Profitability

What is Net Profit Margin?

Net profit margin is the percentage of revenue that becomes actual profit after ALL expenses, taxes, interest, depreciation, and everything else.

Formula

Net Profit Margin = Net Income Γ· Revenue Γ— 100

How to Interpret

The bottom line efficiency metric. Rising net margins over time signal improving business quality.

Typical Ranges

US sectors: Software 20–30%, Pharma 18–28%, Banks 20–30%, Consumer Staples 8–15%, Retail 2–6%. Or international markets like India: IT 15–25%, Banking 15–25%, FMCG 10–20%, Manufacturing 5–15%.

Analyze Net Profit Margin by Indian Market Sector

See how net profit margin varies across major Indian (NSE/BSE) market sectors. US sector benchmarks are summarised in the Typical Ranges section above.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by Net Profit Margin.