Net Profit Margin
The percentage of revenue that becomes bottom-line profit.
Net Margin = Net Profit ÷ Revenue × 100
Quick Net Profit Margin calculator
₹Cr
₹Cr
Net Profit Margin
13.33%
Net Margin = Net Profit ÷ Revenue × 100
What is the Net Profit Margin?
Net profit margin measures how much of every rupee of sales becomes net profit after all expenses — costs, interest and tax. It is the ultimate profitability yardstick.
How to interpret it
A high, stable net margin reflects a well-run, competitive business. Compare within a sector: a 5% margin may be excellent in retail and poor in software.
What’s a good Net Profit Margin?
> 15%
Strong
5–15%
Average
< 5%
Thin
Industry-dependent. Above 15% is strong for most sectors; single digits are normal for high-volume, low-margin businesses.
Common mistakes
- Comparing net margin across industries with different cost structures.
- Not adjusting for one-off gains/losses that distort a single period.
See it on a real stock
This ratio computed for any listed company.
Related ratios
All financial ratios →For educational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.