Fauji FoodsKAR:FFL -0.90%58 Gross Margin % is 18.02% as of Mar. 2026, which is 228% above its 10-year median of 5.49. GuruFocus rates KAR:FFL with a GF Score™ of 58/100 and a GF Value™ of ₨15.37 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,900 Consumer Packaged Goods companies, Fauji Foods ranks worse than 70.95% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Fauji Foods's Gross Profit for the
three
months ended in Mar. 2026 was ₨1,539 Mil. Fauji Foods's Revenue for the
three
months ended in Mar. 2026 was ₨8,543 Mil. Therefore, Fauji Foods's Gross Margin % for the quarter that ended in Mar. 2026 was 18.02%.
The historical rank and industry rank for Fauji Foods's Gross Margin % or its related term are showing as below:
KAR:FFL'
s Gross Margin % Range Over the Past 10 Years
Min: -11.82 Med: 5.49 Max: 17.49
Current: 17.31
During the past 12 years, the highestGross Margin % of Fauji Foods was 17.49%. The lowest was -11.82%. And the median was 5.49%.
KAR:FFL's Gross Margin % is ranked worse than 70.95% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs KAR:FFL: 17.31
Fauji Foods had a gross margin of 18.02% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fauji Foods was 62.90% per year.
Fauji Foods (KAR:FFL) 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
Fauji Foods had a gross margin of 18.02% for the quarter that ended in Mar. 2026 => No sustainable 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.
Fauji Foods Gross Margin % Related Terms
Fauji Foods Gross Margin % Historical Data
* Premium members only.
The historical data trend for Fauji Foods'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, Fauji Foods'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.
Fauji Foods Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fauji Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fauji Foods'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.
Fauji Foods (KAR:FFL) has a Gross Margin % of 18.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fauji Foods and its competitors. This is 228% above median its historical median of 5.49. According to the industry distribution chart, Fauji Foods ranks #1348 out of 1900 companies in the Consumer Packaged Goods industry, placing it in the top 70.9%.
Is Fauji Foods' Gross Margin % too high?
Fauji Foods' current Gross Margin % of 18.02% is 228% above median its 10-year median of 5.49. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Fauji Foods' value of 18.02% is 31.7% below this industry median. Based on the distribution chart, Fauji Foods ranks #1348 out of 1900 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Fauji Foods has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fauji Foods' Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fauji Foods ranks #1348 out of 1900 companies for Gross Margin %. This places Fauji Foods in the lower half of its industry. The industry median Gross Margin % is 26.37. Fauji Foods' value of 18.02% is 31.7% below this benchmark. While the company's 10-year median is 5.49 vs. the industry median of 26.37, Fauji Foods has consistently been below 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 26.37, based on 1,900 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. Fauji Foods's current Gross Margin % of 18.02% is 31.7% below 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 Fauji Foods and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fauji Foods's current Gross Margin % is 18.02%, which is 228% above median its own 10-year median of 5.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fauji Foods stock overvalued right now?
Based on GuruFocus' analysis, Fauji Foods (KAR:FFL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨15.37, compared to a current price of ₨17.68 — trading 15% above its estimated fair value. The current Gross Margin % is 18.02%, which is 228% above median its 10-year median of 5.49 and 31.7% below the Consumer Packaged Goods industry median of 26.37. Fauji Foods' overall GF Score™ is 58/100 with 2 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 Fauji Foods (KAR:FFL), the current Gross Margin % is 18.02% 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 Fauji Foods (KAR:FFL) Overvalued in 2026?
Based on GuruFocus' analysis, Fauji Foods stock appears to be overvalued.
The current stock price of ₨17.68 is trading 15% above its estimated GF Value™ of ₨15.37.
GuruFocus considers Fauji Foods to be Modestly Overvalued.
Key valuation signals for KAR:FFL:
Gross Margin %: 18.02% (228% above median its 10-year median of 5.49)
GF Value™: ₨15.37 vs. price of ₨17.68 (15% above fair value)
Industry Position: 31.7% below the Consumer Packaged Goods median (#1348 of 1900)
No single metric tells the full story. See the KAR:FFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fauji Foods Ltd manufactures and sells dairy products. It is principally engaged in the processing and sale of toned milk, milk powder, fruit juices, allied dairy and food products. It operates brands like Nurpur which is into dairy products, Dostea a liquid tea whitener, MUST fruit drinks offers a range of fruit drinks, and the Food Services Department caters to all customers who require quality food solutions for their businesses.
58GF Score
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