Zensar TechnologiesNSE:ZENSARTECH +10.43%88 Gross Margin % is 22.17% as of Mar. 2026, which is 14% below its 10-year median of 25.88. GuruFocus rates NSE:ZENSARTECH with a GF Score™ of 88/100 and a GF Value™ of ₹750.05 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,681 Software companies, Zensar Technologies ranks worse than 75.57% 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
Zensar Technologies had a gross margin of 22.17% 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.
Zensar Technologies Gross Margin % Related Terms
Zensar Technologies Gross Margin % Historical Data
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The historical data trend for Zensar Technologies'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:ZENSARTECH vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Zensar Technologies'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.
Zensar Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Zensar Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zensar Technologies'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.
Zensar Technologies (NSE:ZENSARTECH) has a Gross Margin % of 22.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zensar Technologies and its competitors. This is 14% below median its historical median of 25.88. Over the past decade, Zensar Technologies' Gross Margin % has ranged from 22.44 to 28.71. According to the industry distribution chart, Zensar Technologies ranks #2026 out of 2681 companies in the Software industry, placing it in the top 75.6%.
Is Zensar Technologies' Gross Margin % too high?
Zensar Technologies' current Gross Margin % of 22.17% is 14% below median its 10-year median of 25.88. Over the past 10 years, this metric has ranged from a low of 22.44 to a high of 28.71. The Software industry median Gross Margin % is 40.41. Zensar Technologies' value of 22.17% is 45.1% below this industry median. Based on the distribution chart, Zensar Technologies ranks #2026 out of 2681 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Zensar Technologies has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zensar Technologies' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Zensar Technologies ranks #2026 out of 2681 companies for Gross Margin %. This places Zensar Technologies in the lower half of its industry. The industry median Gross Margin % is 40.41. Zensar Technologies' value of 22.17% is 45.1% below this benchmark. Historically, Zensar Technologies' own Gross Margin % has ranged from 22.44 to 28.71 over the past decade. While the company's 10-year median is 25.88 vs. the industry median of 40.41, Zensar Technologies 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. Zensar Technologies's current Gross Margin % of 22.17% is 45.1% 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 Zensar Technologies 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. Zensar Technologies's current Gross Margin % is 22.17%, which is 14% below median its own 10-year median of 25.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zensar Technologies stock overvalued right now?
Based on GuruFocus' analysis, Zensar Technologies (NSE:ZENSARTECH) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹750.05, compared to a current price of ₹516.10 — trading 31.2% below its estimated fair value. The current Gross Margin % is 22.17%, which is 14% below median its 10-year median of 25.88 and 45.1% below the Software industry median of 40.41. Zensar Technologies' overall GF Score™ is 88/100 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 Zensar Technologies (NSE:ZENSARTECH), the current Gross Margin % is 22.17% 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 Zensar Technologies (NSE:ZENSARTECH) Overvalued in 2026?
Based on GuruFocus' analysis, Zensar Technologies stock appears to be undervalued.
The current stock price of ₹516.10 is trading 31.2% below its estimated GF Value™ of ₹750.05.
GuruFocus considers Zensar Technologies to be Significantly Undervalued.
Key valuation signals for NSE:ZENSARTECH:
Gross Margin %: 22.17% (14% below median its 10-year median of 25.88)
GF Value™: ₹750.05 vs. price of ₹516.10 (31.2% below fair value)
Industry Position: 45.1% below the Software median (#2026 of 2681)
No single metric tells the full story. See the NSE:ZENSARTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zensar Technologies Ltd provides a range of information technology services and sells IT-related products. The company segments include Digital and Application Services (DAS) and Digital Foundation Services (DFS). It generates maximum revenue from the DAS segment. The Digital and Application Services (DAS) segment is engaged in Custom Applications Management Services that include Application Development, Maintenance, Support, Modernization, and Testing Services across a wide technology spectrum and Industry verticals. Geographically, the majority of its revenue comes from the Americas and the rest from Europe, and the rest of the world.
88GF Score
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