NetSol TechnologiesKAR:NETSOL +2.00%77 Gross Margin % is 58.53% as of Mar. 2026, which is 67% above its 10-year median of 35.02. GuruFocus rates KAR:NETSOL with a GF Score™ of 77/100 and a GF Value™ of ₨177.33 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,683 Software companies, NetSol Technologies ranks better than 62.95% 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
NetSol Technologies had a gross margin of 58.53% 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.
NetSol Technologies Gross Margin % Related Terms
NetSol Technologies Gross Margin % Historical Data
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The historical data trend for NetSol 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.
KAR:NETSOL vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, NetSol 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.
NetSol Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, NetSol Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NetSol 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.
NetSol Technologies (KAR:NETSOL) has a Gross Margin % of 58.53% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NetSol Technologies and its competitors. This is 67% above median its historical median of 35.02. Over the past decade, NetSol Technologies' Gross Margin % has ranged from 27.60 to 51.77. According to the industry distribution chart, NetSol Technologies ranks #994 out of 2683 companies in the Software industry, placing it in the top 37%.
Is NetSol Technologies' Gross Margin % too high?
NetSol Technologies' current Gross Margin % of 58.53% is 67% above median its 10-year median of 35.02. Over the past 10 years, this metric has ranged from a low of 27.60 to a high of 51.77. The Software industry median Gross Margin % is 40.45. NetSol Technologies' value of 58.53% is 44.7% above this industry median. Based on the distribution chart, NetSol Technologies ranks #994 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, NetSol Technologies has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NetSol Technologies' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, NetSol Technologies ranks #994 out of 2683 companies for Gross Margin %. This puts NetSol Technologies in the upper half of its industry. The industry median Gross Margin % is 40.45. NetSol Technologies' value of 58.53% is 44.7% above this benchmark. Historically, NetSol Technologies' own Gross Margin % has ranged from 27.60 to 51.77 over the past decade. While the company's 10-year median is 35.02 vs. the industry median of 40.45, NetSol Technologies 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 40.45, based on 2,683 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. NetSol Technologies's current Gross Margin % of 58.53% is 44.7% 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 NetSol 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. NetSol Technologies's current Gross Margin % is 58.53%, which is 67% above median its own 10-year median of 35.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetSol Technologies stock overvalued right now?
Based on GuruFocus' analysis, NetSol Technologies (KAR:NETSOL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨177.33, compared to a current price of ₨134.47 — trading 24.2% below its estimated fair value. The current Gross Margin % is 58.53%, which is 67% above median its 10-year median of 35.02 and 44.7% above the Software industry median of 40.45. NetSol Technologies' overall GF Score™ is 77/100 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 NetSol Technologies (KAR:NETSOL), the current Gross Margin % is 58.53% 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 NetSol Technologies (KAR:NETSOL) Overvalued in 2026?
Based on GuruFocus' analysis, NetSol Technologies stock appears to be undervalued.
The current stock price of ₨134.47 is trading 24.2% below its estimated GF Value™ of ₨177.33.
GuruFocus considers NetSol Technologies to be Modestly Undervalued.
Key valuation signals for KAR:NETSOL:
Gross Margin %: 58.53% (67% above median its 10-year median of 35.02)
GF Value™: ₨177.33 vs. price of ₨134.47 (24.2% below fair value)
Industry Position: 44.7% above the Software median (#994 of 2683)
No single metric tells the full story. See the KAR:NETSOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetSol Technologies Ltd provides Information Technology services & enterprise solutions. It provides solutions for leasing and finance, healthcare technology, insurance, and e-Procurement. Its products include Enterprise Solutions, Business Intelligence, IT Consulting & Business Process Reengineering, Technology & Business Process Outsourcing, Application Development & Maintenance, Cloud Services. Its operating segments are product-based solutions and ancillary services, professional services, and business process outsourcing. Geographically, it operates in Pakistan, Asia Pacific, Australia & the USA, the UK, and other countries.
77GF Score
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