Vardhman TextilesNSE:VTL +1.06%77 Operating Margin % is 6.86% as of Mar. 2026, which is 31% below its 10-year median of 9.98. GuruFocus rates NSE:VTL with a GF Score™ of 77/100 and a GF Value™ of ₹476.77 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,043 Manufacturing - Apparel & Accessories companies, Vardhman Textiles ranks better than 68.55% on this metric.
Vardhman Textiles Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.9%.
The historical rank and industry rank for Vardhman Textiles's Operating Margin % or its related term are showing as below:
NSE:VTL'
s Operating Margin % Range Over the Past 10 Years
Min: 6.85 Med: 9.98 Max: 21.41
Current: 7.84
NSE:VTL's Operating Margin % is ranked better than 68.55% of 1043
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.08
vs NSE:VTL: 7.84
Vardhman Textiles's 5-Year Average Operating Margin % Growth Rate was -10.90% 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.
Vardhman Textiles Operating Margin % Related Terms
Vardhman Textiles Operating Margin % Historical Data
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The historical data trend for Vardhman Textiles'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.
For the Textile Manufacturing subindustry, Vardhman Textiles'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.
Vardhman Textiles Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Textiles's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vardhman Textiles'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.
Vardhman Textiles'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.
Vardhman Textiles (NSE:VTL) has a Operating Margin % of 6.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vardhman Textiles and its competitors. This is 31% below median its historical median of 9.98. Over the past decade, Vardhman Textiles' Operating Margin % has ranged from 6.85 to 21.41. According to the industry distribution chart, Vardhman Textiles ranks #328 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 31.4%.
Is Vardhman Textiles' Operating Margin % too high?
Vardhman Textiles' current Operating Margin % of 6.86% is 31% below median its 10-year median of 9.98. Over the past 10 years, this metric has ranged from a low of 6.85 to a high of 21.41. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Vardhman Textiles' value of 6.86% is 68.1% above this industry median. Based on the distribution chart, Vardhman Textiles ranks #328 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Vardhman Textiles has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Textiles' Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Vardhman Textiles ranks #328 out of 1043 companies for Operating Margin %. This puts Vardhman Textiles in the upper half of its industry. The industry median Operating Margin % is 4.08. Vardhman Textiles' value of 6.86% is 68.1% above this benchmark. Historically, Vardhman Textiles' own Operating Margin % has ranged from 6.85 to 21.41 over the past decade. While the company's 10-year median is 9.98 vs. the industry median of 4.08, Vardhman Textiles 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,043 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. Vardhman Textiles's current Operating Margin % of 6.86% is 68.1% 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 Vardhman Textiles and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Textiles's current Operating Margin % is 6.86%, which is 31% below median its own 10-year median of 9.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Textiles stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Textiles (NSE:VTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹476.77, compared to a current price of ₹645.30 — trading 35.3% above its estimated fair value. The current Operating Margin % is 6.86%, which is 31% below median its 10-year median of 9.98 and 68.1% above the Manufacturing - Apparel & Accessories industry median of 4.08. Vardhman Textiles' overall GF Score™ is 77/100 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 Vardhman Textiles (NSE:VTL), the current Operating Margin % is 6.86% 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 Vardhman Textiles (NSE:VTL) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Textiles stock appears to be overvalued.
The current stock price of ₹645.30 is trading 35.3% above its estimated GF Value™ of ₹476.77.
GuruFocus considers Vardhman Textiles to be Significantly Overvalued.
Key valuation signals for NSE:VTL:
Operating Margin %: 6.86% (31% below median its 10-year median of 9.98)
GF Value™: ₹476.77 vs. price of ₹645.30 (35.3% above fair value)
Industry Position: 68.1% above the Manufacturing - Apparel & Accessories median (#328 of 1043)
No single metric tells the full story. See the NSE:VTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Textiles Ltd is a manufacturer and seller of textiles and acrylic fiber. The company's segments include: Textile and Fibre. The company derives majority of its revenue from Textiles segment, which offers greige and dyed yarns in a number of fabrics such as cotton, polyester, acrylic, organic cotton, melange, cellulose, and synthetics. The company provides fabrics for the apparel industry and home textiles and manufactures shirts for retail brands. In addition, It offers hot-rolled bars for use in industries such as automotive, engineering, and allied industries. Geographically, it operates in India as well as Overseas.
77GF Score
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