Petronet LNGNSE:PETRONET -1.95%85 Operating Margin % is 12.28% as of Mar. 2026, which is 27% above its 10-year median of 9.69. GuruFocus rates NSE:PETRONET with a GF Score™ of 85/100 and a GF Value™ of ₹252.93 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 921 Oil & Gas companies, Petronet LNG ranks better than 58.96% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Petronet LNG's Operating Income for the
three
months ended in Mar. 2026 was ₹11,599 Mil. Petronet LNG's Revenue for the
three
months ended in Mar. 2026 was ₹94,421 Mil. Therefore, Petronet LNG's Operating Margin % for the quarter that ended in Mar. 2026 was 12.28%.
Warning Sign:
Petronet LNG Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.7%.
The historical rank and industry rank for Petronet LNG's Operating Margin % or its related term are showing as below:
NSE:PETRONET'
s Operating Margin % Range Over the Past 10 Years
Min: 7.37 Med: 9.69 Max: 15.12
Current: 10.24
NSE:PETRONET's Operating Margin % is ranked better than 58.96% of 921
companies
in the Oil & Gas industry
Industry Median: 6.85
vs NSE:PETRONET: 10.24
Petronet LNG's 5-Year Average Operating Margin % Growth Rate was -5.70% per year.
Petronet LNG's Operating Income for the
three
months ended in Mar. 2026 was ₹11,599 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹44,555 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.
Petronet LNG Operating Margin % Related Terms
Petronet LNG Operating Margin % Historical Data
* Premium members only.
The historical data trend for Petronet LNG'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:PETRONET vs VLO, MPC, PSX: Operating Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Petronet LNG'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.
Petronet LNG Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Petronet LNG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Petronet LNG'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.
Petronet LNG'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.
Petronet LNG (NSE:PETRONET) has a Operating Margin % of 12.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Petronet LNG and its competitors. This is 27% above median its historical median of 9.69. Over the past decade, Petronet LNG's Operating Margin % has ranged from 7.37 to 15.12. According to the industry distribution chart, Petronet LNG ranks #378 out of 921 companies in the Oil & Gas industry, placing it in the top 41%.
Is Petronet LNG's Operating Margin % too high?
Petronet LNG's current Operating Margin % of 12.28% is 27% above median its 10-year median of 9.69. Over the past 10 years, this metric has ranged from a low of 7.37 to a high of 15.12. The Oil & Gas industry median Operating Margin % is 6.85. Petronet LNG's value of 12.28% is 79.3% above this industry median. Based on the distribution chart, Petronet LNG ranks #378 out of 921 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Petronet LNG has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Petronet LNG's Operating Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Petronet LNG ranks #378 out of 921 companies for Operating Margin %. This puts Petronet LNG in the upper half of its industry. The industry median Operating Margin % is 6.85. Petronet LNG's value of 12.28% is 79.3% above this benchmark. Historically, Petronet LNG's own Operating Margin % has ranged from 7.37 to 15.12 over the past decade. While the company's 10-year median is 9.69 vs. the industry median of 6.85, Petronet LNG 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 6.85, based on 921 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. Petronet LNG's current Operating Margin % of 12.28% is 79.3% 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 Petronet LNG and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petronet LNG's current Operating Margin % is 12.28%, which is 27% above median its own 10-year median of 9.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petronet LNG stock overvalued right now?
Based on GuruFocus' analysis, Petronet LNG (NSE:PETRONET) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹252.93, compared to a current price of ₹282.25 — trading 11.6% above its estimated fair value. The current Operating Margin % is 12.28%, which is 27% above median its 10-year median of 9.69 and 79.3% above the Oil & Gas industry median of 6.85. Petronet LNG's overall GF Score™ is 85/100 with 4 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 Petronet LNG (NSE:PETRONET), the current Operating Margin % is 12.28% 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 Petronet LNG (NSE:PETRONET) Overvalued in 2026?
Based on GuruFocus' analysis, Petronet LNG stock appears to be overvalued.
The current stock price of ₹282.25 is trading 11.6% above its estimated GF Value™ of ₹252.93.
GuruFocus considers Petronet LNG to be Modestly Overvalued.
Key valuation signals for NSE:PETRONET:
Operating Margin %: 12.28% (27% above median its 10-year median of 9.69)
GF Value™: ₹252.93 vs. price of ₹282.25 (11.6% above fair value)
Industry Position: 79.3% above the Oil & Gas median (#378 of 921)
No single metric tells the full story. See the NSE:PETRONET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petronet LNG Ltd is an oil and gas refining and marketing company formed by the government of India. The company operates liquified natural gas receiving and regasification terminals across India. Through its terminals, it also offers tolling services and re-loading terminals. The company has a single operating segment which is Natural Gas Business. Petronet LNG also owns a solid cargo port at Dahej with facilities to import and export products such as steel, coal, and fertilizer in bulk. Sales are largely composed of regasified liquefied natural gas and the majority of its revenue is derived from India.
85GF Score
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