Riddhiorate Services (BOM:540590) Gross Margin %: 86.38% (As of Mar. 2026) — 17% Above Median

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BOM:540590 Riddhi Corporate Services Ltd BOM:540590
74 GF Score
Price ₹60.68
GF Value ₹175.97
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Riddhiorate Services Gross Margin %?

Riddhiorate Services BOM:540590 +2.86% 74 Gross Margin % is 86.38% as of Mar. 2026, which is 17% above its 10-year median of 73.67. GuruFocus rates BOM:540590 with a GF Score™ of 74/100 and a GF Value™ of ₹175.97 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,006 Business Services companies, Riddhiorate Services ranks better than 89.46% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Riddhiorate Services's Gross Profit for the three months ended in Mar. 2026 was ₹1,188 Mil. Riddhiorate Services's Revenue for the three months ended in Mar. 2026 was ₹1,375 Mil. Therefore, Riddhiorate Services's Gross Margin % for the quarter that ended in Mar. 2026 was 86.38%.


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

BOM:540590' s Gross Margin % Range Over the Past 10 Years
Min: 56.11   Med: 73.67   Max: 85.47
Current: 84.38


During the past 10 years, the highest Gross Margin % of Riddhiorate Services was 85.47%. The lowest was 56.11%. And the median was 73.67%.

BOM:540590's Gross Margin % is ranked better than
89.46% of 1006 companies
in the Business Services industry
Industry Median: 34.515 vs BOM:540590: 84.38

Riddhiorate Services had a gross margin of 86.38% for the quarter that ended in Mar. 2026 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Riddhiorate Services was 1.20% per year.


Riddhiorate Services  (BOM:540590) 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

Riddhiorate Services had a gross margin of 86.38% 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.


Riddhiorate Services Gross Margin % Related Terms


Riddhiorate Services Gross Margin % Historical Data

* Premium members only.

The historical data trend for Riddhiorate Services'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.

Riddhiorate Services Gross Margin % Chart

Riddhiorate Services 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 71.64 85.47 83.36 60.88 84.38

Riddhiorate Services 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 62.11 80.47 83.81 86.01 86.38

BOM:540590 vs CTAS, CPRT, GPN: Gross Margin % Comparison

For the Specialty Business Services subindustry, Riddhiorate Services'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.


Riddhiorate Services Gross Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, Riddhiorate Services's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Riddhiorate Services's Gross Margin % falls into.


BOM:540590
74GF Score
Riddhi Corporate Services Ltd BOM:540590
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Riddhiorate Services Gross Margin % Calculation

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

Riddhiorate Services'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 )
=4332.4 / 5134.301
=(Revenue - Cost of Goods Sold) / Revenue
=(5134.301 - 801.934) / 5134.301
=84.38 %

Riddhiorate Services'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 )
=1187.8 / 1375.041
=(Revenue - Cost of Goods Sold) / Revenue
=(1375.041 - 187.248) / 1375.041
=86.38 %

* 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 86.38% mean?
Riddhiorate Services (BOM:540590) has a Gross Margin % of 86.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Riddhiorate Services and its competitors. This is 17% above median its historical median of 73.67. Over the past decade, Riddhiorate Services' Gross Margin % has ranged from 56.11 to 85.47. According to the industry distribution chart, Riddhiorate Services ranks #106 out of 1006 companies in the Business Services industry, placing it in the top 10.5%.
Is Riddhiorate Services' Gross Margin % too high?
Riddhiorate Services' current Gross Margin % of 86.38% is 17% above median its 10-year median of 73.67. Over the past 10 years, this metric has ranged from a low of 56.11 to a high of 85.47. The Business Services industry median Gross Margin % is 34.52. Riddhiorate Services' value of 86.38% is 150.3% above this industry median. Based on the distribution chart, Riddhiorate Services ranks #106 out of 1006 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Riddhiorate Services has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Riddhiorate Services' Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Riddhiorate Services ranks #106 out of 1006 companies for Gross Margin %. This places Riddhiorate Services in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.52. Riddhiorate Services' value of 86.38% is 150.3% above this benchmark. Historically, Riddhiorate Services' own Gross Margin % has ranged from 56.11 to 85.47 over the past decade. While the company's 10-year median is 73.67 vs. the industry median of 34.52, Riddhiorate 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 Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.52, based on 1,006 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. Riddhiorate Services's current Gross Margin % of 86.38% is 150.3% 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 Riddhiorate Services and its competitors. For the Business Services industry, the median Gross Margin % is 34.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riddhiorate Services's current Gross Margin % is 86.38%, which is 17% above median its own 10-year median of 73.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riddhiorate Services stock overvalued right now?
Based on GuruFocus' analysis, Riddhiorate Services (BOM:540590) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹175.97, compared to a current price of ₹60.68 — trading 65.5% below its estimated fair value. The current Gross Margin % is 86.38%, which is 17% above median its 10-year median of 73.67 and 150.3% above the Business Services industry median of 34.52. Riddhiorate Services' overall GF Score™ is 74/100 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 Riddhiorate Services (BOM:540590), the current Gross Margin % is 86.38% 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 Riddhiorate Services (BOM:540590) Overvalued in 2026?

Based on GuruFocus' analysis, Riddhiorate Services stock appears to be undervalued. The current stock price of ₹60.68 is trading 65.5% below its estimated GF Value™ of ₹175.97. GuruFocus considers Riddhiorate Services to be Significantly Undervalued.

Key valuation signals for BOM:540590:

  • Gross Margin %: 86.38% (17% above median its 10-year median of 73.67)
  • GF Value™: ₹175.97 vs. price of ₹60.68 (65.5% below fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 150.3% above the Business Services median (#106 of 1006)

No single metric tells the full story. See the BOM:540590 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Riddhiorate Services Business Description

Address Ashram Road, 10, Mill Officers Colony, Behind Old RBI, Opposite Times Of India, Ahmedabad, GJ, IND, 380009
Riddhi Corporate Services Ltd is engaged in data processing, hosting, and related activities. Its other activities include document management and digitization, contact centre, warehousing, address verification, data entry services, and software development. The company serves Telecom, Banking, NBFC, and IT sectors.
74GF Score

Get the complete analysis for BOM:540590

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

₹60.68
Price
₹175.97
GF Value