MphasisNSE:MPHASIS -2.46%92 Gross Margin % is 45.61% as of Mar. 2026, which is 51% above its 10-year median of 30.18. GuruFocus rates NSE:MPHASIS with a GF Score™ of 92/100 and a GF Value™ of ₹3,025.86 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,680 Software companies, Mphasis ranks better than 53.84% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Mphasis's Gross Profit for the
three
months ended in Mar. 2026 was ₹19,351 Mil. Mphasis's Revenue for the
three
months ended in Mar. 2026 was ₹42,427 Mil. Therefore, Mphasis's Gross Margin % for the quarter that ended in Mar. 2026 was 45.61%.
The historical rank and industry rank for Mphasis's Gross Margin % or its related term are showing as below:
NSE:MPHASIS'
s Gross Margin % Range Over the Past 10 Years
Min: 28.2 Med: 30.18 Max: 43.84
Current: 43.84
During the past 13 years, the highestGross Margin % of Mphasis was 43.84%. The lowest was 28.20%. And the median was 30.18%.
NSE:MPHASIS's Gross Margin % is ranked better than 53.84% of 2680
companies
in the Software industry
Industry Median: 40.45
vs NSE:MPHASIS: 43.84
Mphasis had a gross margin of 45.61% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Mphasis was 9.70% per year.
Mphasis (NSE:MPHASIS) 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
Mphasis had a gross margin of 45.61% 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.
Mphasis Gross Margin % Related Terms
Mphasis Gross Margin % Historical Data
* Premium members only.
The historical data trend for Mphasis'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:MPHASIS vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Mphasis'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.
Mphasis Gross Margin % vs Software Industry
For the Software industry and Technology sector, Mphasis's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mphasis'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.
Mphasis (NSE:MPHASIS) has a Gross Margin % of 45.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mphasis and its competitors. This is 51% above median its historical median of 30.18. Over the past decade, Mphasis' Gross Margin % has ranged from 28.20 to 43.84. According to the industry distribution chart, Mphasis ranks #1237 out of 2680 companies in the Software industry, placing it in the top 46.2%.
Is Mphasis' Gross Margin % too high?
Mphasis' current Gross Margin % of 45.61% is 51% above median its 10-year median of 30.18. Over the past 10 years, this metric has ranged from a low of 28.20 to a high of 43.84. The Software industry median Gross Margin % is 40.45. Mphasis' value of 45.61% is 12.8% above this industry median. Based on the distribution chart, Mphasis ranks #1237 out of 2680 companies in the Software industry, which is above the industry midpoint. Overall, Mphasis has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mphasis' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Mphasis ranks #1237 out of 2680 companies for Gross Margin %. This puts Mphasis in the upper half of its industry. The industry median Gross Margin % is 40.45. Mphasis' value of 45.61% is 12.8% above this benchmark. Historically, Mphasis' own Gross Margin % has ranged from 28.20 to 43.84 over the past decade. While the company's 10-year median is 30.18 vs. the industry median of 40.45, Mphasis 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. Mphasis's current Gross Margin % of 45.61% is 12.8% 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 Mphasis 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. Mphasis's current Gross Margin % is 45.61%, which is 51% above median its own 10-year median of 30.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mphasis stock overvalued right now?
Based on GuruFocus' analysis, Mphasis (NSE:MPHASIS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,025.86, compared to a current price of ₹2,207.80 — trading 27% below its estimated fair value. The current Gross Margin % is 45.61%, which is 51% above median its 10-year median of 30.18 and 12.8% above the Software industry median of 40.45. Mphasis' overall GF Score™ is 92/100 with 1 warning sign 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 Mphasis (NSE:MPHASIS), the current Gross Margin % is 45.61% 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 Mphasis (NSE:MPHASIS) Overvalued in 2026?
Based on GuruFocus' analysis, Mphasis stock appears to be undervalued.
The current stock price of ₹2,207.80 is trading 27% below its estimated GF Value™ of ₹3,025.86.
GuruFocus considers Mphasis to be Modestly Undervalued.
Key valuation signals for NSE:MPHASIS:
Gross Margin %: 45.61% (51% above median its 10-year median of 30.18)
GF Value™: ₹3,025.86 vs. price of ₹2,207.80 (27% below fair value)
Industry Position: 12.8% above the Software median (#1237 of 2680)
No single metric tells the full story. See the NSE:MPHASIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mphasis Ltd is an IT solutions provider which offers application development and integration, business process outsourcing, and infrastructure services such as architecture guidance. The company was formed after the merger of the U.S.-based IT consulting company Mphasis and the Indian IT services company BFL Software. Mphasis serves clients in the financial services, healthcare, telecom, retail, logistics, and technology industries. Mphasis operates in India, Americas, EMEA, and Rest of the world. The company operates through its business segments: banking and financial services, insurance, technology media and telecom, logistics and transportation, and others. It derives maximum revenue from banking and financial services.
92GF Score
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