EBITDA Margin

EBITDA Margin is a profitability metric that expresses EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) as a percentage of total revenue, measuring the proportion of each rupee of revenue that the company retains as operating earnings before the impact of financing structure, tax environment, and non-cash charges. It is calculated as: EBITDA Margin = (EBITDA ÷ Revenue) × 100. EBITDA Margin is widely used in Indian equity analysis because it enables meaningful comparison of operating profitability across companies with different capital structures (debt levels affect interest expense) and different depreciation policies (capital-intensive versus asset-light businesses). It is the preferred profitability metric in capital-intensive sectors such as telecom, cement, metals, and infrastructure. A rising EBITDA Margin signals improving operational efficiency or pricing power, while a declining margin suggests cost pressures, competitive intensity, or operating leverage working against the company. Analysts track EBITDA Margin trends across quarters to assess whether a company's business model is improving or deteriorating in fundamental terms.