Torrent Pharmaceuticals Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Torrent Pharmaceuticals's Operating Margin % or its related term are showing as below:
NSE:TORNTPHARM'
s Operating Margin % Range Over the Past 10 Years
Min: 16.15 Med: 21.82 Max: 25.85
Current: 25.01
NSE:TORNTPHARM's Operating Margin % is ranked better than 90.05% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs NSE:TORNTPHARM: 25.01
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.
Torrent Pharmaceuticals Operating Margin % Related Terms
Torrent Pharmaceuticals Operating Margin % Historical Data
* Premium members only.
The historical data trend for Torrent Pharmaceuticals'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:TORNTPHARM vs ZTS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Torrent Pharmaceuticals'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.
Torrent Pharmaceuticals Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Torrent Pharmaceuticals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Torrent Pharmaceuticals'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.
Torrent Pharmaceuticals'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.
Torrent Pharmaceuticals (NSE:TORNTPHARM) has a Operating Margin % of 20.54% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Torrent Pharmaceuticals and its competitors. This is near median its historical median of 21.82. Over the past decade, Torrent Pharmaceuticals' Operating Margin % has ranged from 16.15 to 25.85. According to the industry distribution chart, Torrent Pharmaceuticals ranks #95 out of 955 companies in the Drug Manufacturers industry, placing it in the top 9.9%.
Is Torrent Pharmaceuticals' Operating Margin % too high?
Torrent Pharmaceuticals' current Operating Margin % of 20.54% is near median its 10-year median of 21.82. Over the past 10 years, this metric has ranged from a low of 16.15 to a high of 25.85. The Drug Manufacturers industry median Operating Margin % is 7.45. Torrent Pharmaceuticals' value of 20.54% is 175.7% above this industry median. Based on the distribution chart, Torrent Pharmaceuticals ranks #95 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Torrent Pharmaceuticals has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Torrent Pharmaceuticals' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Torrent Pharmaceuticals ranks #95 out of 955 companies for Operating Margin %. This places Torrent Pharmaceuticals in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Torrent Pharmaceuticals' value of 20.54% is 175.7% above this benchmark. Historically, Torrent Pharmaceuticals' own Operating Margin % has ranged from 16.15 to 25.85 over the past decade. While the company's 10-year median is 21.82 vs. the industry median of 7.45, Torrent Pharmaceuticals 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Torrent Pharmaceuticals's current Operating Margin % of 20.54% is 175.7% 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 Torrent Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Torrent Pharmaceuticals's current Operating Margin % is 20.54%, which is near median its own 10-year median of 21.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Torrent Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Torrent Pharmaceuticals (NSE:TORNTPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,296.81, compared to a current price of ₹4,516.20 — trading 5.1% above its estimated fair value. The current Operating Margin % is 20.54%, which is near median its 10-year median of 21.82 and 175.7% above the Drug Manufacturers industry median of 7.45. Torrent Pharmaceuticals' overall GF Score™ is 80/100 with 6 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 Torrent Pharmaceuticals (NSE:TORNTPHARM), the current Operating Margin % is 20.54% 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 Torrent Pharmaceuticals (NSE:TORNTPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Torrent Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹4,516.20 is trading 5.1% above its estimated GF Value™ of ₹4,296.81.
GuruFocus considers Torrent Pharmaceuticals to be Fairly Valued.
Key valuation signals for NSE:TORNTPHARM:
Operating Margin %: 20.54% (near median its 10-year median of 21.82)
GF Value™: ₹4,296.81 vs. price of ₹4,516.20 (5.1% above fair value)
Industry Position: 175.7% above the Drug Manufacturers median (#95 of 955)
No single metric tells the full story. See the NSE:TORNTPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Torrent Pharmaceuticals Ltd is a drug manufacturing company with a focus on the cardiovascular, central nervous system, Vitamins Minerals Nutrients (VMN), and gastrointestinal therapeutic areas. It operates through the Generic Formulation Business segment. Geographically, the business activities are carried out across Indian and International markets. Maximum revenue for the company is generated from its operations in India.
80GF Score
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