Indian Railway FinanceNSE:IRFC -1.26%70 Gross Margin % is 24.60% as of Mar. 2026, which is 57% below its 10-year median of 57.72. GuruFocus rates NSE:IRFC with a GF Score™ of 70/100 and a GF Value™ of ₹127.60 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 387 Credit Services companies, Indian Railway Finance ranks worse than 77.52% on this metric.
NSE:IRFC's Gross Margin % is ranked worse than 77.52% of 387
companies
in the Credit Services industry
Industry Median: 51.88
vs NSE:IRFC: 26.55
Indian Railway Finance had a gross margin of 24.60% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Indian Railway Finance was -18.70% per year.
Indian Railway Finance (NSE:IRFC) 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 Finance had a gross margin of 24.60% 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 Finance Gross Margin % Related Terms
Indian Railway Finance Gross Margin % Historical Data
* Premium members only.
The historical data trend for Indian Railway Finance'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.
For the Credit Services subindustry, Indian Railway Finance'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 Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance'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 Finance (NSE:IRFC) has a Gross Margin % of 24.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Indian Railway Finance and its competitors. This is 57% below median its historical median of 57.72. Over the past decade, Indian Railway Finance's Gross Margin % has ranged from 24.45 to 97.07. According to the industry distribution chart, Indian Railway Finance ranks #300 out of 387 companies in the Credit Services industry, placing it in the top 77.5%.
Is Indian Railway Finance's Gross Margin % too high?
Indian Railway Finance's current Gross Margin % of 24.60% is 57% below median its 10-year median of 57.72. Over the past 10 years, this metric has ranged from a low of 24.45 to a high of 97.07. The Credit Services industry median Gross Margin % is 51.88. Indian Railway Finance's value of 24.60% is 52.6% below this industry median. Based on the distribution chart, Indian Railway Finance ranks #300 out of 387 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #300 out of 387 companies for Gross Margin %. This places Indian Railway Finance in the lower half of its industry. The industry median Gross Margin % is 51.88. Indian Railway Finance's value of 24.60% is 52.6% below this benchmark. Historically, Indian Railway Finance's own Gross Margin % has ranged from 24.45 to 97.07 over the past decade. While the company's 10-year median is 57.72 vs. the industry median of 51.88, Indian Railway Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 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 Finance's current Gross Margin % of 24.60% is 52.6% 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 Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current Gross Margin % is 24.60%, which is 57% below median its own 10-year median of 57.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹127.60, compared to a current price of ₹90.61 — trading 29% below its estimated fair value. The current Gross Margin % is 24.60%, which is 57% below median its 10-year median of 57.72 and 52.6% below the Credit Services industry median of 51.88. Indian Railway Finance's overall GF Score™ is 70/100 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 Indian Railway Finance (NSE:IRFC), the current Gross Margin % is 24.60% 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 Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹90.61 is trading 29% below its estimated GF Value™ of ₹127.60.
GuruFocus considers Indian Railway Finance to be Modestly Undervalued.
Key valuation signals for NSE:IRFC:
Gross Margin %: 24.60% (57% below median its 10-year median of 57.72)
GF Value™: ₹127.60 vs. price of ₹90.61 (29% below fair value)
Industry Position: 52.6% below the Credit Services median (#300 of 387)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
70GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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