Datamatics Global Services (NSE:DATAMATICS) 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
Datamatics Global Services had a gross margin of 40.95% 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.
Datamatics Global Services Gross Margin % Related Terms
Datamatics Global 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:DATAMATICS vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Datamatics Global 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.
Datamatics Global Services Gross Margin % vs Software Industry
For the Software industry and Technology sector, Datamatics Global Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Datamatics Global 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.
Datamatics Global Services (NSE:DATAMATICS) has a Gross Margin % of 40.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Datamatics Global Services and its competitors. This is near median its historical median of 38.07. Over the past decade, Datamatics Global Services' Gross Margin % has ranged from 34.57 to 41.56. According to the industry distribution chart, Datamatics Global Services ranks #1423 out of 2685 companies in the Software industry, placing it in the top 53%.
Is Datamatics Global Services' Gross Margin % too high?
Datamatics Global Services' current Gross Margin % of 40.95% is near median its 10-year median of 38.07. Over the past 10 years, this metric has ranged from a low of 34.57 to a high of 41.56. The Software industry median Gross Margin % is 40.45. Datamatics Global Services' value of 40.95% is 1.2% above this industry median. Based on the distribution chart, Datamatics Global Services ranks #1423 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Datamatics Global Services has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Datamatics Global Services' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Datamatics Global Services ranks #1423 out of 2685 companies for Gross Margin %. This places Datamatics Global Services in the lower half of its industry. The industry median Gross Margin % is 40.45. Datamatics Global Services' value of 40.95% is 1.2% above this benchmark. Historically, Datamatics Global Services' own Gross Margin % has ranged from 34.57 to 41.56 over the past decade. While the company's 10-year median is 38.07 vs. the industry median of 40.45, Datamatics Global 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 Software company?
The median Gross Margin % among Software companies is 40.45, 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. Datamatics Global Services's current Gross Margin % of 40.95% is 1.2% 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 Datamatics Global Services 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. Datamatics Global Services's current Gross Margin % is 40.95%, which is near median its own 10-year median of 38.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Datamatics Global Services stock overvalued right now?
Based on GuruFocus' analysis, Datamatics Global Services (NSE:DATAMATICS) is currently considered Fairly Valued. The stock's GF Value™ is ₹791.89, compared to a current price of ₹799.80 — trading 1% above its estimated fair value. The current Gross Margin % is 40.95%, which is near median its 10-year median of 38.07 and 1.2% above the Software industry median of 40.45. Datamatics Global Services' overall GF Score™ is 91/100 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 Datamatics Global Services (NSE:DATAMATICS), the current Gross Margin % is 40.95% 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 Datamatics Global Services (NSE:DATAMATICS) Overvalued in 2026?
Based on GuruFocus' analysis, Datamatics Global Services stock appears to be overvalued.
The current stock price of ₹799.80 is trading 1% above its estimated GF Value™ of ₹791.89.
GuruFocus considers Datamatics Global Services to be Fairly Valued.
Key valuation signals for NSE:DATAMATICS:
Gross Margin %: 40.95% (near median its 10-year median of 38.07)
GF Value™: ₹791.89 vs. price of ₹799.80 (1% above fair value)
Industry Position: 1.2% above the Software median (#1423 of 2685)
No single metric tells the full story. See the NSE:DATAMATICS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Datamatics Global Services Ltd is an Information technology(IT) company. The company operates in three segments: Digital Operations, Digital Experiences, and Digital Technologies. The company provides intelligent solutions for data-driven businesses to increase productivity and enhance the customer experience. Its AI-first approach enables enterprises to go deep into Digital to boost their productivity, customer experience, and competitive advantage. It has established products in Intelligent Document Processing, Robotic Process Automation, Digital Content, AI/ML models, Smart Workflows, and Others. The Group's clientele across Banking, Financial Services, Insurance, Manufacturing, Logistics, retail, and Publishing. It has a presence in the USA, UK, Germany, India, and the Philippines.
91GF Score
Get the complete analysis for NSE:DATAMATICS
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:DATAMATICS has been successfully added to your 
