HFCLNSE:HFCL +5.00%55 Operating Margin % is 14.76% as of Mar. 2026, which is 32% above its 10-year median of 11.19. GuruFocus rates NSE:HFCL with a GF Score™ of 55/100 and a GF Value™ of ₹95.41 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,472 Hardware companies, HFCL ranks better than 81.15% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. HFCL's Operating Income for the
three
months ended in Mar. 2026 was ₹2,692 Mil. HFCL's Revenue for the
three
months ended in Mar. 2026 was ₹18,241 Mil. Therefore, HFCL's Operating Margin % for the quarter that ended in Mar. 2026 was 14.76%.
Warning Sign:
HFCL Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for HFCL's Operating Margin % or its related term are showing as below:
NSE:HFCL'
s Operating Margin % Range Over the Past 10 Years
Min: 7.71 Med: 11.19 Max: 13.12
Current: 12.21
NSE:HFCL's Operating Margin % is ranked better than 81.15% of 2472
companies
in the Hardware industry
Industry Median: 3.81
vs NSE:HFCL: 12.21
HFCL's 5-Year Average Operating Margin % Growth Rate was -1.90% per year.
HFCL's Operating Income for the
three
months ended in Mar. 2026 was ₹2,692 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹6,041 Mil.
HFCL (NSE:HFCL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
HFCL Operating Margin % Related Terms
HFCL Operating Margin % Historical Data
* Premium members only.
The historical data trend for HFCL's Operating 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:HFCL vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, HFCL's Operating Margin %, along with its competitors' market caps and Operating 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.
HFCL Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, HFCL's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HFCL's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
HFCL's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
HFCL (NSE:HFCL) has a Operating Margin % of 14.76% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HFCL and its competitors. This is 32% above median its historical median of 11.19. Over the past decade, HFCL's Operating Margin % has ranged from 7.71 to 13.12. According to the industry distribution chart, HFCL ranks #466 out of 2472 companies in the Hardware industry, placing it in the top 18.9%.
Is HFCL's Operating Margin % too high?
HFCL's current Operating Margin % of 14.76% is 32% above median its 10-year median of 11.19. Over the past 10 years, this metric has ranged from a low of 7.71 to a high of 13.12. The Hardware industry median Operating Margin % is 3.81. HFCL's value of 14.76% is 287.4% above this industry median. Based on the distribution chart, HFCL ranks #466 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, HFCL has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HFCL's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, HFCL ranks #466 out of 2472 companies for Operating Margin %. This places HFCL in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. HFCL's value of 14.76% is 287.4% above this benchmark. Historically, HFCL's own Operating Margin % has ranged from 7.71 to 13.12 over the past decade. While the company's 10-year median is 11.19 vs. the industry median of 3.81, HFCL 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HFCL's current Operating Margin % of 14.76% is 287.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on HFCL and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HFCL's current Operating Margin % is 14.76%, which is 32% above median its own 10-year median of 11.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HFCL stock overvalued right now?
Based on GuruFocus' analysis, HFCL (NSE:HFCL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹95.41, compared to a current price of ₹215.00 — trading 125.3% above its estimated fair value. The current Operating Margin % is 14.76%, which is 32% above median its 10-year median of 11.19 and 287.4% above the Hardware industry median of 3.81. HFCL's overall GF Score™ is 55/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For HFCL (NSE:HFCL), the current Operating Margin % is 14.76% 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 HFCL (NSE:HFCL) Overvalued in 2026?
Based on GuruFocus' analysis, HFCL stock appears to be overvalued.
The current stock price of ₹215.00 is trading 125.3% above its estimated GF Value™ of ₹95.41.
GuruFocus considers HFCL to be Significantly Overvalued.
Key valuation signals for NSE:HFCL:
Operating Margin %: 14.76% (32% above median its 10-year median of 11.19)
GF Value™: ₹95.41 vs. price of ₹215.00 (125.3% above fair value)
Industry Position: 287.4% above the Hardware median (#466 of 2472)
No single metric tells the full story. See the NSE:HFCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HFCL Ltd is an Indian manufacturer and exporter of optical fiber cables and broadband equipment for the telecommunication industry. Firm business segments include Telecom Products and Turnkey Contracts Services. The Telecom Product segment produces optical fiber cable, optical fiber, and telecom equipment. The Turnkey Contracts and services segment is engaged in delivering telecom infrastructure and communication network systems for Telecom Operators, Defence Services, Railways, Safe and Smart Cities, etc. The firm's products and solutions include Fiber optics, Telecommunication, Defence, and Passive Networking Components. It generates substantial revenue from the sale of turnkey projects and related activities.
55GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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