SoftTech EngineersNSE:SOFTTECH -1.78%84 Gross Margin % is 75.55% as of Mar. 2026, which is 17% above its 10-year median of 64.81. GuruFocus rates NSE:SOFTTECH with a GF Score™ of 84/100 and a GF Value™ of ₹466.88 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,681 Software companies, SoftTech Engineers ranks better than 72.47% 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
SoftTech Engineers had a gross margin of 75.55% 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.
SoftTech Engineers Gross Margin % Related Terms
SoftTech Engineers Gross Margin % Historical Data
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The historical data trend for SoftTech Engineers'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:SOFTTECH vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, SoftTech Engineers'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.
SoftTech Engineers Gross Margin % vs Software Industry
For the Software industry and Technology sector, SoftTech Engineers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SoftTech Engineers'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.
SoftTech Engineers (NSE:SOFTTECH) has a Gross Margin % of 75.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SoftTech Engineers and its competitors. This is 17% above median its historical median of 64.81. Over the past decade, SoftTech Engineers' Gross Margin % has ranged from 53.49 to 76.22. According to the industry distribution chart, SoftTech Engineers ranks #738 out of 2681 companies in the Software industry, placing it in the top 27.5%.
Is SoftTech Engineers' Gross Margin % too high?
SoftTech Engineers' current Gross Margin % of 75.55% is 17% above median its 10-year median of 64.81. Over the past 10 years, this metric has ranged from a low of 53.49 to a high of 76.22. The Software industry median Gross Margin % is 40.41. SoftTech Engineers' value of 75.55% is 87% above this industry median. Based on the distribution chart, SoftTech Engineers ranks #738 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, SoftTech Engineers has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SoftTech Engineers' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, SoftTech Engineers ranks #738 out of 2681 companies for Gross Margin %. This puts SoftTech Engineers in the upper half of its industry. The industry median Gross Margin % is 40.41. SoftTech Engineers' value of 75.55% is 87% above this benchmark. Historically, SoftTech Engineers' own Gross Margin % has ranged from 53.49 to 76.22 over the past decade. While the company's 10-year median is 64.81 vs. the industry median of 40.41, SoftTech Engineers 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 40.41, 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. SoftTech Engineers's current Gross Margin % of 75.55% is 87% 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 SoftTech Engineers 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. SoftTech Engineers's current Gross Margin % is 75.55%, which is 17% above median its own 10-year median of 64.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoftTech Engineers stock overvalued right now?
Based on GuruFocus' analysis, SoftTech Engineers (NSE:SOFTTECH) is currently considered Fairly Valued. The stock's GF Value™ is ₹466.88, compared to a current price of ₹435.00 — trading 6.8% below its estimated fair value. The current Gross Margin % is 75.55%, which is 17% above median its 10-year median of 64.81 and 87% above the Software industry median of 40.41. SoftTech Engineers' overall GF Score™ is 84/100 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 SoftTech Engineers (NSE:SOFTTECH), the current Gross Margin % is 75.55% 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 SoftTech Engineers (NSE:SOFTTECH) Overvalued in 2026?
Based on GuruFocus' analysis, SoftTech Engineers stock appears to be undervalued.
The current stock price of ₹435.00 is trading 6.8% below its estimated GF Value™ of ₹466.88.
GuruFocus considers SoftTech Engineers to be Fairly Valued.
Key valuation signals for NSE:SOFTTECH:
Gross Margin %: 75.55% (17% above median its 10-year median of 64.81)
GF Value™: ₹466.88 vs. price of ₹435.00 (6.8% below fair value)
Industry Position: 87% above the Software median (#738 of 2681)
No single metric tells the full story. See the NSE:SOFTTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoftTech Engineers Ltd is an information technology and software development services organisation, delivering end-to-end solutions in the Architectural-Engineering-Construction (AEC) space, catering to government bodies, municipalities, property developers, municipal corporations, investors, real estate companies, contractors, architects, and consultants. The company offers Building Information Modeling (BIM) services, Geographic Information Systems, and AI services engineered specifically for the construction and infrastructure industry. In addition, it offers a suite of software products, including CivitPLAN, CivitSustain, CivitBuild, CivitInfra, and CivitPermit to its clients. Geographically, the company derives a majority of its revenue from its business in India.
84GF Score
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