HDB Financial ServicesNSE:HDBFS +1.88%9 Pretax Margin % is 21.34% as of Mar. 2026, which is 6% above its 10-year median of 20.06. GuruFocus rates NSE:HDBFS with a GF Score™ of 9/100. The stock has 3 warning signs investors should review. Among 533 Credit Services companies, HDB Financial Services ranks worse than 51.41% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
HDB Financial Services Pretax Margin % Related Terms
HDB Financial Services Pretax Margin % Historical Data
* Premium members only.
The historical data trend for HDB Financial Services's Pretax 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:HDBFS vs V, MA, AXP: Pretax Margin % Comparison
For the Credit Services subindustry, HDB Financial Services's Pretax Margin %, along with its competitors' market caps and Pretax 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.
HDB Financial Services Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, HDB Financial Services's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where HDB Financial Services's Pretax 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.
HDB Financial Services (NSE:HDBFS) has a Pretax Margin % of 21.34% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on HDB Financial Services and its competitors. This is near median its historical median of 20.06. Over the past decade, HDB Financial Services' Pretax Margin % has ranged from 18.21 to 23.70. According to the industry distribution chart, HDB Financial Services ranks #274 out of 533 companies in the Credit Services industry, placing it in the top 51.4%.
Is HDB Financial Services' Pretax Margin % too high?
HDB Financial Services' current Pretax Margin % of 21.34% is near median its 10-year median of 20.06. Over the past 10 years, this metric has ranged from a low of 18.21 to a high of 23.70. The Credit Services industry median Pretax Margin % is 20.02. HDB Financial Services' value of 21.34% is 6.6% above this industry median. Based on the distribution chart, HDB Financial Services ranks #274 out of 533 companies in the Credit Services industry, which is below the industry midpoint. Overall, HDB Financial Services has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does HDB Financial Services' Pretax Margin % compare to V and MA?
According to the Credit Services industry distribution chart, HDB Financial Services ranks #274 out of 533 companies for Pretax Margin %. This places HDB Financial Services in the lower half of its industry. The industry median Pretax Margin % is 20.02. HDB Financial Services' value of 21.34% is 6.6% above this benchmark. Historically, HDB Financial Services' own Pretax Margin % has ranged from 18.21 to 23.70 over the past decade. While the company's 10-year median is 20.06 vs. the industry median of 20.02, HDB Financial Services 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 Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 20.02, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDB Financial Services's current Pretax Margin % of 21.34% is 6.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on HDB Financial Services and its competitors. For the Credit Services industry, the median Pretax Margin % is 20.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDB Financial Services's current Pretax Margin % is 21.34%, which is near median its own 10-year median of 20.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDB Financial Services stock overvalued right now?
HDB Financial Services (NSE:HDBFS) has a current Pretax Margin % of 21.34%. The current Pretax Margin % is 21.34%, which is near median its 10-year median of 20.06 and 6.6% above the Credit Services industry median of 20.02. HDB Financial Services' overall GF Score™ is 9/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For HDB Financial Services (NSE:HDBFS), the current Pretax Margin % is 21.34% 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.
HDB Financial Services Ltd is a non-banking finance company that provides lending services and business process outsourcing. The company also offers services related to the marketing and promotion of various financial products. Additionally, it provides BPO services that encompass back-office services such as form processing, document verification, finance and accounting services, and correspondence management, as well as front-office services including contact center management, outbound marketing, and collection services. The company's operating segments are: Lending services and BPO services. The majority of its revenue is generated from the Lending services segment, which includes providing finance to retail customers for a variety of purposes. Its operations are concentrated in India.
9GF Score
Get the complete analysis for NSE:HDBFS
Pretax 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:HDBFS has been successfully added to your 