KCPNSE:KCP -0.19%80 Gross Margin % is 65.55% as of Mar. 2026, which is 6% above its 10-year median of 61.84. GuruFocus rates NSE:KCP with a GF Score™ of 80/100 and a GF Value™ of ₹189.76 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 395 Building Materials companies, KCP ranks better than 88.35% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. KCP's Gross Profit for the
three
months ended in Mar. 2026 was ₹4,482 Mil. KCP's Revenue for the
three
months ended in Mar. 2026 was ₹6,838 Mil. Therefore, KCP's Gross Margin % for the quarter that ended in Mar. 2026 was 65.55%.
Warning Sign:
KCP Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for KCP's Gross Margin % or its related term are showing as below:
NSE:KCP'
s Gross Margin % Range Over the Past 10 Years
Min: 57.1 Med: 61.84 Max: 68.89
Current: 57.1
During the past 13 years, the highestGross Margin % of KCP was 68.89%. The lowest was 57.10%. And the median was 61.84%.
NSE:KCP's Gross Margin % is ranked better than 88.35% of 395
companies
in the Building Materials industry
Industry Median: 26.18
vs NSE:KCP: 57.10
KCP had a gross margin of 65.55% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KCP was -2.60% per year.
KCP (NSE:KCP) 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
KCP had a gross margin of 65.55% 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.
KCP Gross Margin % Related Terms
KCP Gross Margin % Historical Data
* Premium members only.
The historical data trend for KCP'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:KCP vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, KCP'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.
KCP Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, KCP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KCP'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.
KCP (NSE:KCP) has a Gross Margin % of 65.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on KCP and its competitors. This is near median its historical median of 61.84. Over the past decade, KCP's Gross Margin % has ranged from 57.10 to 68.89. According to the industry distribution chart, KCP ranks #46 out of 395 companies in the Building Materials industry, placing it in the top 11.6%.
Is KCP's Gross Margin % too high?
KCP's current Gross Margin % of 65.55% is near median its 10-year median of 61.84. Over the past 10 years, this metric has ranged from a low of 57.10 to a high of 68.89. The Building Materials industry median Gross Margin % is 26.18. KCP's value of 65.55% is 150.4% above this industry median. Based on the distribution chart, KCP ranks #46 out of 395 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, KCP has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does KCP's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, KCP ranks #46 out of 395 companies for Gross Margin %. This places KCP in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.18. KCP's value of 65.55% is 150.4% above this benchmark. Historically, KCP's own Gross Margin % has ranged from 57.10 to 68.89 over the past decade. While the company's 10-year median is 61.84 vs. the industry median of 26.18, KCP 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.18, based on 395 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. KCP's current Gross Margin % of 65.55% is 150.4% 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 KCP and its competitors. For the Building Materials industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KCP's current Gross Margin % is 65.55%, which is near median its own 10-year median of 61.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KCP stock overvalued right now?
Based on GuruFocus' analysis, KCP (NSE:KCP) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹189.76, compared to a current price of ₹169.49 — trading 10.7% below its estimated fair value. The current Gross Margin % is 65.55%, which is near median its 10-year median of 61.84 and 150.4% above the Building Materials industry median of 26.18. KCP's overall GF Score™ is 80/100 with 6 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 KCP (NSE:KCP), the current Gross Margin % is 65.55% 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 KCP (NSE:KCP) Overvalued in 2026?
Based on GuruFocus' analysis, KCP stock appears to be undervalued.
The current stock price of ₹169.49 is trading 10.7% below its estimated GF Value™ of ₹189.76.
GuruFocus considers KCP to be Modestly Undervalued.
Key valuation signals for NSE:KCP:
Gross Margin %: 65.55% (near median its 10-year median of 61.84)
GF Value™: ₹189.76 vs. price of ₹169.49 (10.7% below fair value)
Industry Position: 150.4% above the Building Materials median (#46 of 395)
No single metric tells the full story. See the NSE:KCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KCP Ltd is an investment holding company. The company's operating segment includes Heavy Engineering, Cement, Sugar and Hospitality. It generates maximum revenue from the Cement segment. The company derives revenues majorly from sale of goods comprising Cement, Engineering Job work, Power, Hospitality in the brand name of Mercure.
80GF Score
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