Ramco SystemsNSE:RAMCOSYS +20.00%63 Gross Margin % is 57.48% as of Mar. 2026, which is 6% above its 10-year median of 53.98. GuruFocus rates NSE:RAMCOSYS with a GF Score™ of 63/100 and a GF Value™ of ₹457.94 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,683 Software companies, Ramco Systems ranks better than 65.26% on this metric.
The historical rank and industry rank for Ramco Systems's Gross Margin % or its related term are showing as below:
NSE:RAMCOSYS'
s Gross Margin % Range Over the Past 10 Years
Min: 38.72 Med: 53.98 Max: 57.6
Current: 54.66
During the past 13 years, the highestGross Margin % of Ramco Systems was 57.60%. The lowest was 38.72%. And the median was 53.98%.
NSE:RAMCOSYS's Gross Margin % is ranked better than 65.26% of 2683
companies
in the Software industry
Industry Median: 40.45
vs NSE:RAMCOSYS: 54.66
Ramco Systems had a gross margin of 57.48% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ramco Systems was 0.50% per year.
Ramco Systems (NSE:RAMCOSYS) 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
Ramco Systems had a gross margin of 57.48% 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.
Ramco Systems Gross Margin % Related Terms
Ramco Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ramco Systems'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:RAMCOSYS vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Ramco Systems'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.
Ramco Systems Gross Margin % vs Software Industry
For the Software industry and Technology sector, Ramco Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ramco Systems'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.
Ramco Systems (NSE:RAMCOSYS) has a Gross Margin % of 57.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ramco Systems and its competitors. This is near median its historical median of 53.98. Over the past decade, Ramco Systems' Gross Margin % has ranged from 38.72 to 57.60. According to the industry distribution chart, Ramco Systems ranks #932 out of 2683 companies in the Software industry, placing it in the top 34.7%.
Is Ramco Systems' Gross Margin % too high?
Ramco Systems' current Gross Margin % of 57.48% is near median its 10-year median of 53.98. Over the past 10 years, this metric has ranged from a low of 38.72 to a high of 57.60. The Software industry median Gross Margin % is 40.45. Ramco Systems' value of 57.48% is 42.1% above this industry median. Based on the distribution chart, Ramco Systems ranks #932 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Ramco Systems has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ramco Systems' Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Ramco Systems ranks #932 out of 2683 companies for Gross Margin %. This puts Ramco Systems in the upper half of its industry. The industry median Gross Margin % is 40.45. Ramco Systems' value of 57.48% is 42.1% above this benchmark. Historically, Ramco Systems' own Gross Margin % has ranged from 38.72 to 57.60 over the past decade. While the company's 10-year median is 53.98 vs. the industry median of 40.45, Ramco Systems 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 2,683 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. Ramco Systems's current Gross Margin % of 57.48% is 42.1% 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 Ramco Systems 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. Ramco Systems's current Gross Margin % is 57.48%, which is near median its own 10-year median of 53.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramco Systems stock overvalued right now?
Based on GuruFocus' analysis, Ramco Systems (NSE:RAMCOSYS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹457.94, compared to a current price of ₹673.80 — trading 47.1% above its estimated fair value. The current Gross Margin % is 57.48%, which is near median its 10-year median of 53.98 and 42.1% above the Software industry median of 40.45. Ramco Systems' overall GF Score™ is 63/100 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 Ramco Systems (NSE:RAMCOSYS), the current Gross Margin % is 57.48% 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 Ramco Systems (NSE:RAMCOSYS) Overvalued in 2026?
Based on GuruFocus' analysis, Ramco Systems stock appears to be overvalued.
The current stock price of ₹673.80 is trading 47.1% above its estimated GF Value™ of ₹457.94.
GuruFocus considers Ramco Systems to be Significantly Overvalued.
Key valuation signals for NSE:RAMCOSYS:
Gross Margin %: 57.48% (near median its 10-year median of 53.98)
GF Value™: ₹457.94 vs. price of ₹673.80 (47.1% above fair value)
Industry Position: 42.1% above the Software median (#932 of 2683)
No single metric tells the full story. See the NSE:RAMCOSYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramco Systems Ltd develops software and software products for human capital management, payroll, enterprise resource management, monitoring and evaluation, and maintenance, repair, and overhaul providers in the Aviation industry. The company develops software through its enterprise application assembly and delivery platform Ramco VirtualWorks for transaction systems and Ramco Decision Works for analytics/reporting. The product portfolio of the company includes aviation, aerospace & defense management software, enterprise resource planning software, and payroll & logistics software on the cloud. It as only one operating segment which is Software Solutions & Services.
63GF Score
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