Oil IndiaNSE:OIL -1.47%89 Operating Margin % is 27.78% as of Mar. 2026, which is 13% below its 10-year median of 32.06. GuruFocus rates NSE:OIL with a GF Score™ of 89/100 and a GF Value™ of ₹480.45 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 916 Oil & Gas companies, Oil India ranks better than 77.62% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Oil India's Operating Income for the
three
months ended in Mar. 2026 was ₹25,818 Mil. Oil India's Revenue for the
three
months ended in Mar. 2026 was ₹92,933 Mil. Therefore, Oil India's Operating Margin % for the quarter that ended in Mar. 2026 was 27.78%.
Warning Sign:
Oil India Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Oil India's Operating Margin % or its related term are showing as below:
NSE:OIL'
s Operating Margin % Range Over the Past 10 Years
Min: 21.76 Med: 32.06 Max: 40.98
Current: 22.78
NSE:OIL's Operating Margin % is ranked better than 77.62% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs NSE:OIL: 22.78
Oil India's 5-Year Average Operating Margin % Growth Rate was -2.40% per year.
Oil India's Operating Income for the
three
months ended in Mar. 2026 was ₹25,818 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹77,335 Mil.
Oil India (NSE:OIL) 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.
Oil India Operating Margin % Related Terms
Oil India Operating Margin % Historical Data
* Premium members only.
The historical data trend for Oil 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:OIL vs XOM, CVX: Operating Margin % Comparison
For the Oil & Gas Integrated subindustry, Oil 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.
Oil India Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Oil India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Oil 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.
Oil 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.
Oil India (NSE:OIL) has a Operating Margin % of 27.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Oil India and its competitors. This is 13% below median its historical median of 32.06. Over the past decade, Oil India's Operating Margin % has ranged from 21.76 to 40.98. According to the industry distribution chart, Oil India ranks #205 out of 916 companies in the Oil & Gas industry, placing it in the top 22.4%.
Is Oil India's Operating Margin % too high?
Oil India's current Operating Margin % of 27.78% is 13% below median its 10-year median of 32.06. Over the past 10 years, this metric has ranged from a low of 21.76 to a high of 40.98. The Oil & Gas industry median Operating Margin % is 6.86. Oil India's value of 27.78% is 305% above this industry median. Based on the distribution chart, Oil India ranks #205 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Oil India has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Oil India's Operating Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Oil India ranks #205 out of 916 companies for Operating Margin %. This places Oil India in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Oil India's value of 27.78% is 305% above this benchmark. Historically, Oil India's own Operating Margin % has ranged from 21.76 to 40.98 over the past decade. While the company's 10-year median is 32.06 vs. the industry median of 6.86, Oil 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 Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 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. Oil India's current Operating Margin % of 27.78% is 305% 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 Oil India and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oil India's current Operating Margin % is 27.78%, which is 13% below median its own 10-year median of 32.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil India stock overvalued right now?
Based on GuruFocus' analysis, Oil India (NSE:OIL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹480.45, compared to a current price of ₹418.05 — trading 13% below its estimated fair value. The current Operating Margin % is 27.78%, which is 13% below median its 10-year median of 32.06 and 305% above the Oil & Gas industry median of 6.86. Oil India's overall GF Score™ is 89/100 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 Oil India (NSE:OIL), the current Operating Margin % is 27.78% 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 Oil India (NSE:OIL) Overvalued in 2026?
Based on GuruFocus' analysis, Oil India stock appears to be undervalued.
The current stock price of ₹418.05 is trading 13% below its estimated GF Value™ of ₹480.45.
GuruFocus considers Oil India to be Modestly Undervalued.
Key valuation signals for NSE:OIL:
Operating Margin %: 27.78% (13% below median its 10-year median of 32.06)
GF Value™: ₹480.45 vs. price of ₹418.05 (13% below fair value)
Industry Position: 305% above the Oil & Gas median (#205 of 916)
No single metric tells the full story. See the NSE:OIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oil India Ltd is mainly engaged in exploration, development, and production of products such as crude oil, natural gas, condensate, petroleum products, LPG, and providing services such as pipeline transportation services, City Gas Distribution (CGD), and generation of renewable energy. The group has adopted its products and services (viz. Crude Oil, Natural Gas, Petroleum Products, LPG, Pipeline Transportation, Renewable Energy, and Others) as the primary reporting segments. Maximum revenue for the group is generated from the sale of Refinery Products.
89GF Score
Get the complete analysis for NSE:OIL
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:OIL has been successfully added to your 
