Tata SteelLSE:TTST -3.19%77 Gross Margin % is 58.25% as of Mar. 2026, which is 21% above its 10-year median of 48.14. GuruFocus rates LSE:TTST with a GF Score™ of 77/100 and a GF Value™ of $17.01 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 594 Steel companies, Tata Steel ranks better than 97.14% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tata Steel's Gross Profit for the
three
months ended in Mar. 2026 was $3,934 Mil. Tata Steel's Revenue for the
three
months ended in Mar. 2026 was $6,754 Mil. Therefore, Tata Steel's Gross Margin % for the quarter that ended in Mar. 2026 was 58.25%.
Warning Sign:
Tata Steel Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Tata Steel's Gross Margin % or its related term are showing as below:
LSE:TTST'
s Gross Margin % Range Over the Past 10 Years
Min: 39.56 Med: 48.14 Max: 59.35
Current: 59.35
During the past 13 years, the highestGross Margin % of Tata Steel was 59.35%. The lowest was 39.56%. And the median was 48.14%.
LSE:TTST's Gross Margin % is ranked better than 97.14% of 594
companies
in the Steel industry
Industry Median: 12.61
vs LSE:TTST: 59.35
Tata Steel had a gross margin of 58.25% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tata Steel was -3.10% per year.
Tata Steel (LSE:TTST) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tata Steel had a gross margin of 58.25% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tata Steel Gross Margin % Related Terms
Tata Steel Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tata Steel's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:TTST vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Tata Steel's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tata Steel Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Tata Steel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tata Steel's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tata Steel (LSE:TTST) has a Gross Margin % of 58.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tata Steel and its competitors. This is 21% above median its historical median of 48.14. Over the past decade, Tata Steel's Gross Margin % has ranged from 39.56 to 59.35. According to the industry distribution chart, Tata Steel ranks #17 out of 594 companies in the Steel industry, placing it in the top 2.9%.
Is Tata Steel's Gross Margin % too high?
Tata Steel's current Gross Margin % of 58.25% is 21% above median its 10-year median of 48.14. Over the past 10 years, this metric has ranged from a low of 39.56 to a high of 59.35. The Steel industry median Gross Margin % is 12.61. Tata Steel's value of 58.25% is 361.9% above this industry median. Based on the distribution chart, Tata Steel ranks #17 out of 594 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Tata Steel has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tata Steel's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tata Steel ranks #17 out of 594 companies for Gross Margin %. This places Tata Steel in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.61. Tata Steel's value of 58.25% is 361.9% above this benchmark. Historically, Tata Steel's own Gross Margin % has ranged from 39.56 to 59.35 over the past decade. While the company's 10-year median is 48.14 vs. the industry median of 12.61, Tata Steel has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.61, based on 594 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Steel's current Gross Margin % of 58.25% is 361.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tata Steel and its competitors. For the Steel industry, the median Gross Margin % is 12.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Steel's current Gross Margin % is 58.25%, which is 21% above median its own 10-year median of 48.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Steel stock overvalued right now?
Based on GuruFocus' analysis, Tata Steel (LSE:TTST) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.01, compared to a current price of $19.75 — trading 16.1% above its estimated fair value. The current Gross Margin % is 58.25%, which is 21% above median its 10-year median of 48.14 and 361.9% above the Steel industry median of 12.61. Tata Steel's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tata Steel (LSE:TTST), the current Gross Margin % is 58.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tata Steel (LSE:TTST) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Steel stock appears to be overvalued.
The current stock price of $19.75 is trading 16.1% above its estimated GF Value™ of $17.01.
GuruFocus considers Tata Steel to be Modestly Overvalued.
Key valuation signals for LSE:TTST:
Gross Margin %: 58.25% (21% above median its 10-year median of 48.14)
GF Value™: $17.01 vs. price of $19.75 (16.1% above fair value)
Industry Position: 361.9% above the Steel median (#17 of 594)
No single metric tells the full story. See the LSE:TTST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strips. Its segments include Tata Steel India, Neelachal Ispat Nigam Limited, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and Rest of the world. It generates the majority of its revenue from the Tata Steel India segment.
77GF Score
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