Vedavaag Systems (BOM:533056) Gross Margin %: 88.77% (As of Mar. 2026) — 228% Above Median

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BOM:533056 Vedavaag Systems Ltd BOM:533056
65 GF Score
Price ₹21.63
GF Value ₹76.32
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Vedavaag Systems Gross Margin %?

Vedavaag Systems BOM:533056 -3.99% 65 Gross Margin % is 88.77% as of Mar. 2026, which is 228% above its 10-year median of 27.06. GuruFocus rates BOM:533056 with a GF Score™ of 65/100 and a GF Value™ of ₹76.32 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,685 Software companies, Vedavaag Systems ranks better than 94.6% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Vedavaag Systems's Gross Profit for the three months ended in Mar. 2026 was ₹438 Mil. Vedavaag Systems's Revenue for the three months ended in Mar. 2026 was ₹494 Mil. Therefore, Vedavaag Systems's Gross Margin % for the quarter that ended in Mar. 2026 was 88.77%.


The historical rank and industry rank for Vedavaag Systems's Gross Margin % or its related term are showing as below:

BOM:533056' s Gross Margin % Range Over the Past 10 Years
Min: 17.89   Med: 27.06   Max: 88.44
Current: 88.44


During the past 13 years, the highest Gross Margin % of Vedavaag Systems was 88.44%. The lowest was 17.89%. And the median was 27.06%.

BOM:533056's Gross Margin % is ranked better than
94.6% of 2685 companies
in the Software industry
Industry Median: 40.49 vs BOM:533056: 88.44

Vedavaag Systems had a gross margin of 88.77% for the quarter that ended in Mar. 2026 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vedavaag Systems was 32.00% per year.


Vedavaag Systems  (BOM:533056) 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

Vedavaag Systems had a gross margin of 88.77% 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.


Vedavaag Systems Gross Margin % Related Terms


Vedavaag Systems Gross Margin % Historical Data

* Premium members only.

The historical data trend for Vedavaag Systems'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.

Vedavaag Systems Gross Margin % Chart

Vedavaag Systems Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.11 23.77 23.37 87.44 88.44

Vedavaag Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 88.02 88.69 86.59 89.03 88.77

BOM:533056 vs IBM, ACN, FISV: Gross Margin % Comparison

For the Information Technology Services subindustry, Vedavaag Systems'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.


Vedavaag Systems Gross Margin % vs Software Industry

For the Software industry and Technology sector, Vedavaag Systems's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vedavaag Systems's Gross Margin % falls into.


BOM:533056
65GF Score
Vedavaag Systems Ltd BOM:533056
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Vedavaag Systems Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Vedavaag Systems's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=1136.8 / 1285.414
=(Revenue - Cost of Goods Sold) / Revenue
=(1285.414 - 148.615) / 1285.414
=88.44 %

Vedavaag Systems's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=438.4 / 493.859
=(Revenue - Cost of Goods Sold) / Revenue
=(493.859 - 55.446) / 493.859
=88.77 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 88.77% mean?
Vedavaag Systems (BOM:533056) has a Gross Margin % of 88.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Vedavaag Systems and its competitors. This is 228% above median its historical median of 27.06. Over the past decade, Vedavaag Systems' Gross Margin % has ranged from 17.89 to 88.44. According to the industry distribution chart, Vedavaag Systems ranks #145 out of 2685 companies in the Software industry, placing it in the top 5.4%.
Is Vedavaag Systems' Gross Margin % too high?
Vedavaag Systems' current Gross Margin % of 88.77% is 228% above median its 10-year median of 27.06. Over the past 10 years, this metric has ranged from a low of 17.89 to a high of 88.44. The Software industry median Gross Margin % is 40.49. Vedavaag Systems' value of 88.77% is 119.2% above this industry median. Based on the distribution chart, Vedavaag Systems ranks #145 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Vedavaag Systems has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vedavaag Systems' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Vedavaag Systems ranks #145 out of 2685 companies for Gross Margin %. This places Vedavaag Systems in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.49. Vedavaag Systems' value of 88.77% is 119.2% above this benchmark. Historically, Vedavaag Systems' own Gross Margin % has ranged from 17.89 to 88.44 over the past decade. While the company's 10-year median is 27.06 vs. the industry median of 40.49, Vedavaag Systems 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 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. Vedavaag Systems's current Gross Margin % of 88.77% is 119.2% 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 Vedavaag Systems 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. Vedavaag Systems's current Gross Margin % is 88.77%, which is 228% above median its own 10-year median of 27.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vedavaag Systems stock overvalued right now?
Based on GuruFocus' analysis, Vedavaag Systems (BOM:533056) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹76.32, compared to a current price of ₹21.63 — trading 71.7% below its estimated fair value. The current Gross Margin % is 88.77%, which is 228% above median its 10-year median of 27.06 and 119.2% above the Software industry median of 40.49. Vedavaag Systems' overall GF Score™ is 65/100 with 3 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 Vedavaag Systems (BOM:533056), the current Gross Margin % is 88.77% 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 Vedavaag Systems (BOM:533056) Overvalued in 2026?

Based on GuruFocus' analysis, Vedavaag Systems stock appears to be undervalued. The current stock price of ₹21.63 is trading 71.7% below its estimated GF Value™ of ₹76.32. GuruFocus considers Vedavaag Systems to be Significantly Undervalued.

Key valuation signals for BOM:533056:

  • Gross Margin %: 88.77% (228% above median its 10-year median of 27.06)
  • GF Value™: ₹76.32 vs. price of ₹21.63 (71.7% below fair value)
  • GF Score™: 65/100 with 3 warning signs
  • Industry Position: 119.2% above the Software median (#145 of 2685)

No single metric tells the full story. See the BOM:533056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Vedavaag Systems Business Description

Address LN Vesta Road, 3rd Floor Park View, 1-89/G/113 NR, Vittal Rao Nagar, Hitech City, Gafoornagar, Hyderabad, TG, IND, 500081
Vedavaag Systems Ltd is an India-based company engaged in providing information technology sales and services. The company is focusing on three key areas -Governance & Citizen Services, Banking, Finance, and Insurance Services.
65GF Score

Get the complete analysis for BOM:533056

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹21.63
Price
₹76.32
GF Value