Mahanagar Telephone NigamNSE:MTNL -1.45%59 Gross Margin % is 91.99% as of Mar. 2026, which is 12% above its 10-year median of 81.98. GuruFocus rates NSE:MTNL with a GF Score™ of 59/100 and a GF Value™ of ₹44.98 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 341 Telecommunication Services companies, Mahanagar Telephone Nigam ranks better than 94.43% on this metric.
NSE:MTNL's Gross Margin % is ranked better than 94.43% of 341
companies
in the Telecommunication Services industry
Industry Median: 51.52
vs NSE:MTNL: 88.85
Mahanagar Telephone Nigam had a gross margin of 91.99% for the quarter that ended in Mar. 2026 => Durable competitive advantage
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
Mahanagar Telephone Nigam had a gross margin of 91.99% 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.
Mahanagar Telephone Nigam Gross Margin % Related Terms
Mahanagar Telephone Nigam 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:MTNL vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, Mahanagar Telephone Nigam'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.
Mahanagar Telephone Nigam Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Mahanagar Telephone Nigam's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mahanagar Telephone Nigam'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.
Mahanagar Telephone Nigam (NSE:MTNL) has a Gross Margin % of 91.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mahanagar Telephone Nigam and its competitors. This is 12% above median its historical median of 81.98. Over the past decade, Mahanagar Telephone Nigam's Gross Margin % has ranged from 79.87 to 90.39. According to the industry distribution chart, Mahanagar Telephone Nigam ranks #19 out of 341 companies in the Telecommunication Services industry, placing it in the top 5.6%.
Is Mahanagar Telephone Nigam's Gross Margin % too high?
Mahanagar Telephone Nigam's current Gross Margin % of 91.99% is 12% above median its 10-year median of 81.98. Over the past 10 years, this metric has ranged from a low of 79.87 to a high of 90.39. The Telecommunication Services industry median Gross Margin % is 51.52. Mahanagar Telephone Nigam's value of 91.99% is 78.6% above this industry median. Based on the distribution chart, Mahanagar Telephone Nigam ranks #19 out of 341 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Mahanagar Telephone Nigam has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mahanagar Telephone Nigam's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Mahanagar Telephone Nigam ranks #19 out of 341 companies for Gross Margin %. This places Mahanagar Telephone Nigam in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.52. Mahanagar Telephone Nigam's value of 91.99% is 78.6% above this benchmark. Historically, Mahanagar Telephone Nigam's own Gross Margin % has ranged from 79.87 to 90.39 over the past decade. While the company's 10-year median is 81.98 vs. the industry median of 51.52, Mahanagar Telephone Nigam 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.52, based on 341 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. Mahanagar Telephone Nigam's current Gross Margin % of 91.99% is 78.6% 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 Mahanagar Telephone Nigam and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahanagar Telephone Nigam's current Gross Margin % is 91.99%, which is 12% above median its own 10-year median of 81.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mahanagar Telephone Nigam stock overvalued right now?
Based on GuruFocus' analysis, Mahanagar Telephone Nigam (NSE:MTNL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹44.98, compared to a current price of ₹30.00 — trading 33.3% below its estimated fair value. The current Gross Margin % is 91.99%, which is 12% above median its 10-year median of 81.98 and 78.6% above the Telecommunication Services industry median of 51.52. Mahanagar Telephone Nigam's overall GF Score™ is 59/100 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 Mahanagar Telephone Nigam (NSE:MTNL), the current Gross Margin % is 91.99% 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 Mahanagar Telephone Nigam (NSE:MTNL) Overvalued in 2026?
Based on GuruFocus' analysis, Mahanagar Telephone Nigam stock appears to be undervalued.
The current stock price of ₹30.00 is trading 33.3% below its estimated GF Value™ of ₹44.98.
GuruFocus considers Mahanagar Telephone Nigam to be Possible Value Trap.
Key valuation signals for NSE:MTNL:
Gross Margin %: 91.99% (12% above median its 10-year median of 81.98)
GF Value™: ₹44.98 vs. price of ₹30.00 (33.3% below fair value)
Industry Position: 78.6% above the Telecommunication Services median (#19 of 341)
No single metric tells the full story. See the NSE:MTNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mahanagar Telephone Nigam Ltd is an India-based company that provides telecommunications services. The company's operating segment includes the Basic and Cellular segments. It generates maximum revenue from the Basic segment. The company offers various telecom services, including fixed telephone service, GSM (including 3G services), Internet, Broadband, ISDN, and Leased Line services.
59GF Score
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