Hindustan AeronauticsNSE:HAL +0.88%94 Gross Margin % is 37.43% as of Mar. 2026, which is 1% above its 10-year median of 36.92. GuruFocus rates NSE:HAL with a GF Score™ of 94/100 and a GF Value™ of ₹4,709.23 (Fairly Valued). The stock has 3 warning signs investors should review. Among 343 Aerospace & Defense companies, Hindustan Aeronautics ranks better than 67.64% on this metric.
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
Hindustan Aeronautics had a gross margin of 37.43% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Hindustan Aeronautics Gross Margin % Related Terms
Hindustan Aeronautics Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hindustan Aeronautics'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:HAL vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Hindustan Aeronautics'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.
Hindustan Aeronautics Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hindustan Aeronautics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hindustan Aeronautics'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.
Hindustan Aeronautics (NSE:HAL) has a Gross Margin % of 37.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hindustan Aeronautics and its competitors. This is near median its historical median of 36.92. Over the past decade, Hindustan Aeronautics' Gross Margin % has ranged from 28.23 to 42.41. According to the industry distribution chart, Hindustan Aeronautics ranks #111 out of 343 companies in the Aerospace & Defense industry, placing it in the top 32.4%.
Is Hindustan Aeronautics' Gross Margin % too high?
Hindustan Aeronautics' current Gross Margin % of 37.43% is near median its 10-year median of 36.92. Over the past 10 years, this metric has ranged from a low of 28.23 to a high of 42.41. The Aerospace & Defense industry median Gross Margin % is 26.61. Hindustan Aeronautics' value of 37.43% is 40.7% above this industry median. Based on the distribution chart, Hindustan Aeronautics ranks #111 out of 343 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Hindustan Aeronautics has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Aeronautics' Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Hindustan Aeronautics ranks #111 out of 343 companies for Gross Margin %. This puts Hindustan Aeronautics in the upper half of its industry. The industry median Gross Margin % is 26.61. Hindustan Aeronautics' value of 37.43% is 40.7% above this benchmark. Historically, Hindustan Aeronautics' own Gross Margin % has ranged from 28.23 to 42.41 over the past decade. While the company's 10-year median is 36.92 vs. the industry median of 26.61, Hindustan Aeronautics 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 an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.61, based on 343 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. Hindustan Aeronautics's current Gross Margin % of 37.43% is 40.7% 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 Hindustan Aeronautics and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Aeronautics's current Gross Margin % is 37.43%, which is near median its own 10-year median of 36.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Aeronautics stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Aeronautics (NSE:HAL) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,709.23, compared to a current price of ₹4,381.20 — trading 7% below its estimated fair value. The current Gross Margin % is 37.43%, which is near median its 10-year median of 36.92 and 40.7% above the Aerospace & Defense industry median of 26.61. Hindustan Aeronautics' overall GF Score™ is 94/100 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 Hindustan Aeronautics (NSE:HAL), the current Gross Margin % is 37.43% 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 Hindustan Aeronautics (NSE:HAL) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Aeronautics stock appears to be undervalued.
The current stock price of ₹4,381.20 is trading 7% below its estimated GF Value™ of ₹4,709.23.
GuruFocus considers Hindustan Aeronautics to be Fairly Valued.
Key valuation signals for NSE:HAL:
Gross Margin %: 37.43% (near median its 10-year median of 36.92)
GF Value™: ₹4,709.23 vs. price of ₹4,381.20 (7% below fair value)
Industry Position: 40.7% above the Aerospace & Defense median (#111 of 343)
No single metric tells the full story. See the NSE:HAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Aeronautics Ltd operates in the aerospace and defense sector. The company is engaged in the design, manufacturing, and development of products like aircraft, helicopters, systems and accessories, power plants, avionics, materials like castings, rolled rings, rubber products, and aerospace which include structures, tanks, and cryogenic engines. Geographically the company derives revenue from India and other countries, of which a majority of revenue is generated from India.
94GF Score
Get the complete analysis for NSE:HAL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:HAL has been successfully added to your 
