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Indian OilBOM:530965 -0.88%73 Operating Margin % is 9.56% as of Mar. 2026, which is 37% above its 10-year median of 6.99. GuruFocus rates BOM:530965 with a GF Score™ of 73/100 and a GF Value™ of ₹157.13 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 918 Oil & Gas companies, Indian Oil ranks better than 51.63% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Indian Oil's Operating Income for the
three
months ended in Mar. 2026 was ₹199,099 Mil. Indian Oil's Revenue for the
three
months ended in Mar. 2026 was ₹2,082,893 Mil. Therefore, Indian Oil's Operating Margin % for the quarter that ended in Mar. 2026 was 9.56%.
Warning Sign:
Indian Oil Corp Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7%.
The historical rank and industry rank for Indian Oil's Operating Margin % or its related term are showing as below:
BOM:530965'
s Operating Margin % Range Over the Past 10 Years
Min: 2.25 Med: 6.99 Max: 8.87
Current: 7.62
BOM:530965's Operating Margin % is ranked better than 51.63% of 918
companies
in the Oil & Gas industry
Industry Median: 7.11
vs BOM:530965: 7.62
Indian Oil's 5-Year Average Operating Margin % Growth Rate was -7.00% per year.
Indian Oil's Operating Income for the
three
months ended in Mar. 2026 was ₹199,099 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹597,771 Mil.
Indian Oil (BOM:530965) 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.
Indian Oil Operating Margin % Related Terms
Indian Oil Operating Margin % Historical Data
* Premium members only.
The historical data trend for Indian Oil'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:530965 vs MPC, VLO, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Indian Oil'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.
Indian Oil Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Indian Oil's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Indian Oil'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.
Indian Oil's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Indian Oil (BOM:530965) has a Operating Margin % of 9.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Indian Oil and its competitors. This is 37% above median its historical median of 6.99. Over the past decade, Indian Oil's Operating Margin % has ranged from 2.25 to 8.87. According to the industry distribution chart, Indian Oil ranks #444 out of 918 companies in the Oil & Gas industry, placing it in the top 48.4%.
Is Indian Oil's Operating Margin % too high?
Indian Oil's current Operating Margin % of 9.56% is 37% above median its 10-year median of 6.99. Over the past 10 years, this metric has ranged from a low of 2.25 to a high of 8.87. The Oil & Gas industry median Operating Margin % is 7.11. Indian Oil's value of 9.56% is 34.5% above this industry median. Based on the distribution chart, Indian Oil ranks #444 out of 918 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Indian Oil has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Oil's Operating Margin % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Indian Oil ranks #444 out of 918 companies for Operating Margin %. This puts Indian Oil in the upper half of its industry. The industry median Operating Margin % is 7.11. Indian Oil's value of 9.56% is 34.5% above this benchmark. Historically, Indian Oil's own Operating Margin % has ranged from 2.25 to 8.87 over the past decade. While the company's 10-year median is 6.99 vs. the industry median of 7.11, Indian Oil 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 7.11, based on 918 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. Indian Oil's current Operating Margin % of 9.56% is 34.5% 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 Indian Oil and its competitors. For the Oil & Gas industry, the median Operating Margin % is 7.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Oil's current Operating Margin % is 9.56%, which is 37% above median its own 10-year median of 6.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Oil stock overvalued right now?
Based on GuruFocus' analysis, Indian Oil (BOM:530965) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹157.13, compared to a current price of ₹140.05 — trading 10.9% below its estimated fair value. The current Operating Margin % is 9.56%, which is 37% above median its 10-year median of 6.99 and 34.5% above the Oil & Gas industry median of 7.11. Indian Oil's overall GF Score™ is 73/100 with 5 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 Indian Oil (BOM:530965), the current Operating Margin % is 9.56% 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 Indian Oil (BOM:530965) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Oil stock appears to be undervalued.
The current stock price of ₹140.05 is trading 10.9% below its estimated GF Value™ of ₹157.13.
GuruFocus considers Indian Oil to be Modestly Undervalued.
Key valuation signals for BOM:530965:
Operating Margin %: 9.56% (37% above median its 10-year median of 6.99)
GF Value™: ₹157.13 vs. price of ₹140.05 (10.9% below fair value)
Industry Position: 34.5% above the Oil & Gas median (#444 of 918)
No single metric tells the full story. See the BOM:530965 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Oil Corp Ltd conducts business across the entire hydrocarbon value chain, from refining, pipeline transportation and marketing, to exploration and production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and globalisation of downstream operations. The group is engaged in the following business segments: Sale of Petroleum Products, Sale of Petrochemicals, Sale of Gas, and the Other operating segment, which includes oil and gas exploration activities, explosives and cryogenic business, and windmill and solar power generation. The majority of its revenue is generated from the sale of petroleum products such as motor spirit, high speed diesel, liquified petroleum gas, aviation turbine fuel, and others. Geographically, it derives key revenue from India.
73GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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