Operating margin is a financial metric that signifies the percentage of revenue a company keeps as profit after paying for its operating expenses, excluding interest and taxes. It defines how effectively a company operates its core business. A greater operating margin means higher profitability from operations.In this article, we will look at three companies that have a high operating margin.
In this article, we will look at three companies that have a high operating margin:
1. HDFC Asset Management Company
HDFC Asset Management Company Limited was established in December 1999 and is based in Mumbai. It is a publicly traded investment manager and a subsidiary of HDFC Bank. It has a diverse array of mutual funds and portfolios in equity, fixed income, and balanced asset classes. The company applies fundamental analysis for investments and serves both individual and institutional investors.
It reported a revenue of Rs 3,498 crores in FY25, up by 57 percent from its FY24 revenue of Rs 3,159 crores. It reported a net profit of Rs 2,461 crores in FY25, up by 26 percent, from its FY24 net profit of Rs 1,946 crores. It has been maintaining a strong operating margin ranging between 78-80 percent over the last five years.
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2. E2E Networks
E2E Networks Limited offers cloud computing and infrastructure services in India. Its cloud solution supports deployment and management of high-performance Linux, Windows, and GPU cloud machines for workloads such as data science, NLP, computer vision, and enterprise applications. The company’s solutions comprise smart dedicated compute, large-memory configurations, storage offerings, and cloud GPUs.
It reported a revenue of Rs 164 crores in FY25, up by 74 percent from its FY24 revenue of Rs 94 crores. It reported a net profit of Rs 47 crores in FY25, up by 113 percent, from its FY24 net profit of Rs 22 crores. It has been maintaining a strong operating margin of 50,51, and 59 percent in FY23, FY24, and FY25 respectively.
3. Anand Rathi Wealth
Anand Rathi Wealth Limited provides a series of financial and insurance products and services in India. The organization distributes mutual funds, structured products, and investment products. It also provides a technology-powered platform for financial advisors, complete with client reporting tools, client engagement tools, and online transactions.
It reported a revenue of Rs 939 crores in FY25, up by 25 percent, from its FY24 revenue of Rs 752 crores. It reported a net profit of Rs 301 crores in FY25, up by 33 percent, from its FY24 net profit of Rs 226 crores. It has been maintaining a strong operating margin of 45,44, and 43 percent in FY23, FY24, and FY25 respectively.
Written by Satyajeet Mukherjee
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