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 ÷ Revenue × 100

How to Interpret

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

Typical Ranges

IT: 15-25%, Banking: 15-25%, FMCG: 10-20%, Manufacturing: 5-15%

Analyze Net Profit Margin by Sector

See how net profit margin varies across Indian market sectors:

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Find Stocks Using This Metric

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

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