Indian Railway Catering And Tourism (NSE:IRCTC) 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
Indian Railway Catering And Tourism had a gross margin of 33.84% 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.
Indian Railway Catering And Tourism Gross Margin % Related Terms
Indian Railway Catering And Tourism 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.
Indian Railway Catering And Tourism Gross Margin % Chart
NSE:IRCTC vs BKNG, ABNB, RCL: Gross Margin % Comparison
For the Travel Services subindustry, Indian Railway Catering And Tourism'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.
Indian Railway Catering And Tourism Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Indian Railway Catering And Tourism's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Indian Railway Catering And Tourism'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.
Indian Railway Catering And Tourism (NSE:IRCTC) has a Gross Margin % of 33.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Indian Railway Catering And Tourism and its competitors. This is near median its historical median of 35.62. Over the past decade, Indian Railway Catering And Tourism's Gross Margin % has ranged from 26.61 to 51.10. According to the industry distribution chart, Indian Railway Catering And Tourism ranks #501 out of 792 companies in the Travel & Leisure industry, placing it in the top 63.3%.
Is Indian Railway Catering And Tourism's Gross Margin % too high?
Indian Railway Catering And Tourism's current Gross Margin % of 33.84% is near median its 10-year median of 35.62. Over the past 10 years, this metric has ranged from a low of 26.61 to a high of 51.10. The Travel & Leisure industry median Gross Margin % is 43.97. Indian Railway Catering And Tourism's value of 33.84% is 23% below this industry median. Based on the distribution chart, Indian Railway Catering And Tourism ranks #501 out of 792 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Indian Railway Catering And Tourism has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Catering And Tourism's Gross Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Indian Railway Catering And Tourism ranks #501 out of 792 companies for Gross Margin %. This places Indian Railway Catering And Tourism in the lower half of its industry. The industry median Gross Margin % is 43.97. Indian Railway Catering And Tourism's value of 33.84% is 23% below this benchmark. Historically, Indian Railway Catering And Tourism's own Gross Margin % has ranged from 26.61 to 51.10 over the past decade. While the company's 10-year median is 35.62 vs. the industry median of 43.97, Indian Railway Catering And Tourism 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.97, based on 792 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. Indian Railway Catering And Tourism's current Gross Margin % of 33.84% is 23% 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 Indian Railway Catering And Tourism and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Catering And Tourism's current Gross Margin % is 33.84%, which is near median its own 10-year median of 35.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Catering And Tourism stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism (NSE:IRCTC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹948.22, compared to a current price of ₹502.90 — trading 47% below its estimated fair value. The current Gross Margin % is 33.84%, which is near median its 10-year median of 35.62 and 23% below the Travel & Leisure industry median of 43.97. Indian Railway Catering And Tourism's overall GF Score™ is 91/100 with 2 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 Indian Railway Catering And Tourism (NSE:IRCTC), the current Gross Margin % is 33.84% 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 Indian Railway Catering And Tourism (NSE:IRCTC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism stock appears to be undervalued.
The current stock price of ₹502.90 is trading 47% below its estimated GF Value™ of ₹948.22.
GuruFocus considers Indian Railway Catering And Tourism to be Significantly Undervalued.
Key valuation signals for NSE:IRCTC:
Gross Margin %: 33.84% (near median its 10-year median of 35.62)
GF Value™: ₹948.22 vs. price of ₹502.90 (47% below fair value)
Industry Position: 23% below the Travel & Leisure median (#501 of 792)
No single metric tells the full story. See the NSE:IRCTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Catering And Tourism Business Description
Indian Railway Catering And Tourism Corp Ltd is engaged in catering and hospitality services at stations, on trains, and other locations, and to promote domestic and international tourism through the development of budget hotels, special tour packages, information, and commercial publicity and world-wide reservation systems. The company's segments are Catering, Rail Neer, Internet Ticketing, and Tourism & Train Operation. A vast majority of its revenues are derived from the Catering business.
91GF Score
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