Vardhman Special SteelsNSE:VSSL -0.58%75 Operating Margin % is 8.36% as of Mar. 2026, which is 8% above its 10-year median of 7.71. GuruFocus rates NSE:VSSL with a GF Score™ of 75/100 and a GF Value™ of ₹224.07 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 616 Steel companies, Vardhman Special Steels ranks better than 73.21% on this metric.
Vardhman Special Steels (NSE:VSSL) 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.
Vardhman Special Steels Operating Margin % Related Terms
Vardhman Special Steels Operating Margin % Historical Data
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The historical data trend for Vardhman Special Steels'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:VSSL vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Vardhman Special Steels'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.
Vardhman Special Steels Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Vardhman Special Steels's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vardhman Special Steels's Operating Margin % falls into.
Vardhman Special Steels 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.
Vardhman Special Steels'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.
Vardhman Special Steels (NSE:VSSL) has a Operating Margin % of 8.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vardhman Special Steels and its competitors. This is near median its historical median of 7.71. Over the past decade, Vardhman Special Steels' Operating Margin % has ranged from 2.43 to 12.83. According to the industry distribution chart, Vardhman Special Steels ranks #165 out of 616 companies in the Steel industry, placing it in the top 26.8%.
Is Vardhman Special Steels' Operating Margin % too high?
Vardhman Special Steels' current Operating Margin % of 8.36% is near median its 10-year median of 7.71. Over the past 10 years, this metric has ranged from a low of 2.43 to a high of 12.83. The Steel industry median Operating Margin % is 3.00. Vardhman Special Steels' value of 8.36% is 178.7% above this industry median. Based on the distribution chart, Vardhman Special Steels ranks #165 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Vardhman Special Steels has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Vardhman Special Steels ranks #165 out of 616 companies for Operating Margin %. This puts Vardhman Special Steels in the upper half of its industry. The industry median Operating Margin % is 3.00. Vardhman Special Steels' value of 8.36% is 178.7% above this benchmark. Historically, Vardhman Special Steels' own Operating Margin % has ranged from 2.43 to 12.83 over the past decade. While the company's 10-year median is 7.71 vs. the industry median of 3.00, Vardhman Special Steels 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 616 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. Vardhman Special Steels's current Operating Margin % of 8.36% is 178.7% 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 Vardhman Special Steels 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. Vardhman Special Steels's current Operating Margin % is 8.36%, which is near median its own 10-year median of 7.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Special Steels stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Special Steels (NSE:VSSL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹224.07, compared to a current price of ₹282.90 — trading 26.3% above its estimated fair value. The current Operating Margin % is 8.36%, which is near median its 10-year median of 7.71 and 178.7% above the Steel industry median of 3.00. Vardhman Special Steels' overall GF Score™ is 75/100 with 7 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 Vardhman Special Steels (NSE:VSSL), the current Operating Margin % is 8.36% 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 Vardhman Special Steels (NSE:VSSL) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Special Steels stock appears to be overvalued.
The current stock price of ₹282.90 is trading 26.3% above its estimated GF Value™ of ₹224.07.
GuruFocus considers Vardhman Special Steels to be Modestly Overvalued.
Key valuation signals for NSE:VSSL:
Operating Margin %: 8.36% (near median its 10-year median of 7.71)
GF Value™: ₹224.07 vs. price of ₹282.90 (26.3% above fair value)
Industry Position: 178.7% above the Steel median (#165 of 616)
No single metric tells the full story. See the NSE:VSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India and also has a presence outside India.
75GF Score
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