NHPCNSE:NHPC +0.11%79 Gross Margin % is 96.34% as of Mar. 2026, which is 11% above its 10-year median of 87.11. GuruFocus rates NSE:NHPC with a GF Score™ of 79/100 and a GF Value™ of ₹104.33 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, NHPC ranks better than 94.79% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. NHPC's Gross Profit for the
three
months ended in Mar. 2026 was ₹27,126 Mil. NHPC's Revenue for the
three
months ended in Mar. 2026 was ₹28,155 Mil. Therefore, NHPC's Gross Margin % for the quarter that ended in Mar. 2026 was 96.34%.
The historical rank and industry rank for NHPC's Gross Margin % or its related term are showing as below:
NSE:NHPC'
s Gross Margin % Range Over the Past 10 Years
Min: 85.12 Med: 87.11 Max: 92.93
Current: 92.93
During the past 13 years, the highestGross Margin % of NHPC was 92.93%. The lowest was 85.12%. And the median was 87.11%.
NSE:NHPC's Gross Margin % is ranked better than 94.79% of 403
companies
in the Utilities - Independent Power Producers industry
Industry Median: 31.35
vs NSE:NHPC: 92.93
NHPC had a gross margin of 96.34% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NHPC was 1.70% per year.
NHPC (NSE:NHPC) 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
NHPC had a gross margin of 96.34% 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.
NHPC Gross Margin % Related Terms
NHPC Gross Margin % Historical Data
* Premium members only.
The historical data trend for NHPC'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 Utilities - Renewable subindustry, NHPC'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.
NHPC Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, NHPC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NHPC'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.
NHPC (NSE:NHPC) has a Gross Margin % of 96.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NHPC and its competitors. This is 11% above median its historical median of 87.11. Over the past decade, NHPC's Gross Margin % has ranged from 85.12 to 92.93. According to the industry distribution chart, NHPC ranks #21 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 5.2%.
Is NHPC's Gross Margin % too high?
NHPC's current Gross Margin % of 96.34% is 11% above median its 10-year median of 87.11. Over the past 10 years, this metric has ranged from a low of 85.12 to a high of 92.93. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. NHPC's value of 96.34% is 207.3% above this industry median. Based on the distribution chart, NHPC ranks #21 out of 403 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, NHPC has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NHPC's Gross Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, NHPC ranks #21 out of 403 companies for Gross Margin %. This places NHPC in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 31.35. NHPC's value of 96.34% is 207.3% above this benchmark. Historically, NHPC's own Gross Margin % has ranged from 85.12 to 92.93 over the past decade. While the company's 10-year median is 87.11 vs. the industry median of 31.35, NHPC 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 Utilities - Independent Power Producers company?
The median Gross Margin % among Utilities - Independent Power Producers companies is 31.35, based on 403 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. NHPC's current Gross Margin % of 96.34% is 207.3% 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 NHPC and its competitors. For the Utilities - Independent Power Producers industry, the median Gross Margin % is 31.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NHPC's current Gross Margin % is 96.34%, which is 11% above median its own 10-year median of 87.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NHPC stock overvalued right now?
Based on GuruFocus' analysis, NHPC (NSE:NHPC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹104.33, compared to a current price of ₹79.40 — trading 23.9% below its estimated fair value. The current Gross Margin % is 96.34%, which is 11% above median its 10-year median of 87.11 and 207.3% above the Utilities - Independent Power Producers industry median of 31.35. NHPC's overall GF Score™ is 79/100 with 7 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 NHPC (NSE:NHPC), the current Gross Margin % is 96.34% 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 NHPC (NSE:NHPC) Overvalued in 2026?
Based on GuruFocus' analysis, NHPC stock appears to be undervalued.
The current stock price of ₹79.40 is trading 23.9% below its estimated GF Value™ of ₹104.33.
GuruFocus considers NHPC to be Modestly Undervalued.
Key valuation signals for NSE:NHPC:
Gross Margin %: 96.34% (11% above median its 10-year median of 87.11)
GF Value™: ₹104.33 vs. price of ₹79.40 (23.9% below fair value)
Industry Position: 207.3% above the Utilities - Independent Power Producers median (#21 of 403)
No single metric tells the full story. See the NSE:NHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NHPC Ltd is an electric utility company, of which the Indian government owns the vast majority of shares. The company produces electricity through the operation of its portfolio of hydroelectric power plants located across India. Electricity generation (including income from embedded Finance/ Operating leases) is the principal business activity of the Company. NHPC generates a majority of its revenue from the sale of energy to state electricity boards, state energy departments, and their successor companies via long-term agreements. The company has made efforts to expand its electric production capacity with thermal, wind, and solar power generating facilities. NHPC operates its power development and secondary consulting businesses exclusively in India.
79GF Score
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