Nestle IndiaBOM:500790 -0.45%97 Gross Margin % is 55.53% as of Mar. 2026, which is 1% below its 10-year median of 56.04. GuruFocus rates BOM:500790 with a GF Score™ of 97/100 and a GF Value™ of ₹1,486.99 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,906 Consumer Packaged Goods companies, Nestle India ranks better than 87.93% on this metric.
The historical rank and industry rank for Nestle India's Gross Margin % or its related term are showing as below:
BOM:500790'
s Gross Margin % Range Over the Past 10 Years
Min: 52.95 Med: 56.04 Max: 58.27
Current: 55.09
During the past 13 years, the highestGross Margin % of Nestle India was 58.27%. The lowest was 52.95%. And the median was 56.04%.
BOM:500790's Gross Margin % is ranked better than 87.93% of 1906
companies
in the Consumer Packaged Goods industry
Industry Median: 26.355
vs BOM:500790: 55.09
Nestle India had a gross margin of 55.53% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nestle India was -1.00% per year.
Nestle India (BOM:500790) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Nestle India had a gross margin of 55.53% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Nestle India Gross Margin % Related Terms
Nestle India Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nestle India's Gross 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.
For the Packaged Foods subindustry, Nestle India's Gross Margin %, along with its competitors' market caps and Gross 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.
Nestle India Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle India's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nestle India's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Nestle India (BOM:500790) has a Gross Margin % of 55.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nestle India and its competitors. This is near median its historical median of 56.04. Over the past decade, Nestle India's Gross Margin % has ranged from 52.95 to 58.27. According to the industry distribution chart, Nestle India ranks #230 out of 1906 companies in the Consumer Packaged Goods industry, placing it in the top 12.1%.
Is Nestle India's Gross Margin % too high?
Nestle India's current Gross Margin % of 55.53% is near median its 10-year median of 56.04. Over the past 10 years, this metric has ranged from a low of 52.95 to a high of 58.27. The Consumer Packaged Goods industry median Gross Margin % is 26.36. Nestle India's value of 55.53% is 110.7% above this industry median. Based on the distribution chart, Nestle India ranks #230 out of 1906 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle India has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle India's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle India ranks #230 out of 1906 companies for Gross Margin %. This places Nestle India in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.36. Nestle India's value of 55.53% is 110.7% above this benchmark. Historically, Nestle India's own Gross Margin % has ranged from 52.95 to 58.27 over the past decade. While the company's 10-year median is 56.04 vs. the industry median of 26.36, Nestle 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 Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.36, based on 1,906 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nestle India's current Gross Margin % of 55.53% is 110.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Nestle India and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle India's current Gross Margin % is 55.53%, which is near median its own 10-year median of 56.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle India stock overvalued right now?
Based on GuruFocus' analysis, Nestle India (BOM:500790) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,486.99, compared to a current price of ₹1,456.65 — trading 2% below its estimated fair value. The current Gross Margin % is 55.53%, which is near median its 10-year median of 56.04 and 110.7% above the Consumer Packaged Goods industry median of 26.36. Nestle India's overall GF Score™ is 97/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Nestle India (BOM:500790), the current Gross Margin % is 55.53% 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 Nestle India (BOM:500790) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle India stock appears to be undervalued.
The current stock price of ₹1,456.65 is trading 2% below its estimated GF Value™ of ₹1,486.99.
GuruFocus considers Nestle India to be Fairly Valued.
Key valuation signals for BOM:500790:
Gross Margin %: 55.53% (near median its 10-year median of 56.04)
GF Value™: ₹1,486.99 vs. price of ₹1,456.65 (2% below fair value)
Industry Position: 110.7% above the Consumer Packaged Goods median (#230 of 1906)
No single metric tells the full story. See the BOM:500790 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle India Ltd is mainly involved in Food business which incorporates product groups viz. Milk Products and Nutrition, Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages and Confectionery. The company's brand portfolio provides Nestle Healthy Breakfast Cereals, Coffee, Chocolates & Confectionery, Nutrition, Dairy, Foods, Vending and Food Services, My Nestle, Nestle Health Science, Import, Tea export, and NESTLE Ad Campaigns. The company has single operating segment. The company has presence in India and Outside India. The company generates majority of revenue from India.
97GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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