Variant Perception Capital

Variant Perception Capital

Margin Expansion: The major driver of share price

Every basis points counts

Variant Perception Capital's avatar
Variant Perception Capital
Jun 04, 2025
∙ Paid

Investors often chase revenue growth, but seasoned ones know the real alpha lies in expanding margins. When companies improve how much they retain from each rupee of sales, profits can grow disproportionately. Margin expansion usually comes from -

  1. Better product mix

  2. Backward integration

  3. More technology use and supply chain optimisation

  4. Operating leverage

Imp…

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