NSE:RELIABLE's Gross Margin % is ranked better than 76.84% of 2677
companies
in the Software industry
Industry Median: 40.49
vs NSE:RELIABLE: 66.85
Reliable Data Services had a gross margin of 8.04% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Reliable Data Services was -20.80% per year.
Reliable Data Services (NSE:RELIABLE) 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
Reliable Data Services had a gross margin of 8.04% for the quarter that ended in Mar. 2026 => No sustainable 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.
Reliable Data Services Gross Margin % Related Terms
Reliable Data Services Gross Margin % Historical Data
* Premium members only.
The historical data trend for Reliable Data Services'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:RELIABLE vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Reliable Data 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.
Reliable Data Services Gross Margin % vs Software Industry
For the Software industry and Technology sector, Reliable Data Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reliable Data 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.
Reliable Data Services (NSE:RELIABLE) has a Gross Margin % of 8.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Reliable Data Services and its competitors. This is 89% below median its historical median of 73.48. Over the past decade, Reliable Data Services' Gross Margin % has ranged from 13.36 to 89.51. According to the industry distribution chart, Reliable Data Services ranks #620 out of 2677 companies in the Software industry, placing it in the top 23.2%.
Is Reliable Data Services' Gross Margin % too high?
Reliable Data Services' current Gross Margin % of 8.04% is 89% below median its 10-year median of 73.48. Over the past 10 years, this metric has ranged from a low of 13.36 to a high of 89.51. The Software industry median Gross Margin % is 40.49. Reliable Data Services' value of 8.04% is 80.1% below this industry median. Based on the distribution chart, Reliable Data Services ranks #620 out of 2677 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Reliable Data Services has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Reliable Data Services' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reliable Data Services ranks #620 out of 2677 companies for Gross Margin %. This places Reliable Data Services in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.49. Reliable Data Services' value of 8.04% is 80.1% below this benchmark. Historically, Reliable Data Services' own Gross Margin % has ranged from 13.36 to 89.51 over the past decade. While the company's 10-year median is 73.48 vs. the industry median of 40.49, Reliable Data Services 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 40.49, based on 2,677 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. Reliable Data Services's current Gross Margin % of 8.04% is 80.1% 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 Reliable Data Services and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliable Data Services's current Gross Margin % is 8.04%, which is 89% below median its own 10-year median of 73.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliable Data Services stock overvalued right now?
Based on GuruFocus' analysis, Reliable Data Services (NSE:RELIABLE) is currently considered Fairly Valued. The stock's GF Value™ is ₹148.18, compared to a current price of ₹145.08 — trading 2.1% below its estimated fair value. The current Gross Margin % is 8.04%, which is 89% below median its 10-year median of 73.48 and 80.1% below the Software industry median of 40.49. Reliable Data Services' overall GF Score™ is 90/100 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 Reliable Data Services (NSE:RELIABLE), the current Gross Margin % is 8.04% 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 Reliable Data Services (NSE:RELIABLE) Overvalued in 2026?
Based on GuruFocus' analysis, Reliable Data Services stock appears to be undervalued.
The current stock price of ₹145.08 is trading 2.1% below its estimated GF Value™ of ₹148.18.
GuruFocus considers Reliable Data Services to be Fairly Valued.
Key valuation signals for NSE:RELIABLE:
Gross Margin %: 8.04% (89% below median its 10-year median of 73.48)
GF Value™: ₹148.18 vs. price of ₹145.08 (2.1% below fair value)
Industry Position: 80.1% below the Software median (#620 of 2677)
No single metric tells the full story. See the NSE:RELIABLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliable Data Services Ltd is an India-based company that provides IT and IT-enabled services to various banking, financial services, and other manufacturing industries in the field of back-office processing, front office follow-ups, and management services. The business segments comprises of which are Banking, Financial Services and Insurance and Non-Banking, Financial Services and Insurance. The Banking, Financial Services and Insurance segment derives majority of its revenue for the company. The company provides transaction processing services and payroll services as well.
90GF Score
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