What is Gross Profit Margin?
Gross margin shows the percentage of revenue remaining after deducting the direct cost of producing goods or services — the first measure of pricing power.
Formula
Gross Margin = (Revenue - COGS) ÷ Revenue × 100
How to Interpret
Higher gross margins indicate stronger pricing power and competitive position. Expanding margins over time are a positive signal.
Typical Ranges
IT/Software: 60-80%, FMCG: 40-60%, Manufacturing: 20-40%
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by Gross Profit Margin.
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