Scan Steels (BOM:511672) Operating Margin %: 3.57% (As of Mar. 2026) — 13% Below Median


BOM:511672 Scan Steels Ltd BOM:511672
65 GF Score
Price ₹47.47
GF Value ₹37.63
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Scan Steels Operating Margin %?

Scan Steels BOM:511672 +11.43% 65 Operating Margin % is 3.57% as of Mar. 2026, which is 13% below its 10-year median of 4.08. GuruFocus rates BOM:511672 with a GF Score™ of 65/100 and a GF Value™ of ₹37.63 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 611 Steel companies, Scan Steels ranks better than 57.28% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Scan Steels's Operating Income for the three months ended in Mar. 2026 was ₹100 Mil. Scan Steels's Revenue for the three months ended in Mar. 2026 was ₹2,817 Mil. Therefore, Scan Steels's Operating Margin % for the quarter that ended in Mar. 2026 was 3.57%.

Warning Sign:

Scan Steels Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -13.5%.

The historical rank and industry rank for Scan Steels's Operating Margin % or its related term are showing as below:

BOM:511672' s Operating Margin % Range Over the Past 10 Years
Min: -1   Med: 4.08   Max: 8.04
Current: 4.03


BOM:511672's Operating Margin % is ranked better than
57.28% of 611 companies
in the Steel industry
Industry Median: 3.01 vs BOM:511672: 4.03

Scan Steels's 5-Year Average Operating Margin % Growth Rate was -13.50% per year.

Scan Steels's Operating Income for the three months ended in Mar. 2026 was ₹100 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹338 Mil.


Scan Steels  (BOM:511672) 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 Nokia’s 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.


Scan Steels Operating Margin % Related Terms


Scan Steels Operating Margin % Historical Data

* Premium members only.

The historical data trend for Scan Steels'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.

Scan Steels Operating Margin % Chart

Scan Steels Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.32 3.28 3.38 3.76 4.04

Scan Steels Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.08 6.70 1.31 3.37 3.57

BOM:511672 vs NUE, STLD, RS: Operating Margin % Comparison

For the Steel subindustry, Scan Steels'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.


Scan Steels Operating Margin % vs Steel Industry

For the Steel industry and Basic Materials sector, Scan Steels's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Scan Steels's Operating Margin % falls into.


BOM:511672
65GF Score
Scan Steels Ltd BOM:511672
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Scan Steels Operating Margin % Calculation

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.

Scan Steels's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=338.285 / 8382.563
=4.04 %

Scan Steels's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=100.469 / 2816.607
=3.57 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 3.57% mean?
Scan Steels (BOM:511672) has a Operating Margin % of 3.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Scan Steels and its competitors. This is 13% below median its historical median of 4.08. According to the industry distribution chart, Scan Steels ranks #261 out of 611 companies in the Steel industry, placing it in the top 42.7%.
Is Scan Steels' Operating Margin % too high?
Scan Steels' current Operating Margin % of 3.57% is 13% below median its 10-year median of 4.08. The Steel industry median Operating Margin % is 3.01. Scan Steels' value of 3.57% is 18.6% above this industry median. Based on the distribution chart, Scan Steels ranks #261 out of 611 companies in the Steel industry, which is above the industry midpoint. Overall, Scan Steels has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Scan Steels' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Scan Steels ranks #261 out of 611 companies for Operating Margin %. This puts Scan Steels in the upper half of its industry. The industry median Operating Margin % is 3.01. Scan Steels' value of 3.57% is 18.6% above this benchmark. While the company's 10-year median is 4.08 vs. the industry median of 3.01, Scan 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 Operating Margin % for a Steel company?
The median Operating Margin % among Steel companies is 3.01, based on 611 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. Scan Steels's current Operating Margin % of 3.57% is 18.6% 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 Scan Steels and its competitors. For the Steel industry, the median Operating Margin % is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scan Steels's current Operating Margin % is 3.57%, which is 13% below median its own 10-year median of 4.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scan Steels stock overvalued right now?
Based on GuruFocus' analysis, Scan Steels (BOM:511672) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹37.63, compared to a current price of ₹47.47 — trading 26.1% above its estimated fair value. The current Operating Margin % is 3.57%, which is 13% below median its 10-year median of 4.08 and 18.6% above the Steel industry median of 3.01. Scan Steels' overall GF Score™ is 65/100 with 8 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 Scan Steels (BOM:511672), the current Operating Margin % is 3.57% 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 Scan Steels (BOM:511672) Overvalued in 2026?

Based on GuruFocus' analysis, Scan Steels stock appears to be overvalued. The current stock price of ₹47.47 is trading 26.1% above its estimated GF Value™ of ₹37.63. GuruFocus considers Scan Steels to be Modestly Overvalued.

Key valuation signals for BOM:511672:

  • Operating Margin %: 3.57% (13% below median its 10-year median of 4.08)
  • GF Value™: ₹37.63 vs. price of ₹47.47 (26.1% above fair value)
  • GF Score™: 65/100 with 8 warning signs
  • Industry Position: 18.6% above the Steel median (#261 of 611)

No single metric tells the full story. See the BOM:511672 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Scan Steels Business Description

Address Magnetics Chowk, 2nd Floor, Plot No. 516/1723/3991, Trishana Nirmalya, Patia, Bhubaneswar, OR, IND, 751024
Scan Steels Ltd is an Indian-based iron and steel company. It is engaged in the manufacturing of steel products and in the generation of power for captive consumption. The company operates through a single segment, which is Steel Manufacturing. Its products include Shrishtii TMT, MS Billets, Shrishtii Roofing, Shrishtii Structural, and Fly Ash Bricks.
65GF Score

Get the complete analysis for BOM:511672

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹47.47
Price
₹37.63
GF Value