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BITSBOM:526709 -0.40%71 Gross Margin % is 82.77% as of Jun. 2026, which is 8% above its 10-year median of 76.48. GuruFocus rates BOM:526709 with a GF Score™ of 71/100 and a GF Value™ of ₹11.82 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 244 Education companies, BITS ranks better than 92.21% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. BITS's Gross Profit for the
three
months ended in Jun. 2026 was ₹3.60 Mil. BITS's Revenue for the
three
months ended in Jun. 2026 was ₹4.35 Mil. Therefore, BITS's Gross Margin % for the quarter that ended in Jun. 2026 was 82.77%.
The historical rank and industry rank for BITS's Gross Margin % or its related term are showing as below:
BOM:526709'
s Gross Margin % Range Over the Past 10 Years
Min: -0.17 Med: 76.48 Max: 81.84
Current: 80.44
During the past 13 years, the highestGross Margin % of BITS was 81.84%. The lowest was -0.17%. And the median was 76.48%.
BOM:526709's Gross Margin % is ranked better than 92.21% of 244
companies
in the Education industry
Industry Median: 48.105
vs BOM:526709: 80.44
BITS had a gross margin of 82.77% for the quarter that ended in Jun. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BITS was 0.60% 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
BITS had a gross margin of 82.77% for the quarter that ended in Jun. 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.
BITS Gross Margin % Related Terms
BITS Gross Margin % Historical Data
* Premium members only.
The historical data trend for BITS'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.
BOM:526709 vs EDU, TAL, LAUR: Gross Margin % Comparison
For the Education & Training Services subindustry, BITS'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.
BITS Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, BITS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BITS'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.
BITS (BOM:526709) has a Gross Margin % of 82.77% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BITS and its competitors. This is near median its historical median of 76.48. According to the industry distribution chart, BITS ranks #19 out of 244 companies in the Education industry, placing it in the top 7.8%.
Is BITS's Gross Margin % too high?
BITS's current Gross Margin % of 82.77% is near median its 10-year median of 76.48. The Education industry median Gross Margin % is 48.11. BITS's value of 82.77% is 72.1% above this industry median. Based on the distribution chart, BITS ranks #19 out of 244 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, BITS has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does BITS's Gross Margin % compare to EDU and TAL?
According to the Education industry distribution chart, BITS ranks #19 out of 244 companies for Gross Margin %. This places BITS in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.11. BITS's value of 82.77% is 72.1% above this benchmark. While the company's 10-year median is 76.48 vs. the industry median of 48.11, BITS 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 an Education company?
The median Gross Margin % among Education companies is 48.11, based on 244 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. BITS's current Gross Margin % of 82.77% is 72.1% 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 BITS and its competitors. For the Education industry, the median Gross Margin % is 48.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BITS's current Gross Margin % is 82.77%, which is near median its own 10-year median of 76.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BITS stock overvalued right now?
Based on GuruFocus' analysis, BITS (BOM:526709) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹11.82, compared to a current price of ₹7.45 — trading 37% below its estimated fair value. The current Gross Margin % is 82.77%, which is near median its 10-year median of 76.48 and 72.1% above the Education industry median of 48.11. BITS's overall GF Score™ is 71/100 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 BITS (BOM:526709), the current Gross Margin % is 82.77% as of Jun. 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 BITS (BOM:526709) Overvalued in 2026?
Based on GuruFocus' analysis, BITS stock appears to be undervalued.
The current stock price of ₹7.45 is trading 37% below its estimated GF Value™ of ₹11.82.
GuruFocus considers BITS to be Significantly Undervalued.
Key valuation signals for BOM:526709:
Gross Margin %: 82.77% (near median its 10-year median of 76.48)
GF Value™: ₹11.82 vs. price of ₹7.45 (37% below fair value)
Industry Position: 72.1% above the Education median (#19 of 244)
No single metric tells the full story. See the BOM:526709 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BITS Ltd is engaged in the business of imparting education in the fields of Art, Commerce, Science, Computer Software, Computer Hardware, Business Management, Hotel Management, Engineering & Technical Education, and in all other fields by setting up centers, institutes, colleges, universities including distance learning programs in India and Abroad.
71GF Score
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