Company analysis
What is operating margin?
What share of each rupee of sales survives as operating profit.
Explained in more detail
It shows how much room a business has between its selling price and its costs. A widening margin suggests pricing power or improving efficiency. A shrinking one usually means competition or rising input costs.
An example
For instance₹15 of operating profit on ₹100 of sales is a 15% operating margin.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time operating margin appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.