Vardhman Special SteelsNSE:VSSL -0.58%75 Gross Margin % is 41.07% as of Mar. 2026, which is 93% above its 10-year median of 21.28. GuruFocus rates NSE:VSSL with a GF Score™ of 75/100 and a GF Value™ of ₹224.05 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 598 Steel companies, Vardhman Special Steels ranks better than 91.3% on this metric.
NSE:VSSL's Gross Margin % is ranked better than 91.3% of 598
companies
in the Steel industry
Industry Median: 12.61
vs NSE:VSSL: 40.95
Vardhman Special Steels had a gross margin of 41.07% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Vardhman Special Steels was 12.80% per year.
Vardhman Special Steels (NSE:VSSL) 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
Vardhman Special Steels had a gross margin of 41.07% 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.
Vardhman Special Steels Gross Margin % Related Terms
Vardhman Special Steels Gross Margin % Historical Data
* 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.
NSE:VSSL vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Vardhman Special Steels'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.
Vardhman Special Steels Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Vardhman Special Steels's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vardhman Special Steels'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.
Vardhman Special Steels (NSE:VSSL) has a Gross Margin % of 41.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Vardhman Special Steels and its competitors. This is 93% above median its historical median of 21.28. Over the past decade, Vardhman Special Steels' Gross Margin % has ranged from 13.64 to 40.95. According to the industry distribution chart, Vardhman Special Steels ranks #52 out of 598 companies in the Steel industry, placing it in the top 8.7%.
Is Vardhman Special Steels' Gross Margin % too high?
Vardhman Special Steels' current Gross Margin % of 41.07% is 93% above median its 10-year median of 21.28. Over the past 10 years, this metric has ranged from a low of 13.64 to a high of 40.95. The Steel industry median Gross Margin % is 12.61. Vardhman Special Steels' value of 41.07% is 225.7% above this industry median. Based on the distribution chart, Vardhman Special Steels ranks #52 out of 598 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Vardhman Special Steels has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Vardhman Special Steels ranks #52 out of 598 companies for Gross Margin %. This places Vardhman Special Steels in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.61. Vardhman Special Steels' value of 41.07% is 225.7% above this benchmark. Historically, Vardhman Special Steels' own Gross Margin % has ranged from 13.64 to 40.95 over the past decade. While the company's 10-year median is 21.28 vs. the industry median of 12.61, Vardhman Special Steels 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 598 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. Vardhman Special Steels's current Gross Margin % of 41.07% is 225.7% 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 Vardhman Special Steels 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. Vardhman Special Steels's current Gross Margin % is 41.07%, which is 93% above median its own 10-year median of 21.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Special Steels stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Special Steels (NSE:VSSL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹224.05, compared to a current price of ₹282.90 — trading 26.3% above its estimated fair value. The current Gross Margin % is 41.07%, which is 93% above median its 10-year median of 21.28 and 225.7% above the Steel industry median of 12.61. Vardhman Special Steels' overall GF Score™ is 75/100 with 7 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 Vardhman Special Steels (NSE:VSSL), the current Gross Margin % is 41.07% 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 Vardhman Special Steels (NSE:VSSL) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Special Steels stock appears to be overvalued.
The current stock price of ₹282.90 is trading 26.3% above its estimated GF Value™ of ₹224.05.
GuruFocus considers Vardhman Special Steels to be Modestly Overvalued.
Key valuation signals for NSE:VSSL:
Gross Margin %: 41.07% (93% above median its 10-year median of 21.28)
GF Value™: ₹224.05 vs. price of ₹282.90 (26.3% above fair value)
Industry Position: 225.7% above the Steel median (#52 of 598)
No single metric tells the full story. See the NSE:VSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India and also has a presence outside India.
75GF Score
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