Onward TechnologiesBOM:517536 +5.23%82 Gross Margin % is 25.59% as of Mar. 2026, which is 4% above its 10-year median of 24.70. GuruFocus rates BOM:517536 with a GF Score™ of 82/100 and a GF Value™ of ₹405.79 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,685 Software companies, Onward Technologies ranks worse than 67.34% 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
Onward Technologies had a gross margin of 25.59% 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.
Onward Technologies Gross Margin % Related Terms
Onward Technologies Gross Margin % Historical Data
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The historical data trend for Onward Technologies'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.
BOM:517536 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Onward Technologies'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.
Onward Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Onward Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Onward Technologies'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.
Onward Technologies (BOM:517536) has a Gross Margin % of 25.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Onward Technologies and its competitors. This is near median its historical median of 24.70. Over the past decade, Onward Technologies' Gross Margin % has ranged from 22.47 to 29.09. According to the industry distribution chart, Onward Technologies ranks #1808 out of 2685 companies in the Software industry, placing it in the top 67.3%.
Is Onward Technologies' Gross Margin % too high?
Onward Technologies' current Gross Margin % of 25.59% is near median its 10-year median of 24.70. Over the past 10 years, this metric has ranged from a low of 22.47 to a high of 29.09. The Software industry median Gross Margin % is 40.45. Onward Technologies' value of 25.59% is 36.7% below this industry median. Based on the distribution chart, Onward Technologies ranks #1808 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Onward Technologies has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Onward Technologies' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Onward Technologies ranks #1808 out of 2685 companies for Gross Margin %. This places Onward Technologies in the lower half of its industry. The industry median Gross Margin % is 40.45. Onward Technologies' value of 25.59% is 36.7% below this benchmark. Historically, Onward Technologies' own Gross Margin % has ranged from 22.47 to 29.09 over the past decade. While the company's 10-year median is 24.70 vs. the industry median of 40.45, Onward Technologies has consistently been below 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 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. Onward Technologies's current Gross Margin % of 25.59% is 36.7% below 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 Onward Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Onward Technologies's current Gross Margin % is 25.59%, which is near median its own 10-year median of 24.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Onward Technologies stock overvalued right now?
Based on GuruFocus' analysis, Onward Technologies (BOM:517536) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹405.79, compared to a current price of ₹283.55 — trading 30.1% below its estimated fair value. The current Gross Margin % is 25.59%, which is near median its 10-year median of 24.70 and 36.7% below the Software industry median of 40.45. Onward Technologies' overall GF Score™ is 82/100 with 1 warning sign 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 Onward Technologies (BOM:517536), the current Gross Margin % is 25.59% 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 Onward Technologies (BOM:517536) Overvalued in 2026?
Based on GuruFocus' analysis, Onward Technologies stock appears to be undervalued.
The current stock price of ₹283.55 is trading 30.1% below its estimated GF Value™ of ₹405.79.
GuruFocus considers Onward Technologies to be Significantly Undervalued.
Key valuation signals for BOM:517536:
Gross Margin %: 25.59% (near median its 10-year median of 24.70)
GF Value™: ₹405.79 vs. price of ₹283.55 (30.1% below fair value)
Industry Position: 36.7% below the Software median (#1808 of 2685)
No single metric tells the full story. See the BOM:517536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Onward Technologies Ltd is an Indian company that is engaged in software development, testing, and integration for partner industries of the future. Its services are Digital Services, Embedded Products & Systems, and Mechanical Product Engineering. Its industries include Automotive, Renewables, Hydro Energy, Construction, Agricultural and Mining Equipment, Rail Transportation, and others. It has one operating segment which is ER&D (Engineering, Research and Development) service and digital services. The majority of the company's revenue comes from India. It also operates outside India.
82GF Score
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