SRM ContractorsNSE:SRM -0.56%50 Operating Margin % is 15.45% as of Mar. 2026, which is 56% above its 10-year median of 9.89. GuruFocus rates NSE:SRM with a GF Score™ of 50/100. The stock has 1 warning sign investors should review. Among 1,767 Construction companies, SRM Contractors ranks better than 83.36% on this metric.
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.
SRM Contractors Operating Margin % Related Terms
SRM Contractors Operating Margin % Historical Data
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The historical data trend for SRM Contractors'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:SRM vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, SRM Contractors'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.
SRM Contractors Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, SRM Contractors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SRM Contractors'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.
SRM Contractors'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.
SRM Contractors (NSE:SRM) has a Operating Margin % of 15.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SRM Contractors and its competitors. This is 56% above median its historical median of 9.89. Over the past decade, SRM Contractors' Operating Margin % has ranged from 7.11 to 14.79. According to the industry distribution chart, SRM Contractors ranks #294 out of 1767 companies in the Construction industry, placing it in the top 16.6%.
Is SRM Contractors' Operating Margin % too high?
SRM Contractors' current Operating Margin % of 15.45% is 56% above median its 10-year median of 9.89. Over the past 10 years, this metric has ranged from a low of 7.11 to a high of 14.79. The Construction industry median Operating Margin % is 5.89. SRM Contractors' value of 15.45% is 162.3% above this industry median. Based on the distribution chart, SRM Contractors ranks #294 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, SRM Contractors has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does SRM Contractors' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, SRM Contractors ranks #294 out of 1767 companies for Operating Margin %. This places SRM Contractors in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. SRM Contractors' value of 15.45% is 162.3% above this benchmark. Historically, SRM Contractors' own Operating Margin % has ranged from 7.11 to 14.79 over the past decade. While the company's 10-year median is 9.89 vs. the industry median of 5.89, SRM Contractors 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. SRM Contractors's current Operating Margin % of 15.45% is 162.3% 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 SRM Contractors and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SRM Contractors's current Operating Margin % is 15.45%, which is 56% above median its own 10-year median of 9.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRM Contractors stock overvalued right now?
SRM Contractors (NSE:SRM) has a current Operating Margin % of 15.45%. The current Operating Margin % is 15.45%, which is 56% above median its 10-year median of 9.89 and 162.3% above the Construction industry median of 5.89. SRM Contractors' overall GF Score™ is 50/100 with 1 warning sign 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 SRM Contractors (NSE:SRM), the current Operating Margin % is 15.45% 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.
SRM Contractors Ltd is an engineering, construction, and development company. It is engaged in the construction of roads (including bridges), tunnels, drainage systems, irrigation projects, food control infrastructure, slope stabilisation works, and other miscellaneous civil construction activities in Jammu and Kashmir and Ladakh. The business of the company is segregated into the following core service verticals: Road Projects, Tunnel Projects, Slope Stabilization, and Miscellaneous Civil Construction. It undertakes construction works both as an EPC contractor and on an item rate basis for infrastructure projects.
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