Esab IndiaNSE:ESABINDIA -0.03%92 Operating Margin % is 14.74% as of Mar. 2026, which is 20% above its 10-year median of 12.31. GuruFocus rates NSE:ESABINDIA with a GF Score™ of 92/100 and a GF Value™ of ₹6,552.40 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 3,038 Industrial Products companies, Esab India ranks better than 86.5% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Esab India's Operating Income for the
three
months ended in Mar. 2026 was ₹583 Mil. Esab India's Revenue for the
three
months ended in Mar. 2026 was ₹3,958 Mil. Therefore, Esab India's Operating Margin % for the quarter that ended in Mar. 2026 was 14.74%.
Good Sign:
Esab India Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Esab India's Operating Margin % or its related term are showing as below:
NSE:ESABINDIA'
s Operating Margin % Range Over the Past 10 Years
Min: 7.43 Med: 12.31 Max: 17.43
Current: 16.76
NSE:ESABINDIA's Operating Margin % is ranked better than 86.5% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs NSE:ESABINDIA: 16.76
Esab India's 5-Year Average Operating Margin % Growth Rate was 9.90% per year.
Esab India's Operating Income for the
three
months ended in Mar. 2026 was ₹583 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹2,528 Mil.
Esab India (NSE:ESABINDIA) 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.
Esab India Operating Margin % Related Terms
Esab India Operating Margin % Historical Data
* Premium members only.
The historical data trend for Esab 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.
NSE:ESABINDIA vs SNA, RBC, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, Esab 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.
Esab India Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Esab India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Esab 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.
Esab India'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.
Esab India (NSE:ESABINDIA) has a Operating Margin % of 14.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Esab India and its competitors. This is 20% above median its historical median of 12.31. Over the past decade, Esab India's Operating Margin % has ranged from 7.43 to 17.43. According to the industry distribution chart, Esab India ranks #410 out of 3038 companies in the Industrial Products industry, placing it in the top 13.5%.
Is Esab India's Operating Margin % too high?
Esab India's current Operating Margin % of 14.74% is 20% above median its 10-year median of 12.31. Over the past 10 years, this metric has ranged from a low of 7.43 to a high of 17.43. The Industrial Products industry median Operating Margin % is 6.53. Esab India's value of 14.74% is 125.7% above this industry median. Based on the distribution chart, Esab India ranks #410 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Esab India has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Esab India's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Esab India ranks #410 out of 3038 companies for Operating Margin %. This places Esab India in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Esab India's value of 14.74% is 125.7% above this benchmark. Historically, Esab India's own Operating Margin % has ranged from 7.43 to 17.43 over the past decade. While the company's 10-year median is 12.31 vs. the industry median of 6.53, Esab India 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Esab India's current Operating Margin % of 14.74% is 125.7% 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 Esab India and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Esab India's current Operating Margin % is 14.74%, which is 20% above median its own 10-year median of 12.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Esab India stock overvalued right now?
Based on GuruFocus' analysis, Esab India (NSE:ESABINDIA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹6,552.40, compared to a current price of ₹5,760.00 — trading 12.1% below its estimated fair value. The current Operating Margin % is 14.74%, which is 20% above median its 10-year median of 12.31 and 125.7% above the Industrial Products industry median of 6.53. Esab India's overall GF Score™ is 92/100 with 1 warning sign 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 Esab India (NSE:ESABINDIA), the current Operating Margin % is 14.74% 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 Esab India (NSE:ESABINDIA) Overvalued in 2026?
Based on GuruFocus' analysis, Esab India stock appears to be undervalued.
The current stock price of ₹5,760.00 is trading 12.1% below its estimated GF Value™ of ₹6,552.40.
GuruFocus considers Esab India to be Modestly Undervalued.
Key valuation signals for NSE:ESABINDIA:
Operating Margin %: 14.74% (20% above median its 10-year median of 12.31)
GF Value™: ₹6,552.40 vs. price of ₹5,760.00 (12.1% below fair value)
Industry Position: 125.7% above the Industrial Products median (#410 of 3038)
No single metric tells the full story. See the NSE:ESABINDIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Esab India Ltd is engaged in the production of welding and cutting equipment and consumables. The company focuses on areas such as Manual welding and cutting equipment, Welding Consumables, Welding automation, Mechanized cutting systems, and others. It operates in the segment of fabrication technology. This includes manufacturing and selling of welding, cutting and allied products and also provides engineering, support, and consulting services. The company's brands include ESAB, Exaton, Gasarc, Victor, and Tweco among others. Geographically, the company derives its key revenue from the domestic market and the rest from overseas markets.
92GF Score
Get the complete analysis for NSE:ESABINDIA
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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