Tata SteelLUX:TTSTE 72 Operating Margin % is 10.47% as of Mar. 2026, which is 3% above its 10-year median of 10.21. GuruFocus rates LUX:TTSTE with a GF Score™ of 72/100 and a GF Value™ of $16.46. The stock has 8 warning signs investors should review. Among 616 Steel companies, Tata Steel ranks better than 81.82% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Tata Steel's Operating Income for the
three
months ended in Mar. 2026 was $707 Mil. Tata Steel's Revenue for the
three
months ended in Mar. 2026 was $6,754 Mil. Therefore, Tata Steel's Operating Margin % for the quarter that ended in Mar. 2026 was 10.47%.
Warning Sign:
Tata Steel Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14.2%.
The historical rank and industry rank for Tata Steel's Operating Margin % or its related term are showing as below:
LUX:TTSTE'
s Operating Margin % Range Over the Past 10 Years
Min: 5.45 Med: 10.21 Max: 22.99
Current: 9.73
LUX:TTSTE's Operating Margin % is ranked better than 81.82% of 616
companies
in the Steel industry
Industry Median: 3
vs LUX:TTSTE: 9.73
Tata Steel's 5-Year Average Operating Margin % Growth Rate was -14.20% per year.
Tata Steel's Operating Income for the
three
months ended in Mar. 2026 was $707 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $2,504 Mil.
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.
Tata Steel Operating Margin % Related Terms
Tata Steel Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tata 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.
LUX:TTSTE vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Tata 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.
Tata Steel Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Tata Steel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tata Steel'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.
Tata Steel'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.
Tata Steel (LUX:TTSTE) has a Operating Margin % of 10.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tata Steel and its competitors. This is near median its historical median of 10.21. Over the past decade, Tata Steel's Operating Margin % has ranged from 5.45 to 22.99. According to the industry distribution chart, Tata Steel ranks #112 out of 616 companies in the Steel industry, placing it in the top 18.2%.
Is Tata Steel's Operating Margin % too high?
Tata Steel's current Operating Margin % of 10.47% is near median its 10-year median of 10.21. Over the past 10 years, this metric has ranged from a low of 5.45 to a high of 22.99. The Steel industry median Operating Margin % is 3.00. Tata Steel's value of 10.47% is 249% above this industry median. Based on the distribution chart, Tata Steel ranks #112 out of 616 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Tata Steel has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Tata Steel's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tata Steel ranks #112 out of 616 companies for Operating Margin %. This places Tata Steel in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.00. Tata Steel's value of 10.47% is 249% above this benchmark. Historically, Tata Steel's own Operating Margin % has ranged from 5.45 to 22.99 over the past decade. While the company's 10-year median is 10.21 vs. the industry median of 3.00, Tata Steel 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 3.00, based on 616 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. Tata Steel's current Operating Margin % of 10.47% is 249% 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 Tata Steel and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Steel's current Operating Margin % is 10.47%, which is near median its own 10-year median of 10.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Steel stock overvalued right now?
Tata Steel (LUX:TTSTE) has a current Operating Margin % of 10.47%. The stock's GF Value™ is $16.46, compared to a current price of $20.20 — trading 22.7% above its estimated fair value. The current Operating Margin % is 10.47%, which is near median its 10-year median of 10.21 and 249% above the Steel industry median of 3.00. Tata Steel's overall GF Score™ is 72/100 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 Tata Steel (LUX:TTSTE), the current Operating Margin % is 10.47% 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 Tata Steel (LUX:TTSTE) Overvalued in 2026?
Based on GuruFocus' analysis, Tata Steel stock appears to be overvalued.
The current stock price of $20.20 is trading 22.7% above its estimated GF Value™ of $16.46.
Key valuation signals for LUX:TTSTE:
Operating Margin %: 10.47% (near median its 10-year median of 10.21)
GF Value™: $16.46 vs. price of $20.20 (22.7% above fair value)
Industry Position: 249% above the Steel median (#112 of 616)
No single metric tells the full story. See the LUX:TTSTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strips. Its segments include Tata Steel India, Neelachal Ispat Nigam Limited, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and Rest of the world. It generates the majority of its revenue from the Tata Steel India segment.
72GF Score
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