L&T Technology ServicesNSE:LTTS 95 Gross Margin % is 41.16% as of Mar. 2026, which is 30% above its 10-year median of 31.63. GuruFocus rates NSE:LTTS with a GF Score™ of 95/100 and a GF Value™ of ₹5,235.19 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,680 Software companies, L&T Technology Services ranks better than 53.96% on this metric.
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
L&T Technology Services had a gross margin of 41.16% 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.
L&T Technology Services Gross Margin % Related Terms
L&T Technology Services 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.
NSE:LTTS vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, L&T Technology 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.
L&T Technology Services Gross Margin % vs Software Industry
For the Software industry and Technology sector, L&T Technology Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where L&T Technology 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.
L&T Technology Services (NSE:LTTS) has a Gross Margin % of 41.16% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on L&T Technology Services and its competitors. This is 30% above median its historical median of 31.63. Over the past decade, L&T Technology Services' Gross Margin % has ranged from 27.25 to 43.95. According to the industry distribution chart, L&T Technology Services ranks #1234 out of 2680 companies in the Software industry, placing it in the top 46%.
Is L&T Technology Services' Gross Margin % too high?
L&T Technology Services' current Gross Margin % of 41.16% is 30% above median its 10-year median of 31.63. Over the past 10 years, this metric has ranged from a low of 27.25 to a high of 43.95. The Software industry median Gross Margin % is 40.45. L&T Technology Services' value of 41.16% is 1.8% above this industry median. Based on the distribution chart, L&T Technology Services ranks #1234 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, L&T Technology Services has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does L&T Technology Services' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, L&T Technology Services ranks #1234 out of 2680 companies for Gross Margin %. This puts L&T Technology Services in the upper half of its industry. The industry median Gross Margin % is 40.45. L&T Technology Services' value of 41.16% is 1.8% above this benchmark. Historically, L&T Technology Services' own Gross Margin % has ranged from 27.25 to 43.95 over the past decade. While the company's 10-year median is 31.63 vs. the industry median of 40.45, L&T Technology Services 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 Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,680 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. L&T Technology Services's current Gross Margin % of 41.16% is 1.8% 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 L&T Technology Services and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L&T Technology Services's current Gross Margin % is 41.16%, which is 30% above median its own 10-year median of 31.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L&T Technology Services stock overvalued right now?
Based on GuruFocus' analysis, L&T Technology Services (NSE:LTTS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹5,235.19, compared to a current price of ₹3,322.40 — trading 36.5% below its estimated fair value. The current Gross Margin % is 41.16%, which is 30% above median its 10-year median of 31.63 and 1.8% above the Software industry median of 40.45. L&T Technology Services' overall GF Score™ is 95/100 with 3 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 L&T Technology Services (NSE:LTTS), the current Gross Margin % is 41.16% 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 L&T Technology Services (NSE:LTTS) Overvalued in 2026?
Based on GuruFocus' analysis, L&T Technology Services stock appears to be undervalued.
The current stock price of ₹3,322.40 is trading 36.5% below its estimated GF Value™ of ₹5,235.19.
GuruFocus considers L&T Technology Services to be Significantly Undervalued.
Key valuation signals for NSE:LTTS:
Gross Margin %: 41.16% (30% above median its 10-year median of 31.63)
GF Value™: ₹5,235.19 vs. price of ₹3,322.40 (36.5% below fair value)
Industry Position: 1.8% above the Software median (#1234 of 2680)
No single metric tells the full story. See the NSE:LTTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L&T Technology Services Ltd is a provider of engineering and research services in connection to embedded systems and other engineering support services. The company's operating segments include Mobility, Sustainability and Tech. It derives the majority of its revenue from the Sustainability segment. Geographically, it derives a majority of its revenue from North America, while it also has its presence in Europe, India, and Rest of the world. The services provided by the company are Digital engineering & consulting, Product consulting, Manufacturing engineering, and Plant engineering.
95GF Score
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