IIFL Capital ServicesNSE:IIFLCAPS 84 Gross Margin % is 36.48% as of Mar. 2026, which is 25% below its 10-year median of 48.36. GuruFocus rates NSE:IIFLCAPS with a GF Score™ of 84/100 and a GF Value™ of ₹235.19 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 619 Capital Markets companies, IIFL Capital Services ranks worse than 56.38% on this metric.
NSE:IIFLCAPS's Gross Margin % is ranked worse than 56.38% of 619
companies
in the Capital Markets industry
Industry Median: 49.52
vs NSE:IIFLCAPS: 38.38
IIFL Capital Services had a gross margin of 36.48% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for IIFL Capital Services was -3.40% per year.
IIFL Capital Services (NSE:IIFLCAPS) 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
IIFL Capital Services had a gross margin of 36.48% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
IIFL Capital Services Gross Margin % Related Terms
IIFL Capital Services Gross Margin % Historical Data
* Premium members only.
The historical data trend for IIFL Capital 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.
NSE:IIFLCAPS vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, IIFL Capital 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.
IIFL Capital Services Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IIFL Capital Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where IIFL Capital 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.
IIFL Capital Services (NSE:IIFLCAPS) has a Gross Margin % of 36.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on IIFL Capital Services and its competitors. This is 25% below median its historical median of 48.36. Over the past decade, IIFL Capital Services' Gross Margin % has ranged from 38.38 to 59.28. According to the industry distribution chart, IIFL Capital Services ranks #349 out of 619 companies in the Capital Markets industry, placing it in the top 56.4%.
Is IIFL Capital Services' Gross Margin % too high?
IIFL Capital Services' current Gross Margin % of 36.48% is 25% below median its 10-year median of 48.36. Over the past 10 years, this metric has ranged from a low of 38.38 to a high of 59.28. The Capital Markets industry median Gross Margin % is 49.52. IIFL Capital Services' value of 36.48% is 26.3% below this industry median. Based on the distribution chart, IIFL Capital Services ranks #349 out of 619 companies in the Capital Markets industry, which is below the industry midpoint. Overall, IIFL Capital Services has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IIFL Capital Services' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, IIFL Capital Services ranks #349 out of 619 companies for Gross Margin %. This places IIFL Capital Services in the lower half of its industry. The industry median Gross Margin % is 49.52. IIFL Capital Services' value of 36.48% is 26.3% below this benchmark. Historically, IIFL Capital Services' own Gross Margin % has ranged from 38.38 to 59.28 over the past decade. While the company's 10-year median is 48.36 vs. the industry median of 49.52, IIFL Capital 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.52, based on 619 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. IIFL Capital Services's current Gross Margin % of 36.48% is 26.3% 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 IIFL Capital Services and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IIFL Capital Services's current Gross Margin % is 36.48%, which is 25% below median its own 10-year median of 48.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IIFL Capital Services stock overvalued right now?
Based on GuruFocus' analysis, IIFL Capital Services (NSE:IIFLCAPS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹235.19, compared to a current price of ₹338.95 — trading 44.1% above its estimated fair value. The current Gross Margin % is 36.48%, which is 25% below median its 10-year median of 48.36 and 26.3% below the Capital Markets industry median of 49.52. IIFL Capital Services' overall GF Score™ is 84/100 with 9 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 IIFL Capital Services (NSE:IIFLCAPS), the current Gross Margin % is 36.48% 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 IIFL Capital Services (NSE:IIFLCAPS) Overvalued in 2026?
Based on GuruFocus' analysis, IIFL Capital Services stock appears to be overvalued.
The current stock price of ₹338.95 is trading 44.1% above its estimated GF Value™ of ₹235.19.
GuruFocus considers IIFL Capital Services to be Significantly Overvalued.
Key valuation signals for NSE:IIFLCAPS:
Gross Margin %: 36.48% (25% below median its 10-year median of 48.36)
GF Value™: ₹235.19 vs. price of ₹338.95 (44.1% above fair value)
Industry Position: 26.3% below the Capital Markets median (#349 of 619)
No single metric tells the full story. See the NSE:IIFLCAPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IIFL Capital Services Ltd is engaged in retail broking and financial product distribution. It operates as an independent full-service retail and institutional broking firm in India and provides a range of investment advisory and financial services. Its clients include corporates, institutional investors, foreign portfolio investors, mutual funds, insurance companies, alternative investment funds, trusts, high-net-worth individuals, and retail investors. The company's retail brokerage and financial services include financial planning, equity, commodities and currency broking, depository participant services, portfolio advisory, and other investment products. Its institutional equities business provides broking, research, and corporate access services to institutional clients.
84GF Score
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