Mahanagar GasNSE:MGL -1.79%97 Operating Margin % is 7.49% as of Mar. 2026, which is 71% below its 10-year median of 26.27. GuruFocus rates NSE:MGL with a GF Score™ of 97/100 and a GF Value™ of ₹1,552.53 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 499 Utilities - Regulated companies, Mahanagar Gas ranks worse than 56.11% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Mahanagar Gas's Operating Income for the
three
months ended in Mar. 2026 was ₹1,537 Mil. Mahanagar Gas's Revenue for the
three
months ended in Mar. 2026 was ₹20,521 Mil. Therefore, Mahanagar Gas's Operating Margin % for the quarter that ended in Mar. 2026 was 7.49%.
Warning Sign:
Mahanagar Gas Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14.3%.
The historical rank and industry rank for Mahanagar Gas's Operating Margin % or its related term are showing as below:
NSE:MGL'
s Operating Margin % Range Over the Past 10 Years
Min: 12.62 Med: 26.27 Max: 36.03
Current: 12.62
NSE:MGL's Operating Margin % is ranked worse than 56.11% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs NSE:MGL: 12.62
Mahanagar Gas's 5-Year Average Operating Margin % Growth Rate was -14.30% per year.
Mahanagar Gas's Operating Income for the
three
months ended in Mar. 2026 was ₹1,537 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹10,407 Mil.
Mahanagar Gas (NSE:MGL) 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.
Mahanagar Gas Operating Margin % Related Terms
Mahanagar Gas Operating Margin % Historical Data
* Premium members only.
The historical data trend for Mahanagar Gas'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:MGL vs ATO, NI, UGI: Operating Margin % Comparison
For the Utilities - Regulated Gas subindustry, Mahanagar Gas'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.
Mahanagar Gas Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Mahanagar Gas's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mahanagar Gas'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.
Mahanagar Gas'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.
Mahanagar Gas (NSE:MGL) has a Operating Margin % of 7.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mahanagar Gas and its competitors. This is 71% below median its historical median of 26.27. Over the past decade, Mahanagar Gas' Operating Margin % has ranged from 12.62 to 36.03. According to the industry distribution chart, Mahanagar Gas ranks #280 out of 499 companies in the Utilities - Regulated industry, placing it in the top 56.1%.
Is Mahanagar Gas' Operating Margin % too high?
Mahanagar Gas' current Operating Margin % of 7.49% is 71% below median its 10-year median of 26.27. Over the past 10 years, this metric has ranged from a low of 12.62 to a high of 36.03. The Utilities - Regulated industry median Operating Margin % is 14.97. Mahanagar Gas' value of 7.49% is 50% below this industry median. Based on the distribution chart, Mahanagar Gas ranks #280 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Mahanagar Gas has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mahanagar Gas' Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Mahanagar Gas ranks #280 out of 499 companies for Operating Margin %. This places Mahanagar Gas in the lower half of its industry. The industry median Operating Margin % is 14.97. Mahanagar Gas' value of 7.49% is 50% below this benchmark. Historically, Mahanagar Gas' own Operating Margin % has ranged from 12.62 to 36.03 over the past decade. While the company's 10-year median is 26.27 vs. the industry median of 14.97, Mahanagar Gas 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Mahanagar Gas's current Operating Margin % of 7.49% is 50% 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 Mahanagar Gas and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahanagar Gas's current Operating Margin % is 7.49%, which is 71% below median its own 10-year median of 26.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mahanagar Gas stock overvalued right now?
Based on GuruFocus' analysis, Mahanagar Gas (NSE:MGL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,552.53, compared to a current price of ₹1,174.60 — trading 24.3% below its estimated fair value. The current Operating Margin % is 7.49%, which is 71% below median its 10-year median of 26.27 and 50% below the Utilities - Regulated industry median of 14.97. Mahanagar Gas' overall GF Score™ is 97/100 with 5 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 Mahanagar Gas (NSE:MGL), the current Operating Margin % is 7.49% 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 Mahanagar Gas (NSE:MGL) Overvalued in 2026?
Based on GuruFocus' analysis, Mahanagar Gas stock appears to be undervalued.
The current stock price of ₹1,174.60 is trading 24.3% below its estimated GF Value™ of ₹1,552.53.
GuruFocus considers Mahanagar Gas to be Modestly Undervalued.
Key valuation signals for NSE:MGL:
Operating Margin %: 7.49% (71% below median its 10-year median of 26.27)
GF Value™: ₹1,552.53 vs. price of ₹1,174.60 (24.3% below fair value)
Industry Position: 50% below the Utilities - Regulated median (#280 of 499)
No single metric tells the full story. See the NSE:MGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mahanagar Gas Ltd is an India-based natural gas distribution company. It distributes natural gas through the City Gas Distribution network of pipelines. It distributes compressed natural gas (CNG) for use in vehicles and piped natural gas (PNG) for domestic household, commercial, and industrial use, and to transport sector customers as well. The company operates under the business segment of the sale of natural gas. Its business operations are principally carried out in India. The company generates revenue by selling natural gas, of which the sale of CNG accounts majorly for the total gas sales revenue.
97GF Score
Get the complete analysis for NSE:MGL
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:MGL has been successfully added to your 
