcing of IT services. The company is also engaged in the trading of hardware instruments related to Franking Machines, Computers, LEDs, Laptops, and others. The segments of the company are IT Services and Hardware Trading.
65GF Score
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