Zim LaboratoriesNSE:ZIMLAB -2.32%76 Gross Margin % is 55.24% as of Mar. 2026, which is 11% above its 10-year median of 49.73. GuruFocus rates NSE:ZIMLAB with a GF Score™ of 76/100 and a GF Value™ of ₹102.88 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 938 Drug Manufacturers companies, Zim Laboratories ranks better than 62.58% on this metric.
The historical rank and industry rank for Zim Laboratories's Gross Margin % or its related term are showing as below:
NSE:ZIMLAB'
s Gross Margin % Range Over the Past 10 Years
Min: 44.6 Med: 49.73 Max: 55.83
Current: 55.83
During the past 12 years, the highestGross Margin % of Zim Laboratories was 55.83%. The lowest was 44.60%. And the median was 49.73%.
NSE:ZIMLAB's Gross Margin % is ranked better than 62.58% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs NSE:ZIMLAB: 55.83
Zim Laboratories had a gross margin of 55.24% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zim Laboratories was 3.10% per year.
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
Zim Laboratories had a gross margin of 55.24% 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.
Zim Laboratories Gross Margin % Related Terms
Zim Laboratories Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zim Laboratories'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Zim Laboratories'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.
Zim Laboratories Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zim Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zim Laboratories'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.
Zim Laboratories (NSE:ZIMLAB) has a Gross Margin % of 55.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zim Laboratories and its competitors. This is 11% above median its historical median of 49.73. Over the past decade, Zim Laboratories' Gross Margin % has ranged from 44.60 to 55.83. According to the industry distribution chart, Zim Laboratories ranks #351 out of 938 companies in the Drug Manufacturers industry, placing it in the top 37.4%.
Is Zim Laboratories' Gross Margin % too high?
Zim Laboratories' current Gross Margin % of 55.24% is 11% above median its 10-year median of 49.73. Over the past 10 years, this metric has ranged from a low of 44.60 to a high of 55.83. The Drug Manufacturers industry median Gross Margin % is 48.44. Zim Laboratories' value of 55.24% is 14% above this industry median. Based on the distribution chart, Zim Laboratories ranks #351 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Zim Laboratories has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zim Laboratories' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zim Laboratories ranks #351 out of 938 companies for Gross Margin %. This puts Zim Laboratories in the upper half of its industry. The industry median Gross Margin % is 48.44. Zim Laboratories' value of 55.24% is 14% above this benchmark. Historically, Zim Laboratories' own Gross Margin % has ranged from 44.60 to 55.83 over the past decade. While the company's 10-year median is 49.73 vs. the industry median of 48.44, Zim Laboratories 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 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. Zim Laboratories's current Gross Margin % of 55.24% is 14% 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 Zim Laboratories and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zim Laboratories's current Gross Margin % is 55.24%, which is 11% above median its own 10-year median of 49.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zim Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Zim Laboratories (NSE:ZIMLAB) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹102.88, compared to a current price of ₹124.90 — trading 21.4% above its estimated fair value. The current Gross Margin % is 55.24%, which is 11% above median its 10-year median of 49.73 and 14% above the Drug Manufacturers industry median of 48.44. Zim Laboratories' overall GF Score™ is 76/100 with 8 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 Zim Laboratories (NSE:ZIMLAB), the current Gross Margin % is 55.24% 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 Zim Laboratories (NSE:ZIMLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zim Laboratories stock appears to be overvalued.
The current stock price of ₹124.90 is trading 21.4% above its estimated GF Value™ of ₹102.88.
GuruFocus considers Zim Laboratories to be Modestly Overvalued.
Key valuation signals for NSE:ZIMLAB:
Gross Margin %: 55.24% (11% above median its 10-year median of 49.73)
GF Value™: ₹102.88 vs. price of ₹124.90 (21.4% above fair value)
Industry Position: 14% above the Drug Manufacturers median (#351 of 938)
No single metric tells the full story. See the NSE:ZIMLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zim Laboratories Ltd is engaged in the manufacturing of formulation drugs and pre formulation ingredients in India and marketing and selling these within and outside India. It is engaged in manufacturing &wholesale of pharmaceutical products, market research and research & development activities. The Group is mainly engaged in the business of pharmaceuticals. It has presence in India and Outside India. The company generates majority of revenue from India. Its products are Oral Thin Films, Pre-formulations Intermediates, Finished Formulations.
76GF Score
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