Allied Digital ServicesNSE:ADSL -1.21%77 Gross Margin % is 18.39% as of Mar. 2026, which is 30% below its 10-year median of 26.29. GuruFocus rates NSE:ADSL with a GF Score™ of 77/100 and a GF Value™ of ₹213.89 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,681 Software companies, Allied Digital Services ranks worse than 80.87% on this metric.
NSE:ADSL's Gross Margin % is ranked worse than 80.87% of 2681
companies
in the Software industry
Industry Median: 40.41
vs NSE:ADSL: 19.03
Allied Digital Services had a gross margin of 18.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Allied Digital Services was -6.00% per year.
Allied Digital Services (NSE:ADSL) 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
Allied Digital Services had a gross margin of 18.39% for the quarter that ended in Mar. 2026 => No sustainable 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.
Allied Digital Services Gross Margin % Related Terms
Allied Digital Services 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.
NSE:ADSL vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Allied Digital 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.
Allied Digital Services Gross Margin % vs Software Industry
For the Software industry and Technology sector, Allied Digital Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Allied Digital Services'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.
Allied Digital Services (NSE:ADSL) has a Gross Margin % of 18.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Allied Digital Services and its competitors. This is 30% below median its historical median of 26.29. Over the past decade, Allied Digital Services' Gross Margin % has ranged from 19.03 to 36.54. According to the industry distribution chart, Allied Digital Services ranks #2168 out of 2681 companies in the Software industry, placing it in the top 80.9%.
Is Allied Digital Services' Gross Margin % too high?
Allied Digital Services' current Gross Margin % of 18.39% is 30% below median its 10-year median of 26.29. Over the past 10 years, this metric has ranged from a low of 19.03 to a high of 36.54. The Software industry median Gross Margin % is 40.41. Allied Digital Services' value of 18.39% is 54.5% below this industry median. Based on the distribution chart, Allied Digital Services ranks #2168 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Allied Digital Services has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allied Digital Services' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Allied Digital Services ranks #2168 out of 2681 companies for Gross Margin %. This places Allied Digital Services in the lower half of its industry. The industry median Gross Margin % is 40.41. Allied Digital Services' value of 18.39% is 54.5% below this benchmark. Historically, Allied Digital Services' own Gross Margin % has ranged from 19.03 to 36.54 over the past decade. While the company's 10-year median is 26.29 vs. the industry median of 40.41, Allied Digital Services 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 40.41, based on 2,681 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. Allied Digital Services's current Gross Margin % of 18.39% is 54.5% 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 Allied Digital Services and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Digital Services's current Gross Margin % is 18.39%, which is 30% below median its own 10-year median of 26.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Digital Services stock overvalued right now?
Based on GuruFocus' analysis, Allied Digital Services (NSE:ADSL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹213.89, compared to a current price of ₹124.63 — trading 41.7% below its estimated fair value. The current Gross Margin % is 18.39%, which is 30% below median its 10-year median of 26.29 and 54.5% below the Software industry median of 40.41. Allied Digital Services' overall GF Score™ is 77/100 with 4 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 Allied Digital Services (NSE:ADSL), the current Gross Margin % is 18.39% 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 Allied Digital Services (NSE:ADSL) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Digital Services stock appears to be undervalued.
The current stock price of ₹124.63 is trading 41.7% below its estimated GF Value™ of ₹213.89.
GuruFocus considers Allied Digital Services to be Significantly Undervalued.
Key valuation signals for NSE:ADSL:
Gross Margin %: 18.39% (30% below median its 10-year median of 26.29)
GF Value™: ₹213.89 vs. price of ₹124.63 (41.7% below fair value)
Industry Position: 54.5% below the Software median (#2168 of 2681)
No single metric tells the full story. See the NSE:ADSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Digital Services Ltd is an Indian-based information technology service and solutions offering company. The company provides a wide range of information technology and consultancy services such as infrastructure services, end-user IT support, IT asset lifecycle, enterprise applications, and integrated solutions. The company has two reportable segments of its business namely: Services and Solutions, of which maximum revenue is derived from Services segment. Geographically the business presence of the firm is seen across the region of India, the United States, and the UK.
77GF Score
Get the complete analysis for NSE:ADSL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:ADSL has been successfully added to your 
