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
IRB Infrastructure Developers had a gross margin of 57.63% 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.
IRB Infrastructure Developers Gross Margin % Related Terms
IRB Infrastructure Developers 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.
For the Infrastructure Operations subindustry, IRB Infrastructure Developers'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.
IRB Infrastructure Developers Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, IRB Infrastructure Developers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where IRB Infrastructure Developers'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.
IRB Infrastructure Developers (NSE:IRB) has a Gross Margin % of 57.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on IRB Infrastructure Developers and its competitors. This is near median its historical median of 57.06. Over the past decade, IRB Infrastructure Developers' Gross Margin % has ranged from 52.33 to 60.88. According to the industry distribution chart, IRB Infrastructure Developers ranks #147 out of 1719 companies in the Construction industry, placing it in the top 8.6%.
Is IRB Infrastructure Developers' Gross Margin % too high?
IRB Infrastructure Developers' current Gross Margin % of 57.63% is near median its 10-year median of 57.06. Over the past 10 years, this metric has ranged from a low of 52.33 to a high of 60.88. The Construction industry median Gross Margin % is 20.71. IRB Infrastructure Developers' value of 57.63% is 178.3% above this industry median. Based on the distribution chart, IRB Infrastructure Developers ranks #147 out of 1719 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, IRB Infrastructure Developers has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does IRB Infrastructure Developers' Gross Margin % compare to competitors?
According to the Construction industry distribution chart, IRB Infrastructure Developers ranks #147 out of 1719 companies for Gross Margin %. This places IRB Infrastructure Developers in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. IRB Infrastructure Developers' value of 57.63% is 178.3% above this benchmark. Historically, IRB Infrastructure Developers' own Gross Margin % has ranged from 52.33 to 60.88 over the past decade. While the company's 10-year median is 57.06 vs. the industry median of 20.71, IRB Infrastructure Developers 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 Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 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. IRB Infrastructure Developers's current Gross Margin % of 57.63% is 178.3% 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 IRB Infrastructure Developers and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IRB Infrastructure Developers's current Gross Margin % is 57.63%, which is near median its own 10-year median of 57.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IRB Infrastructure Developers stock overvalued right now?
Based on GuruFocus' analysis, IRB Infrastructure Developers (NSE:IRB) is currently considered Fairly Valued. The stock's GF Value™ is ₹21.54, compared to a current price of ₹21.63 — trading 0.4% above its estimated fair value. The current Gross Margin % is 57.63%, which is near median its 10-year median of 57.06 and 178.3% above the Construction industry median of 20.71. IRB Infrastructure Developers' overall GF Score™ is 71/100 with 8 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 IRB Infrastructure Developers (NSE:IRB), the current Gross Margin % is 57.63% 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 IRB Infrastructure Developers (NSE:IRB) Overvalued in 2026?
Based on GuruFocus' analysis, IRB Infrastructure Developers stock appears to be overvalued.
The current stock price of ₹21.63 is trading 0.4% above its estimated GF Value™ of ₹21.54.
GuruFocus considers IRB Infrastructure Developers to be Fairly Valued.
Key valuation signals for NSE:IRB:
Gross Margin %: 57.63% (near median its 10-year median of 57.06)
GF Value™: ₹21.54 vs. price of ₹21.63 (0.4% above fair value)
Industry Position: 178.3% above the Construction median (#147 of 1719)
No single metric tells the full story. See the NSE:IRB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IRB Infrastructure Developers Business Description
IRB Infrastructure Developers Ltd is an infrastructure and construction company. The company organizes itself into segments: Built, Operate and Transfer (BOT)/ Toll, Operate and Transfer (TOT) segment consist of operation and maintenance of roads; InvITs & Related Assets segment consists of investments in units of IRB Infrastructure Trust, IRB InvIT Fund and other related assets; and Construction segment consists of development and maintenance of roads. It derives maximum revenue from Construction segment.
71GF Score
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