HEGNSE:HEG -0.88%87 Gross Margin % is 42.15% as of Mar. 2026, which is 19% above its 10-year median of 35.36. GuruFocus rates NSE:HEG with a GF Score™ of 87/100 and a GF Value™ of ₹530.34 (Fairly Valued). Among 2,993 Industrial Products companies, HEG ranks better than 83.83% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. HEG's Gross Profit for the
three
months ended in Mar. 2026 was ₹2,543 Mil. HEG's Revenue for the
three
months ended in Mar. 2026 was ₹6,032 Mil. Therefore, HEG's Gross Margin % for the quarter that ended in Mar. 2026 was 42.15%.
The historical rank and industry rank for HEG's Gross Margin % or its related term are showing as below:
NSE:HEG'
s Gross Margin % Range Over the Past 10 Years
Min: 10.79 Med: 35.36 Max: 77.94
Current: 44.37
During the past 13 years, the highestGross Margin % of HEG was 77.94%. The lowest was 10.79%. And the median was 35.36%.
NSE:HEG's Gross Margin % is ranked better than 83.83% of 2993
companies
in the Industrial Products industry
Industry Median: 26.83
vs NSE:HEG: 44.37
HEG had a gross margin of 42.15% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for HEG was 10.20% per year.
HEG (NSE:HEG) 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
HEG had a gross margin of 42.15% 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.
HEG Gross Margin % Related Terms
HEG Gross Margin % Historical Data
* Premium members only.
The historical data trend for HEG'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.
For the Electrical Equipment & Parts subindustry, HEG'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.
HEG Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, HEG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HEG'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.
HEG (NSE:HEG) has a Gross Margin % of 42.15% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HEG and its competitors. This is 19% above median its historical median of 35.36. Over the past decade, HEG's Gross Margin % has ranged from 10.79 to 77.94. According to the industry distribution chart, HEG ranks #484 out of 2993 companies in the Industrial Products industry, placing it in the top 16.2%.
Is HEG's Gross Margin % too high?
HEG's current Gross Margin % of 42.15% is 19% above median its 10-year median of 35.36. Over the past 10 years, this metric has ranged from a low of 10.79 to a high of 77.94. The Industrial Products industry median Gross Margin % is 26.83. HEG's value of 42.15% is 57.1% above this industry median. Based on the distribution chart, HEG ranks #484 out of 2993 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, HEG has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HEG's Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, HEG ranks #484 out of 2993 companies for Gross Margin %. This places HEG in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.83. HEG's value of 42.15% is 57.1% above this benchmark. Historically, HEG's own Gross Margin % has ranged from 10.79 to 77.94 over the past decade. While the company's 10-year median is 35.36 vs. the industry median of 26.83, HEG 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 26.83, based on 2,993 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. HEG's current Gross Margin % of 42.15% is 57.1% 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 HEG and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HEG's current Gross Margin % is 42.15%, which is 19% above median its own 10-year median of 35.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HEG stock overvalued right now?
Based on GuruFocus' analysis, HEG (NSE:HEG) is currently considered Fairly Valued. The stock's GF Value™ is ₹530.34, compared to a current price of ₹526.65 — trading 0.7% below its estimated fair value. The current Gross Margin % is 42.15%, which is 19% above median its 10-year median of 35.36 and 57.1% above the Industrial Products industry median of 26.83. HEG's overall GF Score™ is 87/100. 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 HEG (NSE:HEG), the current Gross Margin % is 42.15% 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 HEG (NSE:HEG) Overvalued in 2026?
Based on GuruFocus' analysis, HEG stock appears to be undervalued.
The current stock price of ₹526.65 is trading 0.7% below its estimated GF Value™ of ₹530.34.
GuruFocus considers HEG to be Fairly Valued.
Key valuation signals for NSE:HEG:
Gross Margin %: 42.15% (19% above median its 10-year median of 35.36)
GF Value™: ₹530.34 vs. price of ₹526.65 (0.7% below fair value)
Industry Position: 57.1% above the Industrial Products median (#484 of 2993)
No single metric tells the full story. See the NSE:HEG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HEG Ltd is a graphite electrode manufacturer. The company operates in business segments that include Graphite Electrodes, which manufactures graphite electrodes; and Power Generation, which comprises of generation of power for captive consumption and sale. The company generates the majority of its revenue from the Graphite Electrodes segment. It also focuses on carbon specialties. The export sales generate maximum revenue for the company.
87GF Score
Get the complete analysis for NSE:HEG
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:HEG has been successfully added to your 
