CSL FinanceNSE:CSLFINANCE -0.80%79 Gross Margin % is 54.03% as of Mar. 2026, which is 19% below its 10-year median of 66.69. GuruFocus rates NSE:CSLFINANCE with a GF Score™ of 79/100 and a GF Value™ of ₹441.69 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 387 Credit Services companies, CSL Finance ranks better than 52.97% on this metric.
CSL Finance Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.6%.
The historical rank and industry rank for CSL Finance's Gross Margin % or its related term are showing as below:
NSE:CSLFINANCE'
s Gross Margin % Range Over the Past 10 Years
Min: 53.55 Med: 66.69 Max: 78.47
Current: 53.55
During the past 13 years, the highestGross Margin % of CSL Finance was 78.47%. The lowest was 53.55%. And the median was 66.69%.
NSE:CSLFINANCE's Gross Margin % is ranked better than 52.97% of 387
companies
in the Credit Services industry
Industry Median: 51.88
vs NSE:CSLFINANCE: 53.55
CSL Finance had a gross margin of 54.03% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CSL Finance was -7.60% per year.
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
CSL Finance had a gross margin of 54.03% 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.
CSL Finance Gross Margin % Related Terms
CSL Finance Gross Margin % Historical Data
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The historical data trend for CSL Finance'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.
NSE:CSLFINANCE vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, CSL Finance'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.
CSL Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, CSL Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CSL Finance'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.
CSL Finance (NSE:CSLFINANCE) has a Gross Margin % of 54.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CSL Finance and its competitors. This is 19% below median its historical median of 66.69. Over the past decade, CSL Finance's Gross Margin % has ranged from 53.55 to 78.47. According to the industry distribution chart, CSL Finance ranks #182 out of 387 companies in the Credit Services industry, placing it in the top 47%.
Is CSL Finance's Gross Margin % too high?
CSL Finance's current Gross Margin % of 54.03% is 19% below median its 10-year median of 66.69. Over the past 10 years, this metric has ranged from a low of 53.55 to a high of 78.47. The Credit Services industry median Gross Margin % is 51.88. CSL Finance's value of 54.03% is 4.1% above this industry median. Based on the distribution chart, CSL Finance ranks #182 out of 387 companies in the Credit Services industry, which is above the industry midpoint. Overall, CSL Finance has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CSL Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, CSL Finance ranks #182 out of 387 companies for Gross Margin %. This puts CSL Finance in the upper half of its industry. The industry median Gross Margin % is 51.88. CSL Finance's value of 54.03% is 4.1% above this benchmark. Historically, CSL Finance's own Gross Margin % has ranged from 53.55 to 78.47 over the past decade. While the company's 10-year median is 66.69 vs. the industry median of 51.88, CSL Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 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. CSL Finance's current Gross Margin % of 54.03% is 4.1% 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 CSL Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CSL Finance's current Gross Margin % is 54.03%, which is 19% below median its own 10-year median of 66.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSL Finance stock overvalued right now?
Based on GuruFocus' analysis, CSL Finance (NSE:CSLFINANCE) is currently considered Possible Value Trap. The stock's GF Value™ is ₹441.69, compared to a current price of ₹227.05 — trading 48.6% below its estimated fair value. The current Gross Margin % is 54.03%, which is 19% below median its 10-year median of 66.69 and 4.1% above the Credit Services industry median of 51.88. CSL Finance's overall GF Score™ is 79/100 with 7 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 CSL Finance (NSE:CSLFINANCE), the current Gross Margin % is 54.03% 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 CSL Finance (NSE:CSLFINANCE) Overvalued in 2026?
Based on GuruFocus' analysis, CSL Finance stock appears to be undervalued.
The current stock price of ₹227.05 is trading 48.6% below its estimated GF Value™ of ₹441.69.
GuruFocus considers CSL Finance to be Possible Value Trap.
Key valuation signals for NSE:CSLFINANCE:
Gross Margin %: 54.03% (19% below median its 10-year median of 66.69)
GF Value™: ₹441.69 vs. price of ₹227.05 (48.6% below fair value)
Industry Position: 4.1% above the Credit Services median (#182 of 387)
No single metric tells the full story. See the NSE:CSLFINANCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSL Finance Ltd operates as a non-banking financial institution. The business activity of the company is to offer secured and unsecured lending to small and medium-size business units to fulfil their financial needs. The company's business is classified into two broader segments of SME business and Wholesale business. SME business is mainly focused on micro and small business loans to various business entities, which is secured mostly against self-occupied Residential or Commercial properties. Wholesale business is focused on big ticket size loans for the working capital requirement of businesses. The primary revenue source of the company is interest income. The company operates within India.
79GF Score
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