Zota Health Care (NSE:ZOTA) 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.
Zota Health Care Operating Margin % Related Terms
Zota Health Care Operating Margin % Historical Data
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The historical data trend for Zota Health Care'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:ZOTA vs VRTX, REGN, ALNY: Operating Margin % Comparison
For the Biotechnology subindustry, Zota Health Care'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.
Zota Health Care Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zota Health Care's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zota Health Care'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.
Zota Health Care'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.
Zota Health Care (NSE:ZOTA) has a Operating Margin % of -11.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zota Health Care and its competitors. According to the industry distribution chart, Zota Health Care ranks #325 out of 944 companies in the Biotechnology industry, placing it in the top 34.4%.
Is Zota Health Care's Operating Margin % too high?
Zota Health Care's current Operating Margin % is -11.22%. Based on the distribution chart, Zota Health Care ranks #325 out of 944 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Zota Health Care has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zota Health Care's Operating Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Zota Health Care ranks #325 out of 944 companies for Operating Margin %. This puts Zota Health Care in the upper half of its industry. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Zota Health Care and its competitors. Zota Health Care's current Operating Margin % is -11.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zota Health Care stock overvalued right now?
Based on GuruFocus' analysis, Zota Health Care (NSE:ZOTA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,568.77, compared to a current price of ₹1,389.50 — trading 11.4% below its estimated fair value. The current Operating Margin % is -11.22%. Zota Health Care's overall GF Score™ is 77/100 with 3 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 Zota Health Care (NSE:ZOTA), the current Operating Margin % is -11.22% 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 Zota Health Care (NSE:ZOTA) Overvalued in 2026?
Based on GuruFocus' analysis, Zota Health Care stock appears to be undervalued.
The current stock price of ₹1,389.50 is trading 11.4% below its estimated GF Value™ of ₹1,568.77.
GuruFocus considers Zota Health Care to be Modestly Undervalued.
Key valuation signals for NSE:ZOTA:
Operating Margin %: -11.22%
GF Value™: ₹1,568.77 vs. price of ₹1,389.50 (11.4% below fair value)
No single metric tells the full story. See the NSE:ZOTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zota Health Care Ltd is engaged in the manufacturing, trading, and export of pharmaceutical products. The company caters to both domestic and international markets. It offers a vast range of pharmaceutical, nutraceutical, ayurvedic, and OTC products in India and overseas as well.
77GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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