AvantelBOM:532406 +0.19%86 Gross Margin % is 71.10% as of Mar. 2026, which is 26% above its 10-year median of 56.25. GuruFocus rates BOM:532406 with a GF Score™ of 86/100 and a GF Value™ of ₹119.84 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,457 Hardware companies, Avantel ranks better than 97.07% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Avantel's Gross Profit for the
three
months ended in Mar. 2026 was ₹454 Mil. Avantel's Revenue for the
three
months ended in Mar. 2026 was ₹638 Mil. Therefore, Avantel's Gross Margin % for the quarter that ended in Mar. 2026 was 71.10%.
The historical rank and industry rank for Avantel's Gross Margin % or its related term are showing as below:
BOM:532406'
s Gross Margin % Range Over the Past 10 Years
Min: 48.57 Med: 56.25 Max: 70.66
Current: 70.66
During the past 13 years, the highestGross Margin % of Avantel was 70.66%. The lowest was 48.57%. And the median was 56.25%.
BOM:532406's Gross Margin % is ranked better than 97.07% of 2457
companies
in the Hardware industry
Industry Median: 24.54
vs BOM:532406: 70.66
Avantel had a gross margin of 71.10% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Avantel was 4.10% per year.
Avantel (BOM:532406) 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
Avantel had a gross margin of 71.10% 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.
Avantel Gross Margin % Related Terms
Avantel Gross Margin % Historical Data
* Premium members only.
The historical data trend for Avantel'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.
BOM:532406 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Avantel'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.
Avantel Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Avantel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avantel'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.
Avantel (BOM:532406) has a Gross Margin % of 71.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avantel and its competitors. This is 26% above median its historical median of 56.25. Over the past decade, Avantel's Gross Margin % has ranged from 48.57 to 70.66. According to the industry distribution chart, Avantel ranks #72 out of 2457 companies in the Hardware industry, placing it in the top 2.9%.
Is Avantel's Gross Margin % too high?
Avantel's current Gross Margin % of 71.10% is 26% above median its 10-year median of 56.25. Over the past 10 years, this metric has ranged from a low of 48.57 to a high of 70.66. The Hardware industry median Gross Margin % is 24.54. Avantel's value of 71.10% is 189.7% above this industry median. Based on the distribution chart, Avantel ranks #72 out of 2457 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Avantel has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avantel's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Avantel ranks #72 out of 2457 companies for Gross Margin %. This places Avantel in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.54. Avantel's value of 71.10% is 189.7% above this benchmark. Historically, Avantel's own Gross Margin % has ranged from 48.57 to 70.66 over the past decade. While the company's 10-year median is 56.25 vs. the industry median of 24.54, Avantel 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.54, based on 2,457 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. Avantel's current Gross Margin % of 71.10% is 189.7% 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 Avantel and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avantel's current Gross Margin % is 71.10%, which is 26% above median its own 10-year median of 56.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avantel stock overvalued right now?
Based on GuruFocus' analysis, Avantel (BOM:532406) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹119.84, compared to a current price of ₹180.20 — trading 50.4% above its estimated fair value. The current Gross Margin % is 71.10%, which is 26% above median its 10-year median of 56.25 and 189.7% above the Hardware industry median of 24.54. Avantel's overall GF Score™ is 86/100 with 9 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 Avantel (BOM:532406), the current Gross Margin % is 71.10% 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 Avantel (BOM:532406) Overvalued in 2026?
Based on GuruFocus' analysis, Avantel stock appears to be overvalued.
The current stock price of ₹180.20 is trading 50.4% above its estimated GF Value™ of ₹119.84.
GuruFocus considers Avantel to be Significantly Overvalued.
Key valuation signals for BOM:532406:
Gross Margin %: 71.10% (26% above median its 10-year median of 56.25)
GF Value™: ₹119.84 vs. price of ₹180.20 (50.4% above fair value)
Industry Position: 189.7% above the Hardware median (#72 of 2457)
No single metric tells the full story. See the BOM:532406 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avantel Ltd is engaged in the business of manufacturing telecom products and provides related customer support services. It caters to both domestic and international markets. It specializes in integrating technologies related to the wireless front end, satellite communication, embedded systems, signal processing, network management, and software development. It offers wireless, Satcom products, wireless products, software solutions, and services. It caters to defense, railway, and marine industries.
86GF Score
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