R Systems InternationalBOM:532735 +2.89%81 Gross Margin % is 37.41% as of Mar. 2026, which is 4% above its 10-year median of 36.01. GuruFocus rates BOM:532735 with a GF Score™ of 81/100 and a GF Value™ of ₹559.95 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,685 Software companies, R Systems International ranks worse than 56.31% on this metric.
BOM:532735's Gross Margin % is ranked worse than 56.31% of 2685
companies
in the Software industry
Industry Median: 40.49
vs BOM:532735: 35.50
R Systems International had a gross margin of 37.41% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for R Systems International was 2.10% per year.
R Systems International (BOM:532735) 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
R Systems International had a gross margin of 37.41% 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.
R Systems International Gross Margin % Related Terms
R Systems International 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.
BOM:532735 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, R Systems International'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.
R Systems International Gross Margin % vs Software Industry
For the Software industry and Technology sector, R Systems International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where R Systems International'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.
R Systems International (BOM:532735) has a Gross Margin % of 37.41% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on R Systems International and its competitors. This is near median its historical median of 36.01. Over the past decade, R Systems International's Gross Margin % has ranged from 29.58 to 38.92. According to the industry distribution chart, R Systems International ranks #1512 out of 2685 companies in the Software industry, placing it in the top 56.3%.
Is R Systems International's Gross Margin % too high?
R Systems International's current Gross Margin % of 37.41% is near median its 10-year median of 36.01. Over the past 10 years, this metric has ranged from a low of 29.58 to a high of 38.92. The Software industry median Gross Margin % is 40.49. R Systems International's value of 37.41% is 7.6% below this industry median. Based on the distribution chart, R Systems International ranks #1512 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, R Systems International has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does R Systems International's Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, R Systems International ranks #1512 out of 2685 companies for Gross Margin %. This places R Systems International in the lower half of its industry. The industry median Gross Margin % is 40.49. R Systems International's value of 37.41% is 7.6% below this benchmark. Historically, R Systems International's own Gross Margin % has ranged from 29.58 to 38.92 over the past decade. While the company's 10-year median is 36.01 vs. the industry median of 40.49, R Systems International 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 40.49, 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. R Systems International's current Gross Margin % of 37.41% is 7.6% 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 R Systems International and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. R Systems International's current Gross Margin % is 37.41%, which is near median its own 10-year median of 36.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is R Systems International stock overvalued right now?
Based on GuruFocus' analysis, R Systems International (BOM:532735) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹559.95, compared to a current price of ₹241.95 — trading 56.8% below its estimated fair value. The current Gross Margin % is 37.41%, which is near median its 10-year median of 36.01 and 7.6% below the Software industry median of 40.49. R Systems International's overall GF Score™ is 81/100 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 R Systems International (BOM:532735), the current Gross Margin % is 37.41% 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 R Systems International (BOM:532735) Overvalued in 2026?
Based on GuruFocus' analysis, R Systems International stock appears to be undervalued.
The current stock price of ₹241.95 is trading 56.8% below its estimated GF Value™ of ₹559.95.
GuruFocus considers R Systems International to be Significantly Undervalued.
Key valuation signals for BOM:532735:
Gross Margin %: 37.41% (near median its 10-year median of 36.01)
GF Value™: ₹559.95 vs. price of ₹241.95 (56.8% below fair value)
Industry Position: 7.6% below the Software median (#1512 of 2685)
No single metric tells the full story. See the BOM:532735 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
R Systems International Ltd provides IT services and solutions. The company designs and builds next-gen products, platforms, and digital experiences for its clients. It is organized into two business segments, Information technology services which is the key revenue generating segment, and Business process outsourcing services. The company serves IT services and solutions to telecom and digital media, healthcare, manufacturing, government services, and banking and finance industries. It earns income from five principal geographic territories: North America, Europe, South East Asian countries (SEAC), India, and others, with key revenue derived from North America.
81GF Score
Get the complete analysis for BOM:532735
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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