One97 CommunicationsNSE:PAYTM +0.66%69 Gross Margin % is 29.06% as of Mar. 2026, which is 814% above its 10-year median of 3.18. GuruFocus rates NSE:PAYTM with a GF Score™ of 69/100 and a GF Value™ of ₹946.34 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,681 Software companies, One97 Communications ranks worse than 64.68% 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
One97 Communications had a gross margin of 29.06% 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.
One97 Communications Gross Margin % Related Terms
One97 Communications Gross Margin % Historical Data
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The historical data trend for One97 Communications'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:PAYTM vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, One97 Communications'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.
One97 Communications Gross Margin % vs Software Industry
For the Software industry and Technology sector, One97 Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where One97 Communications'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.
One97 Communications (NSE:PAYTM) has a Gross Margin % of 29.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on One97 Communications and its competitors. This is 814% above median its historical median of 3.18. According to the industry distribution chart, One97 Communications ranks #1734 out of 2681 companies in the Software industry, placing it in the top 64.7%.
Is One97 Communications' Gross Margin % too high?
One97 Communications' current Gross Margin % of 29.06% is 814% above median its 10-year median of 3.18. The Software industry median Gross Margin % is 40.41. One97 Communications' value of 29.06% is 28.1% below this industry median. Based on the distribution chart, One97 Communications ranks #1734 out of 2681 companies in the Software industry, which is below the industry midpoint. Overall, One97 Communications has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does One97 Communications' Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, One97 Communications ranks #1734 out of 2681 companies for Gross Margin %. This places One97 Communications in the lower half of its industry. The industry median Gross Margin % is 40.41. One97 Communications' value of 29.06% is 28.1% below this benchmark. While the company's 10-year median is 3.18 vs. the industry median of 40.41, One97 Communications 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 Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 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. One97 Communications's current Gross Margin % of 29.06% is 28.1% 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 One97 Communications and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. One97 Communications's current Gross Margin % is 29.06%, which is 814% above median its own 10-year median of 3.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is One97 Communications stock overvalued right now?
Based on GuruFocus' analysis, One97 Communications (NSE:PAYTM) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹946.34, compared to a current price of ₹1,221.40 — trading 29.1% above its estimated fair value. The current Gross Margin % is 29.06%, which is 814% above median its 10-year median of 3.18 and 28.1% below the Software industry median of 40.41. One97 Communications' overall GF Score™ is 69/100 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 One97 Communications (NSE:PAYTM), the current Gross Margin % is 29.06% 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 One97 Communications (NSE:PAYTM) Overvalued in 2026?
Based on GuruFocus' analysis, One97 Communications stock appears to be overvalued.
The current stock price of ₹1,221.40 is trading 29.1% above its estimated GF Value™ of ₹946.34.
GuruFocus considers One97 Communications to be Modestly Overvalued.
Key valuation signals for NSE:PAYTM:
Gross Margin %: 29.06% (814% above median its 10-year median of 3.18)
GF Value™: ₹946.34 vs. price of ₹1,221.40 (29.1% above fair value)
Industry Position: 28.1% below the Software median (#1734 of 2681)
No single metric tells the full story. See the NSE:PAYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
One97 Communications Ltd is a digital ecosystem for consumers and merchants. The company is in the business of providing a) payment and financial services which mainly include payment facilitator services, facilitation of consumer and merchant loan distribution to consumers and merchants, wealth management, etc. b) marketing services which consist of aggregator for digital products, ticketing business, providing voice and messaging platforms to the telecom operators and enterprise customers and other businesses. The group generates the majority of its revenue from customers domiciled in India.
69GF Score
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