EBITDA margin

EBITDA divided by revenue. Widely quoted, particularly in capital-heavy sectors where depreciation policies differ enough to make operating margin hard to compare.

An exporter at ₹1,340 crore on ₹4,800 crore runs 27.9%.

Its usefulness is in cross-company comparison within a capital-intensive sector, where two firms with identical operations but different asset ages report very different operating margins for accounting reasons alone.

Its danger is that a high margin here can coexist with no free cash flow at all, if the capital spending needed to sustain the business consumes everything the trading generates. Telecom operators spent two decades demonstrating this.

Pair it with capital expenditure to revenue, always.