SML MahindraNSE:SMLMAH +1.39%60 Operating Margin % is 8.58% as of Mar. 2026, which is 259% above its 10-year median of 2.39. GuruFocus rates NSE:SMLMAH with a GF Score™ of 60/100 and a GF Value™ of ₹2,414.38 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,325 Vehicles & Parts companies, SML Mahindra ranks better than 69.81% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SML Mahindra's Operating Income for the
three
months ended in Mar. 2026 was ₹770 Mil. SML Mahindra's Revenue for the
three
months ended in Mar. 2026 was ₹8,977 Mil. Therefore, SML Mahindra's Operating Margin % for the quarter that ended in Mar. 2026 was 8.58%.
The historical rank and industry rank for SML Mahindra's Operating Margin % or its related term are showing as below:
NSE:SMLMAH'
s Operating Margin % Range Over the Past 10 Years
Min: -19.6 Med: 2.39 Max: 7.98
Current: 7.98
NSE:SMLMAH's Operating Margin % is ranked better than 69.81% of 1325
companies
in the Vehicles & Parts industry
Industry Median: 4.86
vs NSE:SMLMAH: 7.98
SML Mahindra's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
SML Mahindra's Operating Income for the
three
months ended in Mar. 2026 was ₹770 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹2,264 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.
SML Mahindra Operating Margin % Related Terms
SML Mahindra Operating Margin % Historical Data
* Premium members only.
The historical data trend for SML Mahindra'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:SMLMAH vs TSLA, GM, F: Operating Margin % Comparison
For the Auto Manufacturers subindustry, SML Mahindra'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.
SML Mahindra Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SML Mahindra's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SML Mahindra'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.
SML Mahindra'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.
SML Mahindra (NSE:SMLMAH) has a Operating Margin % of 8.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SML Mahindra and its competitors. This is 259% above median its historical median of 2.39. According to the industry distribution chart, SML Mahindra ranks #400 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 30.2%.
Is SML Mahindra's Operating Margin % too high?
SML Mahindra's current Operating Margin % of 8.58% is 259% above median its 10-year median of 2.39. The Vehicles & Parts industry median Operating Margin % is 4.86. SML Mahindra's value of 8.58% is 76.5% above this industry median. Based on the distribution chart, SML Mahindra ranks #400 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, SML Mahindra has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SML Mahindra's Operating Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, SML Mahindra ranks #400 out of 1325 companies for Operating Margin %. This puts SML Mahindra in the upper half of its industry. The industry median Operating Margin % is 4.86. SML Mahindra's value of 8.58% is 76.5% above this benchmark. While the company's 10-year median is 2.39 vs. the industry median of 4.86, SML Mahindra 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. SML Mahindra's current Operating Margin % of 8.58% is 76.5% 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 SML Mahindra and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SML Mahindra's current Operating Margin % is 8.58%, which is 259% above median its own 10-year median of 2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SML Mahindra stock overvalued right now?
Based on GuruFocus' analysis, SML Mahindra (NSE:SMLMAH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,414.38, compared to a current price of ₹4,092.90 — trading 69.5% above its estimated fair value. The current Operating Margin % is 8.58%, which is 259% above median its 10-year median of 2.39 and 76.5% above the Vehicles & Parts industry median of 4.86. SML Mahindra's overall GF Score™ is 60/100 with 2 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 SML Mahindra (NSE:SMLMAH), the current Operating Margin % is 8.58% 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 SML Mahindra (NSE:SMLMAH) Overvalued in 2026?
Based on GuruFocus' analysis, SML Mahindra stock appears to be overvalued.
The current stock price of ₹4,092.90 is trading 69.5% above its estimated GF Value™ of ₹2,414.38.
GuruFocus considers SML Mahindra to be Significantly Overvalued.
Key valuation signals for NSE:SMLMAH:
Operating Margin %: 8.58% (259% above median its 10-year median of 2.39)
GF Value™: ₹2,414.38 vs. price of ₹4,092.90 (69.5% above fair value)
Industry Position: 76.5% above the Vehicles & Parts median (#400 of 1325)
No single metric tells the full story. See the NSE:SMLMAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SML Mahindra Ltd, formerly SML Isuzu Ltd is engaged in the business of manufacturing and selling of commercial vehicles including light and medium-duty trucks, buses, ambulances, and specialized vehicles. The company integrates Japanese technology with local manufacturing to offer reliable and cost-effective transportation solutions. Its product portfolio spans cargo trucks and passenger buses with variants that support different industries such as education, tourism, and corporate transport. Revenue is majorly generated through the sale of vehicles and after-sales services including telematics support. The company operates predominantly in India and exports to several countries across Africa and Asia.
60GF Score
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