RailTel of IndiaBOM:543265 -1.15%99 Operating Margin % is 9.25% as of Dec. 2025, which is 43% below its 10-year median of 16.15. GuruFocus rates BOM:543265 with a GF Score™ of 99/100 and a GF Value™ of ₹492.04 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 365 Telecommunication Services companies, RailTel of India ranks better than 51.23% on this metric.
RailTel Corporation of India Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.5%.
The historical rank and industry rank for RailTel of India's Operating Margin % or its related term are showing as below:
BOM:543265'
s Operating Margin % Range Over the Past 10 Years
Min: 9.79 Med: 16.15 Max: 19.69
Current: 9.79
BOM:543265's Operating Margin % is ranked better than 51.23% of 365
companies
in the Telecommunication Services industry
Industry Median: 9.72
vs BOM:543265: 9.79
RailTel of India's 5-Year Average Operating Margin % Growth Rate was -10.50% per year.
RailTel of India (BOM:543265) 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.
RailTel of India Operating Margin % Related Terms
RailTel of India Operating Margin % Historical Data
* Premium members only.
The historical data trend for RailTel of 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:543265 vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, RailTel of 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.
RailTel of India Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, RailTel of India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where RailTel of 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.
RailTel of India's Operating Margin % for the fiscal year that ended in Mar. 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.
RailTel of India (BOM:543265) has a Operating Margin % of 9.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on RailTel of India and its competitors. This is 43% below median its historical median of 16.15. Over the past decade, RailTel of India's Operating Margin % has ranged from 9.79 to 19.69. According to the industry distribution chart, RailTel of India ranks #178 out of 365 companies in the Telecommunication Services industry, placing it in the top 48.8%.
Is RailTel of India's Operating Margin % too high?
RailTel of India's current Operating Margin % of 9.25% is 43% below median its 10-year median of 16.15. Over the past 10 years, this metric has ranged from a low of 9.79 to a high of 19.69. The Telecommunication Services industry median Operating Margin % is 9.72. RailTel of India's value of 9.25% is 4.8% below this industry median. Based on the distribution chart, RailTel of India ranks #178 out of 365 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, RailTel of India has a GF Score™ of 99/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RailTel of India's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, RailTel of India ranks #178 out of 365 companies for Operating Margin %. This puts RailTel of India in the upper half of its industry. The industry median Operating Margin % is 9.72. RailTel of India's value of 9.25% is 4.8% below this benchmark. Historically, RailTel of India's own Operating Margin % has ranged from 9.79 to 19.69 over the past decade. While the company's 10-year median is 16.15 vs. the industry median of 9.72, RailTel of India has consistently been below 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.72, based on 365 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. RailTel of India's current Operating Margin % of 9.25% is 4.8% below 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 RailTel of India and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RailTel of India's current Operating Margin % is 9.25%, which is 43% below median its own 10-year median of 16.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RailTel of India stock overvalued right now?
Based on GuruFocus' analysis, RailTel of India (BOM:543265) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹492.04, compared to a current price of ₹313.90 — trading 36.2% below its estimated fair value. The current Operating Margin % is 9.25%, which is 43% below median its 10-year median of 16.15 and 4.8% below the Telecommunication Services industry median of 9.72. RailTel of India's overall GF Score™ is 99/100 with 3 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 RailTel of India (BOM:543265), the current Operating Margin % is 9.25% as of Dec. 2025. 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 RailTel of India (BOM:543265) Overvalued in 2026?
Based on GuruFocus' analysis, RailTel of India stock appears to be undervalued.
The current stock price of ₹313.90 is trading 36.2% below its estimated GF Value™ of ₹492.04.
GuruFocus considers RailTel of India to be Significantly Undervalued.
Key valuation signals for BOM:543265:
Operating Margin %: 9.25% (43% below median its 10-year median of 16.15)
GF Value™: ₹492.04 vs. price of ₹313.90 (36.2% below fair value)
Industry Position: 4.8% below the Telecommunication Services median (#178 of 365)
No single metric tells the full story. See the BOM:543265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RailTel Corporation of India Ltd is a neutral telecom infrastructure provider in the country. It owns a pan-India optic fiber network on an exclusive Right of Way along the Railway track. The company's operating segment includes Telecom Services and Project Work services. It generates maximum revenue from the Telecom Services segment. The telecom services segment of the company provides services such as Managed Data Services; Leased Lines; Virtual Private Networks; Internet Leased Lines; Data Centre; Tower collocation, Rack and space, and NLD for voice carriage, and the project work services involve the following projects; National Optical Fiber Networks, Telecom and IT services related projects, and Enterprise specific IT & ITES Projects.
99GF Score
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