Steel Authority Of IndiaNSE:SAIL -0.38%78 Operating Margin % is 9.19% as of Mar. 2026, which is 60% above its 10-year median of 5.75. GuruFocus rates NSE:SAIL with a GF Score™ of 78/100 and a GF Value™ of ₹140.84 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 610 Steel companies, Steel Authority Of India ranks better than 64.92% on this metric.
Steel Authority Of India (NSE:SAIL) 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.
Steel Authority Of India Operating Margin % Related Terms
Steel Authority Of India Operating Margin % Historical Data
* 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:SAIL vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Steel Authority Of 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.
Steel Authority Of India Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Authority Of India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Steel Authority Of India's Operating Margin % falls into.
Steel Authority Of India Operating Margin % Calculation
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.
Steel Authority Of 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.
Steel Authority Of India (NSE:SAIL) has a Operating Margin % of 9.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Steel Authority Of India and its competitors. This is 60% above median its historical median of 5.75. According to the industry distribution chart, Steel Authority Of India ranks #214 out of 610 companies in the Steel industry, placing it in the top 35.1%.
Is Steel Authority Of India's Operating Margin % too high?
Steel Authority Of India's current Operating Margin % of 9.19% is 60% above median its 10-year median of 5.75. The Steel industry median Operating Margin % is 3.00. Steel Authority Of India's value of 9.19% is 206.3% above this industry median. Based on the distribution chart, Steel Authority Of India ranks #214 out of 610 companies in the Steel industry, which is above the industry midpoint. Overall, Steel Authority Of India has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Authority Of India's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Steel Authority Of India ranks #214 out of 610 companies for Operating Margin %. This puts Steel Authority Of India in the upper half of its industry. The industry median Operating Margin % is 3.00. Steel Authority Of India's value of 9.19% is 206.3% above this benchmark. While the company's 10-year median is 5.75 vs. the industry median of 3.00, Steel Authority Of 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 a Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 610 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. Steel Authority Of India's current Operating Margin % of 9.19% is 206.3% 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 Steel Authority Of India 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. Steel Authority Of India's current Operating Margin % is 9.19%, which is 60% above median its own 10-year median of 5.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Authority Of India stock overvalued right now?
Based on GuruFocus' analysis, Steel Authority Of India (NSE:SAIL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹140.84, compared to a current price of ₹169.23 — trading 20.2% above its estimated fair value. The current Operating Margin % is 9.19%, which is 60% above median its 10-year median of 5.75 and 206.3% above the Steel industry median of 3.00. Steel Authority Of India's overall GF Score™ is 78/100 with 3 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 Steel Authority Of India (NSE:SAIL), the current Operating Margin % is 9.19% 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 Steel Authority Of India (NSE:SAIL) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Authority Of India stock appears to be overvalued.
The current stock price of ₹169.23 is trading 20.2% above its estimated GF Value™ of ₹140.84.
GuruFocus considers Steel Authority Of India to be Modestly Overvalued.
Key valuation signals for NSE:SAIL:
Operating Margin %: 9.19% (60% above median its 10-year median of 5.75)
GF Value™: ₹140.84 vs. price of ₹169.23 (20.2% above fair value)
Industry Position: 206.3% above the Steel median (#214 of 610)
No single metric tells the full story. See the NSE:SAIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel Authority Of India Ltd is a steelmaker. The company produces flat steel products (including plates, sheets, coils, and galvanized plain), long steel products (rails, structural, wire rods, and merchant products), electric-resistance-welded pipes, and silicon steel sheets. Flat and long products account for the majority of the company's sales. The company runs five integrated steel plants and three alloy steel plants. The segments of the company include BSP, DSP, RSP, BSL, ISP, ASP, SSP, VISL and Others. It generates maximum of its revenue from the Indian domestic market.
78GF Score
Get the complete analysis for NSE:SAIL
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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