Bharat Heavy ElectricalsNSE:BHEL +3.58%83 Gross Margin % is 34.85% as of Mar. 2026, which is 19% above its 10-year median of 29.26. GuruFocus rates NSE:BHEL with a GF Score™ of 83/100 and a GF Value™ of ₹322.26 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,999 Industrial Products companies, Bharat Heavy Electricals ranks better than 62.92% on this metric.
Bharat Heavy Electricals (NSE:BHEL) Gross Margin % Explanation
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 Heavy Electricals had a gross margin of 34.85% for the quarter that ended in Mar. 2026 => Competition eroding margins
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 Heavy Electricals Gross Margin % Related Terms
Bharat Heavy Electricals Gross Margin % Historical Data
* 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:BHEL vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Bharat Heavy Electricals'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 Heavy Electricals Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Bharat Heavy Electricals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bharat Heavy Electricals'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 Heavy Electricals (NSE:BHEL) has a Gross Margin % of 34.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bharat Heavy Electricals and its competitors. This is 19% above median its historical median of 29.26. Over the past decade, Bharat Heavy Electricals' Gross Margin % has ranged from 26.36 to 33.50. According to the industry distribution chart, Bharat Heavy Electricals ranks #1112 out of 2999 companies in the Industrial Products industry, placing it in the top 37.1%.
Is Bharat Heavy Electricals' Gross Margin % too high?
Bharat Heavy Electricals' current Gross Margin % of 34.85% is 19% above median its 10-year median of 29.26. Over the past 10 years, this metric has ranged from a low of 26.36 to a high of 33.50. The Industrial Products industry median Gross Margin % is 26.85. Bharat Heavy Electricals' value of 34.85% is 29.8% above this industry median. Based on the distribution chart, Bharat Heavy Electricals ranks #1112 out of 2999 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Bharat Heavy Electricals has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bharat Heavy Electricals' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Bharat Heavy Electricals ranks #1112 out of 2999 companies for Gross Margin %. This puts Bharat Heavy Electricals in the upper half of its industry. The industry median Gross Margin % is 26.85. Bharat Heavy Electricals' value of 34.85% is 29.8% above this benchmark. Historically, Bharat Heavy Electricals' own Gross Margin % has ranged from 26.36 to 33.50 over the past decade. While the company's 10-year median is 29.26 vs. the industry median of 26.85, Bharat Heavy Electricals 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 Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.85, based on 2,999 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 Heavy Electricals's current Gross Margin % of 34.85% is 29.8% 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 Heavy Electricals and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharat Heavy Electricals's current Gross Margin % is 34.85%, which is 19% above median its own 10-year median of 29.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Heavy Electricals stock overvalued right now?
Based on GuruFocus' analysis, Bharat Heavy Electricals (NSE:BHEL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹322.26, compared to a current price of ₹395.25 — trading 22.6% above its estimated fair value. The current Gross Margin % is 34.85%, which is 19% above median its 10-year median of 29.26 and 29.8% above the Industrial Products industry median of 26.85. Bharat Heavy Electricals' overall GF Score™ is 83/100 with 5 warning signs 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 Bharat Heavy Electricals (NSE:BHEL), the current Gross Margin % is 34.85% 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 Heavy Electricals (NSE:BHEL) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Heavy Electricals stock appears to be overvalued.
The current stock price of ₹395.25 is trading 22.6% above its estimated GF Value™ of ₹322.26.
GuruFocus considers Bharat Heavy Electricals to be Modestly Overvalued.
Key valuation signals for NSE:BHEL:
Gross Margin %: 34.85% (19% above median its 10-year median of 29.26)
GF Value™: ₹322.26 vs. price of ₹395.25 (22.6% above fair value)
Industry Position: 29.8% above the Industrial Products median (#1112 of 2999)
No single metric tells the full story. See the NSE:BHEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Heavy Electricals Ltd is an integrated power plant equipment manufacturer and engineering company in India. Its products and services serve power, transportation, energy, oil and gas, defense, and other industrial markets. The company has three business segments: Power (which contributes the majority of total revenue), Industry sector and International Operations. Bharat's product portfolio consists of heavy industrial equipment and components, including turbines, valves, pumps, boilers, and insulators. In addition, the company offers aftersales service to customers for maintenance and repairs and can help synchronize power plants. The majority of total revenue is derived from India, but the company has a footprint in many different regions.
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