Tera SoftwareNSE:TERASOFT 74 Net Margin % is 9.66% as of Mar. 2026, which is 255% above its 10-year median of 2.72. GuruFocus rates NSE:TERASOFT with a GF Score™ of 74/100 and a GF Value™ of ₹325.89 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,824 Software companies, Tera Software ranks better than 76.63% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Tera Software's Net Income for the
three
months ended in Mar. 2026 was ₹72 Mil. Tera Software's Revenue for the
three
months ended in Mar. 2026 was ₹747 Mil. Therefore, Tera Software's net margin for the quarter that ended in Mar. 2026 was 9.66%.
The historical rank and industry rank for Tera Software's Net Margin % or its related term are showing as below:
NSE:TERASOFT'
s Net Margin % Range Over the Past 10 Years
Min: -1.03 Med: 2.72 Max: 10.42
Current: 10.42
NSE:TERASOFT's Net Margin % is ranked better than 76.63% of 2824
companies
in the Software industry
Industry Median: 2.525
vs NSE:TERASOFT: 10.42
Tera Software (NSE:TERASOFT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Tera Software Net Margin % Related Terms
Tera Software Net Margin % Historical Data
* Premium members only.
The historical data trend for Tera Software's Net 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:TERASOFT vs IBM, ACN, FISV: Net Margin % Comparison
For the Information Technology Services subindustry, Tera Software's Net Margin %, along with its competitors' market caps and Net 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.
Tera Software Net Margin % vs Software Industry
For the Software industry and Technology sector, Tera Software's Net Margin % distribution charts can be found below:
* The bar in red indicates where Tera Software's Net 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.
Tera Software (NSE:TERASOFT) has a Net Margin % of 9.66% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tera Software and its competitors. This is 255% above median its historical median of 2.72. According to the industry distribution chart, Tera Software ranks #660 out of 2824 companies in the Software industry, placing it in the top 23.4%.
Is Tera Software's Net Margin % too high?
Tera Software's current Net Margin % of 9.66% is 255% above median its 10-year median of 2.72. The Software industry median Net Margin % is 2.53. Tera Software's value of 9.66% is 282.6% above this industry median. Based on the distribution chart, Tera Software ranks #660 out of 2824 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tera Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #660 out of 2824 companies for Net Margin %. This places Tera Software in the top 23% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.53. Tera Software's value of 9.66% is 282.6% above this benchmark. While the company's 10-year median is 2.72 vs. the industry median of 2.53, Tera Software 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.53, based on 2,824 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tera Software's current Net Margin % of 9.66% is 282.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Tera Software and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current Net Margin % is 9.66%, which is 255% above median its own 10-year median of 2.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹325.89, compared to a current price of ₹408.55 — trading 25.4% above its estimated fair value. The current Net Margin % is 9.66%, which is 255% above median its 10-year median of 2.72 and 282.6% above the Software industry median of 2.53. Tera Software's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Tera Software (NSE:TERASOFT), the current Net Margin % is 9.66% 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be overvalued.
The current stock price of ₹408.55 is trading 25.4% above its estimated GF Value™ of ₹325.89.
GuruFocus considers Tera Software to be Modestly Overvalued.
Key valuation signals for NSE:TERASOFT:
Net Margin %: 9.66% (255% above median its 10-year median of 2.72)
GF Value™: ₹325.89 vs. price of ₹408.55 (25.4% above fair value)
Industry Position: 282.6% above the Software median (#660 of 2824)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
74GF Score
Get the complete analysis for NSE:TERASOFT
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:TERASOFT has been successfully added to your 
