JSW SteelNSE:JSWSTEEL -0.02%87 Operating Margin % is 13.02% as of Mar. 2026, which is 9% below its 10-year median of 14.32. GuruFocus rates NSE:JSWSTEEL with a GF Score™ of 87/100 and a GF Value™ of ₹1,036.66 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 616 Steel companies, JSW Steel ranks better than 85.23% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. JSW Steel's Operating Income for the
three
months ended in Mar. 2026 was ₹64,860 Mil. JSW Steel's Revenue for the
three
months ended in Mar. 2026 was ₹497,980 Mil. Therefore, JSW Steel's Operating Margin % for the quarter that ended in Mar. 2026 was 13.02%.
Warning Sign:
JSW Steel Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14.9%.
The historical rank and industry rank for JSW Steel's Operating Margin % or its related term are showing as below:
NSE:JSWSTEEL'
s Operating Margin % Range Over the Past 10 Years
Min: 8.04 Med: 14.32 Max: 23.35
Current: 11.11
NSE:JSWSTEEL's Operating Margin % is ranked better than 85.23% of 616
companies
in the Steel industry
Industry Median: 3
vs NSE:JSWSTEEL: 11.11
JSW Steel's 5-Year Average Operating Margin % Growth Rate was -14.90% per year.
JSW Steel's Operating Income for the
three
months ended in Mar. 2026 was ₹64,860 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹202,200 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.
JSW Steel Operating Margin % Related Terms
JSW Steel Operating Margin % Historical Data
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The historical data trend for JSW 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.
NSE:JSWSTEEL vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, JSW 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.
JSW Steel Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, JSW Steel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where JSW 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.
JSW 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.
JSW Steel (NSE:JSWSTEEL) has a Operating Margin % of 13.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on JSW Steel and its competitors. This is near median its historical median of 14.32. Over the past decade, JSW Steel's Operating Margin % has ranged from 8.04 to 23.35. According to the industry distribution chart, JSW Steel ranks #91 out of 616 companies in the Steel industry, placing it in the top 14.8%.
Is JSW Steel's Operating Margin % too high?
JSW Steel's current Operating Margin % of 13.02% is near median its 10-year median of 14.32. Over the past 10 years, this metric has ranged from a low of 8.04 to a high of 23.35. The Steel industry median Operating Margin % is 3.00. JSW Steel's value of 13.02% is 334% above this industry median. Based on the distribution chart, JSW Steel ranks #91 out of 616 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, JSW Steel has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does JSW Steel's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, JSW Steel ranks #91 out of 616 companies for Operating Margin %. This places JSW Steel in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.00. JSW Steel's value of 13.02% is 334% above this benchmark. Historically, JSW Steel's own Operating Margin % has ranged from 8.04 to 23.35 over the past decade. While the company's 10-year median is 14.32 vs. the industry median of 3.00, JSW 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. JSW Steel's current Operating Margin % of 13.02% is 334% 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 JSW 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. JSW Steel's current Operating Margin % is 13.02%, which is near median its own 10-year median of 14.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is JSW Steel stock overvalued right now?
Based on GuruFocus' analysis, JSW Steel (NSE:JSWSTEEL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,036.66, compared to a current price of ₹1,231.00 — trading 18.7% above its estimated fair value. The current Operating Margin % is 13.02%, which is near median its 10-year median of 14.32 and 334% above the Steel industry median of 3.00. JSW Steel's overall GF Score™ is 87/100 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 JSW Steel (NSE:JSWSTEEL), the current Operating Margin % is 13.02% 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 JSW Steel (NSE:JSWSTEEL) Overvalued in 2026?
Based on GuruFocus' analysis, JSW Steel stock appears to be overvalued.
The current stock price of ₹1,231.00 is trading 18.7% above its estimated GF Value™ of ₹1,036.66.
GuruFocus considers JSW Steel to be Modestly Overvalued.
Key valuation signals for NSE:JSWSTEEL:
Operating Margin %: 13.02% (near median its 10-year median of 14.32)
GF Value™: ₹1,036.66 vs. price of ₹1,231.00 (18.7% above fair value)
Industry Position: 334% above the Steel median (#91 of 616)
No single metric tells the full story. See the NSE:JSWSTEEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
JSW Steel Ltd is an India-based company that is engaged in the business of manufacturing and selling steel products. Its steel products include semis, hot-rolled steel, cold-rolled steel, galvanized steel, color-coated steel, and long products. Its flat steel products (including hot-rolled, cold-rolled, and galvanized products), which account for the majority of the company's steel volume, are used in Indian automotive, construction, infrastructure, engineering, and consumer durable industries. Its long products are used in the Indian construction, infrastructure, and automotive industries. The company generates the majority of its revenue from the Indian domestic market.
87GF 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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