Rama TelecomNSE:RTL -1.77%18 Gross Margin % is 31.66% as of Mar. 2025. GuruFocus rates NSE:RTL with a GF Score™ of 18/100. Among 342 Telecommunication Services companies, Rama Telecom ranks worse than 75.73% on this metric.
The historical rank and industry rank for Rama Telecom's Gross Margin % or its related term are showing as below:
NSE:RTL's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 51.415 * Ranked among companies with meaningful Gross Margin % only.
Rama Telecom had a gross margin of 31.66% for the quarter that ended in Mar. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Rama Telecom was 0.00% per year.
Rama Telecom (NSE:RTL) 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
Rama Telecom had a gross margin of 31.66% for the quarter that ended in Mar. 2025 => 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.
Rama Telecom Gross Margin % Related Terms
Rama Telecom Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rama Telecom'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.
Rama Telecom Gross Margin % Chart
Rama Telecom Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Gross Margin %
13.18
14.88
21.18
28.35
Rama Telecom Semi-Annual Data
Mar22
Mar23
Mar24
Sep24
Mar25
Gross Margin %
0.00
0.00
0.00
24.15
31.66
NSE:RTL vs TMUS, VZ, T: Gross Margin % Comparison
For the Telecom Services subindustry, Rama Telecom'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.
Rama Telecom Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Rama Telecom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rama Telecom'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.
Rama Telecom (NSE:RTL) has a Gross Margin % of 31.66% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Rama Telecom and its competitors. According to the industry distribution chart, Rama Telecom ranks #259 out of 342 companies in the Telecommunication Services industry, placing it in the top 75.7%.
Is Rama Telecom's Gross Margin % too high?
Rama Telecom's current Gross Margin % is 31.66%. The Telecommunication Services industry median Gross Margin % is 51.42. Rama Telecom's value of 31.66% is 38.4% below this industry median. Based on the distribution chart, Rama Telecom ranks #259 out of 342 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's Gross Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Rama Telecom ranks #259 out of 342 companies for Gross Margin %. This places Rama Telecom in the lower half of its industry. The industry median Gross Margin % is 51.42. Rama Telecom's value of 31.66% is 38.4% below this benchmark. 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 Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 342 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. Rama Telecom's current Gross Margin % of 31.66% is 38.4% 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 Rama Telecom and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Telecom's current Gross Margin % is 31.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current Gross Margin % of 31.66%. The current Gross Margin % is 31.66% and 38.4% below the Telecommunication Services industry median of 51.42. Rama Telecom's overall GF Score™ is 18/100. 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 Rama Telecom (NSE:RTL), the current Gross Margin % is 31.66% as of Mar. 2025. 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.
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
18GF Score
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