Hinduja Global SolutionsNSE:HGS -1.14%60 Gross Margin % is 97.50% as of Mar. 2026, which is 1% below its 10-year median of 98.62. GuruFocus rates NSE:HGS with a GF Score™ of 60/100 and a GF Value™ of ₹737.86 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,007 Business Services companies, Hinduja Global Solutions ranks better than 96.52% on this metric.
Hinduja Global Solutions (NSE:HGS) 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
Hinduja Global Solutions had a gross margin of 97.50% 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.
Hinduja Global Solutions Gross Margin % Related Terms
Hinduja Global Solutions Gross Margin % Historical Data
* 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:HGS vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, Hinduja Global Solutions'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.
Hinduja Global Solutions Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Hinduja Global Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hinduja Global Solutions'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.
Hinduja Global Solutions (NSE:HGS) has a Gross Margin % of 97.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hinduja Global Solutions and its competitors. This is near median its historical median of 98.62. Over the past decade, Hinduja Global Solutions' Gross Margin % has ranged from 32.55 to 98.98. According to the industry distribution chart, Hinduja Global Solutions ranks #35 out of 1007 companies in the Business Services industry, placing it in the top 3.5%.
Is Hinduja Global Solutions' Gross Margin % too high?
Hinduja Global Solutions' current Gross Margin % of 97.50% is near median its 10-year median of 98.62. Over the past 10 years, this metric has ranged from a low of 32.55 to a high of 98.98. The Business Services industry median Gross Margin % is 34.50. Hinduja Global Solutions' value of 97.50% is 182.6% above this industry median. Based on the distribution chart, Hinduja Global Solutions ranks #35 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Hinduja Global Solutions has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hinduja Global Solutions' Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Hinduja Global Solutions ranks #35 out of 1007 companies for Gross Margin %. This places Hinduja Global Solutions in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.50. Hinduja Global Solutions' value of 97.50% is 182.6% above this benchmark. Historically, Hinduja Global Solutions' own Gross Margin % has ranged from 32.55 to 98.98 over the past decade. While the company's 10-year median is 98.62 vs. the industry median of 34.50, Hinduja Global Solutions 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 Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 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. Hinduja Global Solutions's current Gross Margin % of 97.50% is 182.6% 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 Hinduja Global Solutions and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hinduja Global Solutions's current Gross Margin % is 97.50%, which is near median its own 10-year median of 98.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hinduja Global Solutions stock overvalued right now?
Based on GuruFocus' analysis, Hinduja Global Solutions (NSE:HGS) is currently considered Possible Value Trap. The stock's GF Value™ is ₹737.86, compared to a current price of ₹420.25 — trading 43% below its estimated fair value. The current Gross Margin % is 97.50%, which is near median its 10-year median of 98.62 and 182.6% above the Business Services industry median of 34.50. Hinduja Global Solutions' overall GF Score™ is 60/100 with 4 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 Hinduja Global Solutions (NSE:HGS), the current Gross Margin % is 97.50% 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 Hinduja Global Solutions (NSE:HGS) Overvalued in 2026?
Based on GuruFocus' analysis, Hinduja Global Solutions stock appears to be undervalued.
The current stock price of ₹420.25 is trading 43% below its estimated GF Value™ of ₹737.86.
GuruFocus considers Hinduja Global Solutions to be Possible Value Trap.
Key valuation signals for NSE:HGS:
Gross Margin %: 97.50% (near median its 10-year median of 98.62)
GF Value™: ₹737.86 vs. price of ₹420.25 (43% below fair value)
Industry Position: 182.6% above the Business Services median (#35 of 1007)
No single metric tells the full story. See the NSE:HGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hinduja Global Solutions Ltd is engaged in Business Process Management and Media and Communication business. Business Process Management segment offer voice and non-voice based services such as contact center solutions and back office transaction processing across America, Canada, Europe, Asia and Middle East. Its Digital, Media & Communications business, is India's integrated Digital Delivery Platforms Company delivering services via satellite, digital cable and broadband to over 5 million customers across 1,500 cities and towns.
60GF Score
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