Bharat ElectronicsNSE:BEL +0.72%97 Gross Margin % is 48.22% as of Mar. 2026, which is 5% above its 10-year median of 45.97. GuruFocus rates NSE:BEL with a GF Score™ of 97/100 and a GF Value™ of ₹395.86 (Fairly Valued). Among 343 Aerospace & Defense companies, Bharat Electronics ranks better than 80.47% on this metric.
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
Bharat Electronics had a gross margin of 48.22% 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.
Bharat Electronics Gross Margin % Related Terms
Bharat Electronics Gross Margin % Historical Data
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The historical data trend for Bharat Electronics'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.
NSE:BEL vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Bharat Electronics'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.
Bharat Electronics Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Bharat Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bharat Electronics'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.
Bharat Electronics (NSE:BEL) has a Gross Margin % of 48.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bharat Electronics and its competitors. This is near median its historical median of 45.97. Over the past decade, Bharat Electronics' Gross Margin % has ranged from 40.93 to 49.76. According to the industry distribution chart, Bharat Electronics ranks #67 out of 343 companies in the Aerospace & Defense industry, placing it in the top 19.5%.
Is Bharat Electronics' Gross Margin % too high?
Bharat Electronics' current Gross Margin % of 48.22% is near median its 10-year median of 45.97. Over the past 10 years, this metric has ranged from a low of 40.93 to a high of 49.76. The Aerospace & Defense industry median Gross Margin % is 26.61. Bharat Electronics' value of 48.22% is 81.2% above this industry median. Based on the distribution chart, Bharat Electronics ranks #67 out of 343 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Bharat Electronics has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bharat Electronics' Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Bharat Electronics ranks #67 out of 343 companies for Gross Margin %. This places Bharat Electronics in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.61. Bharat Electronics' value of 48.22% is 81.2% above this benchmark. Historically, Bharat Electronics' own Gross Margin % has ranged from 40.93 to 49.76 over the past decade. While the company's 10-year median is 45.97 vs. the industry median of 26.61, Bharat Electronics 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 Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.61, based on 343 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. Bharat Electronics's current Gross Margin % of 48.22% is 81.2% 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 Bharat Electronics and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharat Electronics's current Gross Margin % is 48.22%, which is near median its own 10-year median of 45.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Electronics stock overvalued right now?
Based on GuruFocus' analysis, Bharat Electronics (NSE:BEL) is currently considered Fairly Valued. The stock's GF Value™ is ₹395.86, compared to a current price of ₹418.05 — trading 5.6% above its estimated fair value. The current Gross Margin % is 48.22%, which is near median its 10-year median of 45.97 and 81.2% above the Aerospace & Defense industry median of 26.61. Bharat Electronics' overall GF Score™ is 97/100. 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 Bharat Electronics (NSE:BEL), the current Gross Margin % is 48.22% 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 Bharat Electronics (NSE:BEL) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Electronics stock appears to be overvalued.
The current stock price of ₹418.05 is trading 5.6% above its estimated GF Value™ of ₹395.86.
GuruFocus considers Bharat Electronics to be Fairly Valued.
Key valuation signals for NSE:BEL:
Gross Margin %: 48.22% (near median its 10-year median of 45.97)
GF Value™: ₹395.86 vs. price of ₹418.05 (5.6% above fair value)
Industry Position: 81.2% above the Aerospace & Defense median (#67 of 343)
No single metric tells the full story. See the NSE:BEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Electronics Ltd is an aerospace and defense company predominantly owned by the Indian government. It manufactures a wide range of specialized electronics and equipment for defense and civilian use. Its investments are made in research and development to meet the ever-changing needs of customers and to test products in its pipeline. Its product portfolio includes unmanned systems, land-based radars, batteries, weapon systems, fuzes, simulators, and jammers, among others. It also provides cybersecurity and software products. A majority of the company's revenue is derived from the defense sector. Geographically, the company's key revenue is derived from India, and it also has international customers from countries like the United Kingdom, Israel, and others.
97GF Score
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