Vedanta Iron and Steel (BOM:544784) Operating Margin %: 2.25% (As of Mar. 2026) — 38% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BOM:544784 Vedanta Iron and Steel Ltd BOM:544784
2 GF Score
Price ₹39.08
! 7 Warning Signs
View Full Analysis

What is Vedanta Iron and Steel Operating Margin %?

Vedanta Iron and Steel BOM:544784 +0.67% 2 Operating Margin % is 2.25% as of Mar. 2026, which is 38% below its 10-year median of 3.62. GuruFocus rates BOM:544784 with a GF Score™ of 2/100. The stock has 7 warning signs investors should review. Among 612 Steel companies, Vedanta Iron and Steel ranks worse than 57.35% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Vedanta Iron and Steel's Operating Income for the six months ended in Mar. 2026 was ₹3,000 Mil. Vedanta Iron and Steel's Revenue for the six months ended in Mar. 2026 was ₹133,410 Mil. Therefore, Vedanta Iron and Steel's Operating Margin % for the quarter that ended in Mar. 2026 was 2.25%.

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

BOM:544784' s Operating Margin % Range Over the Past 10 Years
Min: 2.25   Med: 3.62   Max: 4.98
Current: 2.25


BOM:544784's Operating Margin % is ranked worse than
57.35% of 612 companies
in the Steel industry
Industry Median: 3.015 vs BOM:544784: 2.25

Vedanta Iron and Steel's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Vedanta Iron and Steel's Operating Income for the six months ended in Mar. 2026 was ₹3,000 Mil.


Vedanta Iron and Steel  (BOM:544784) 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.


Vedanta Iron and Steel Operating Margin % Related Terms


Vedanta Iron and Steel Operating Margin % Historical Data

* Premium members only.

The historical data trend for Vedanta Iron and Steel'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.

Vedanta Iron and Steel Operating Margin % Chart

Vedanta Iron and Steel Annual Data
Trend Mar24 Mar25 Mar26
Operating Margin %
0.00 4.98 2.25

Vedanta Iron and Steel Semi-Annual Data
Mar24 Mar25 Mar26
Operating Margin % 0.00 4.98 2.25

BOM:544784 vs NUE, STLD, RS: Operating Margin % Comparison

For the Steel subindustry, Vedanta Iron and Steel'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.


Vedanta Iron and Steel Operating Margin % vs Steel Industry

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

* The bar in red indicates where Vedanta Iron and Steel's Operating Margin % falls into.


BOM:544784
2GF Score
Vedanta Iron and Steel Ltd BOM:544784
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Vedanta Iron and Steel 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.

Vedanta Iron and Steel'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 )
=3000 / 133410
=2.25 %

Vedanta Iron and Steel'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 )
=3000 / 133410
=2.25 %

* 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 2.25% mean?
Vedanta Iron and Steel (BOM:544784) has a Operating Margin % of 2.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vedanta Iron and Steel and its competitors. This is 38% below median its historical median of 3.62. Over the past decade, Vedanta Iron and Steel's Operating Margin % has ranged from 2.25 to 4.98. According to the industry distribution chart, Vedanta Iron and Steel ranks #351 out of 612 companies in the Steel industry, placing it in the top 57.4%.
Is Vedanta Iron and Steel's Operating Margin % too high?
Vedanta Iron and Steel's current Operating Margin % of 2.25% is 38% below median its 10-year median of 3.62. Over the past 10 years, this metric has ranged from a low of 2.25 to a high of 4.98. The Steel industry median Operating Margin % is 3.02. Vedanta Iron and Steel's value of 2.25% is 25.4% below this industry median. Based on the distribution chart, Vedanta Iron and Steel ranks #351 out of 612 companies in the Steel industry, which is below the industry midpoint. Overall, Vedanta Iron and Steel has a GF Score™ of 2/100, reflecting its overall financial health beyond just this single metric.
How does Vedanta Iron and Steel's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Vedanta Iron and Steel ranks #351 out of 612 companies for Operating Margin %. This places Vedanta Iron and Steel in the lower half of its industry. The industry median Operating Margin % is 3.02. Vedanta Iron and Steel's value of 2.25% is 25.4% below this benchmark. Historically, Vedanta Iron and Steel's own Operating Margin % has ranged from 2.25 to 4.98 over the past decade. While the company's 10-year median is 3.62 vs. the industry median of 3.02, Vedanta Iron and Steel 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 Steel company?
The median Operating Margin % among Steel companies is 3.02, based on 612 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. Vedanta Iron and Steel's current Operating Margin % of 2.25% is 25.4% 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 Vedanta Iron and Steel and its competitors. For the Steel industry, the median Operating Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vedanta Iron and Steel's current Operating Margin % is 2.25%, which is 38% below median its own 10-year median of 3.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vedanta Iron and Steel stock overvalued right now?
Vedanta Iron and Steel (BOM:544784) has a current Operating Margin % of 2.25%. The current Operating Margin % is 2.25%, which is 38% below median its 10-year median of 3.62 and 25.4% below the Steel industry median of 3.02. Vedanta Iron and Steel's overall GF Score™ is 2/100 with 7 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 Vedanta Iron and Steel (BOM:544784), the current Operating Margin % is 2.25% 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.

Vedanta Iron and Steel Business Description

Other Exchanges VISL:India
Address Sesa Ghor, 20 EDC Complex, Patto Panaji, GA, IND, 403 001
Vedanta Iron and Steel Ltd is a ferrous-resource company supplying the materials that underpin modern economies. Its products are Iron Ore, Met Coke, Pig Iron, and Steel & VAP. Along with its subsidiary, it engaged in supplying essential materials that power infrastructure, manufacturing, and nation-building across geographies. Its operations span India and Africa. The group focuses on iron ore exploration, mining, and processing in India and West Africa, alongside the production of high-quality steel, wire rods, TMT bars, pig iron, Ductile Iron (DI) Pipes, Ferro-silicon, cement, and metallurgical coke.
2GF Score

Get the complete analysis for BOM:544784

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

₹39.08
Price