SoftTech EngineersNSE:SOFTTECH -1.12%85 Operating Margin % is 8.85% as of Mar. 2026, which is 48% below its 10-year median of 16.91. GuruFocus rates NSE:SOFTTECH with a GF Score™ of 85/100 and a GF Value™ of ₹465.34 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,820 Software companies, SoftTech Engineers ranks better than 66.06% on this metric.
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.
SoftTech Engineers Operating Margin % Related Terms
SoftTech Engineers Operating Margin % Historical Data
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The historical data trend for SoftTech Engineers'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:SOFTTECH vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, SoftTech Engineers'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.
SoftTech Engineers Operating Margin % vs Software Industry
For the Software industry and Technology sector, SoftTech Engineers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SoftTech Engineers'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.
SoftTech Engineers'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.
SoftTech Engineers (NSE:SOFTTECH) has a Operating Margin % of 8.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SoftTech Engineers and its competitors. This is 48% below median its historical median of 16.91. Over the past decade, SoftTech Engineers' Operating Margin % has ranged from 6.23 to 24.29. According to the industry distribution chart, SoftTech Engineers ranks #957 out of 2820 companies in the Software industry, placing it in the top 33.9%.
Is SoftTech Engineers' Operating Margin % too high?
SoftTech Engineers' current Operating Margin % of 8.85% is 48% below median its 10-year median of 16.91. Over the past 10 years, this metric has ranged from a low of 6.23 to a high of 24.29. The Software industry median Operating Margin % is 3.87. SoftTech Engineers' value of 8.85% is 129% above this industry median. Based on the distribution chart, SoftTech Engineers ranks #957 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, SoftTech Engineers has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SoftTech Engineers' Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, SoftTech Engineers ranks #957 out of 2820 companies for Operating Margin %. This puts SoftTech Engineers in the upper half of its industry. The industry median Operating Margin % is 3.87. SoftTech Engineers' value of 8.85% is 129% above this benchmark. Historically, SoftTech Engineers' own Operating Margin % has ranged from 6.23 to 24.29 over the past decade. While the company's 10-year median is 16.91 vs. the industry median of 3.87, SoftTech Engineers 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 3.87, based on 2,820 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. SoftTech Engineers's current Operating Margin % of 8.85% is 129% 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 SoftTech Engineers and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoftTech Engineers's current Operating Margin % is 8.85%, which is 48% below median its own 10-year median of 16.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoftTech Engineers stock overvalued right now?
Based on GuruFocus' analysis, SoftTech Engineers (NSE:SOFTTECH) is currently considered Fairly Valued. The stock's GF Value™ is ₹465.34, compared to a current price of ₹440.00 — trading 5.4% below its estimated fair value. The current Operating Margin % is 8.85%, which is 48% below median its 10-year median of 16.91 and 129% above the Software industry median of 3.87. SoftTech Engineers' overall GF Score™ is 85/100 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 SoftTech Engineers (NSE:SOFTTECH), the current Operating Margin % is 8.85% 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 SoftTech Engineers (NSE:SOFTTECH) Overvalued in 2026?
Based on GuruFocus' analysis, SoftTech Engineers stock appears to be undervalued.
The current stock price of ₹440.00 is trading 5.4% below its estimated GF Value™ of ₹465.34.
GuruFocus considers SoftTech Engineers to be Fairly Valued.
Key valuation signals for NSE:SOFTTECH:
Operating Margin %: 8.85% (48% below median its 10-year median of 16.91)
GF Value™: ₹465.34 vs. price of ₹440.00 (5.4% below fair value)
Industry Position: 129% above the Software median (#957 of 2820)
No single metric tells the full story. See the NSE:SOFTTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoftTech Engineers Ltd is an information technology and software development services organisation, delivering end-to-end solutions in the Architectural-Engineering-Construction (AEC) space, catering to government bodies, municipalities, property developers, municipal corporations, investors, real estate companies, contractors, architects, and consultants. The company offers Building Information Modeling (BIM) services, Geographic Information Systems, and AI services engineered specifically for the construction and infrastructure industry. In addition, it offers a suite of software products, including CivitPLAN, CivitSustain, CivitBuild, CivitInfra, and CivitPermit to its clients. Geographically, the company derives a majority of its revenue from its business in India.
85GF Score
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