Ramco SystemsNSE:RAMCOSYS +20.00%63 Pretax Margin % is 11.92% as of Mar. 2026, which is 1533% above its 10-year median of 0.73. GuruFocus rates NSE:RAMCOSYS with a GF Score™ of 63/100 and a GF Value™ of ₹457.94 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,823 Software companies, Ramco Systems ranks better than 60.54% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Ramco Systems's Pre-Tax Income for the
three
months ended in Mar. 2026 was ₹221 Mil. Ramco Systems's Revenue for the
three
months ended in Mar. 2026 was ₹1,854 Mil. Therefore, Ramco Systems's pretax margin for the quarter that ended in Mar. 2026 was 11.92%.
The historical rank and industry rank for Ramco Systems's Pretax Margin % or its related term are showing as below:
NSE:RAMCOSYS'
s Pretax Margin % Range Over the Past 10 Years
Min: -46.35 Med: 0.73 Max: 17.23
Current: 6.98
NSE:RAMCOSYS's Pretax Margin % is ranked better than 60.54% of 2823
companies
in the Software industry
Industry Median: 3.53
vs NSE:RAMCOSYS: 6.98
Ramco Systems (NSE:RAMCOSYS) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Ramco Systems Pretax Margin % Related Terms
Ramco Systems Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Ramco Systems's Pretax 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:RAMCOSYS vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, Ramco Systems's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Ramco Systems Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Ramco Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Ramco Systems's Pretax 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.
Ramco Systems (NSE:RAMCOSYS) has a Pretax Margin % of 11.92% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ramco Systems and its competitors. This is 1533% above median its historical median of 0.73. According to the industry distribution chart, Ramco Systems ranks #1114 out of 2823 companies in the Software industry, placing it in the top 39.5%.
Is Ramco Systems' Pretax Margin % too high?
Ramco Systems' current Pretax Margin % of 11.92% is 1533% above median its 10-year median of 0.73. The Software industry median Pretax Margin % is 3.53. Ramco Systems' value of 11.92% is 237.7% above this industry median. Based on the distribution chart, Ramco Systems ranks #1114 out of 2823 companies in the Software industry, which is above the industry midpoint. Overall, Ramco Systems has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ramco Systems' Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Ramco Systems ranks #1114 out of 2823 companies for Pretax Margin %. This puts Ramco Systems in the upper half of its industry. The industry median Pretax Margin % is 3.53. Ramco Systems' value of 11.92% is 237.7% above this benchmark. While the company's 10-year median is 0.73 vs. the industry median of 3.53, Ramco Systems 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ramco Systems's current Pretax Margin % of 11.92% is 237.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ramco Systems and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramco Systems's current Pretax Margin % is 11.92%, which is 1533% above median its own 10-year median of 0.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramco Systems stock overvalued right now?
Based on GuruFocus' analysis, Ramco Systems (NSE:RAMCOSYS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹457.94, compared to a current price of ₹673.80 — trading 47.1% above its estimated fair value. The current Pretax Margin % is 11.92%, which is 1533% above median its 10-year median of 0.73 and 237.7% above the Software industry median of 3.53. Ramco Systems' overall GF Score™ is 63/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Ramco Systems (NSE:RAMCOSYS), the current Pretax Margin % is 11.92% 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 Ramco Systems (NSE:RAMCOSYS) Overvalued in 2026?
Based on GuruFocus' analysis, Ramco Systems stock appears to be overvalued.
The current stock price of ₹673.80 is trading 47.1% above its estimated GF Value™ of ₹457.94.
GuruFocus considers Ramco Systems to be Significantly Overvalued.
Key valuation signals for NSE:RAMCOSYS:
Pretax Margin %: 11.92% (1533% above median its 10-year median of 0.73)
GF Value™: ₹457.94 vs. price of ₹673.80 (47.1% above fair value)
Industry Position: 237.7% above the Software median (#1114 of 2823)
No single metric tells the full story. See the NSE:RAMCOSYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramco Systems Ltd develops software and software products for human capital management, payroll, enterprise resource management, monitoring and evaluation, and maintenance, repair, and overhaul providers in the Aviation industry. The company develops software through its enterprise application assembly and delivery platform Ramco VirtualWorks for transaction systems and Ramco Decision Works for analytics/reporting. The product portfolio of the company includes aviation, aerospace & defense management software, enterprise resource planning software, and payroll & logistics software on the cloud. It as only one operating segment which is Software Solutions & Services.
63GF Score
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