Castrol IndiaBOM:500870 -0.40%75 Operating Margin % is 19.52% as of Mar. 2026, which is 19% below its 10-year median of 24.16. GuruFocus rates BOM:500870 with a GF Score™ of 75/100 and a GF Value™ of ₹216.19 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 919 Oil & Gas companies, Castrol India ranks better than 76.06% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Castrol India's Operating Income for the
three
months ended in Mar. 2026 was ₹3,016 Mil. Castrol India's Revenue for the
three
months ended in Mar. 2026 was ₹15,452 Mil. Therefore, Castrol India's Operating Margin % for the quarter that ended in Mar. 2026 was 19.52%.
Warning Sign:
Castrol India Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for Castrol India's Operating Margin % or its related term are showing as below:
BOM:500870'
s Operating Margin % Range Over the Past 10 Years
Min: 21.65 Med: 24.16 Max: 29.2
Current: 21.65
BOM:500870's Operating Margin % is ranked better than 76.06% of 919
companies
in the Oil & Gas industry
Industry Median: 6.85
vs BOM:500870: 21.65
Castrol India's 5-Year Average Operating Margin % Growth Rate was -2.20% per year.
Castrol India's Operating Income for the
three
months ended in Mar. 2026 was ₹3,016 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹12,655 Mil.
Castrol India (BOM:500870) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Castrol India Operating Margin % Related Terms
Castrol India Operating Margin % Historical Data
* Premium members only.
The historical data trend for Castrol India's Operating 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.
BOM:500870 vs VLO, MPC, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Castrol India's Operating Margin %, along with its competitors' market caps and Operating 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.
Castrol India Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Castrol India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Castrol India's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Castrol India's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Castrol India (BOM:500870) has a Operating Margin % of 19.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Castrol India and its competitors. This is 19% below median its historical median of 24.16. Over the past decade, Castrol India's Operating Margin % has ranged from 21.65 to 29.20. According to the industry distribution chart, Castrol India ranks #220 out of 919 companies in the Oil & Gas industry, placing it in the top 23.9%.
Is Castrol India's Operating Margin % too high?
Castrol India's current Operating Margin % of 19.52% is 19% below median its 10-year median of 24.16. Over the past 10 years, this metric has ranged from a low of 21.65 to a high of 29.20. The Oil & Gas industry median Operating Margin % is 6.85. Castrol India's value of 19.52% is 185% above this industry median. Based on the distribution chart, Castrol India ranks #220 out of 919 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Castrol India has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Castrol India's Operating Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Castrol India ranks #220 out of 919 companies for Operating Margin %. This places Castrol India in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.85. Castrol India's value of 19.52% is 185% above this benchmark. Historically, Castrol India's own Operating Margin % has ranged from 21.65 to 29.20 over the past decade. While the company's 10-year median is 24.16 vs. the industry median of 6.85, Castrol India 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 Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.85, based on 919 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Castrol India's current Operating Margin % of 19.52% is 185% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Castrol India and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Castrol India's current Operating Margin % is 19.52%, which is 19% below median its own 10-year median of 24.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Castrol India stock overvalued right now?
Based on GuruFocus' analysis, Castrol India (BOM:500870) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹216.19, compared to a current price of ₹184.45 — trading 14.7% below its estimated fair value. The current Operating Margin % is 19.52%, which is 19% below median its 10-year median of 24.16 and 185% above the Oil & Gas industry median of 6.85. Castrol India's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Castrol India (BOM:500870), the current Operating Margin % is 19.52% 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 Castrol India (BOM:500870) Overvalued in 2026?
Based on GuruFocus' analysis, Castrol India stock appears to be undervalued.
The current stock price of ₹184.45 is trading 14.7% below its estimated GF Value™ of ₹216.19.
GuruFocus considers Castrol India to be Modestly Undervalued.
Key valuation signals for BOM:500870:
Operating Margin %: 19.52% (19% below median its 10-year median of 24.16)
GF Value™: ₹216.19 vs. price of ₹184.45 (14.7% below fair value)
Industry Position: 185% above the Oil & Gas median (#220 of 919)
No single metric tells the full story. See the BOM:500870 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Castrol India Ltd is principally engaged in the manufacturing and marketing of automotive and industrial lubricants and related services. It sells its products under the Castrol brand. The company's reportable business segment consists of a single segment: lubricants. The majority of all revenue comes from India.
75GF Score
Get the complete analysis for BOM:500870
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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