Reliance PowerNSE:RPOWER +9.38%64 Gross Margin % is 49.38% as of Mar. 2026, which is 1% below its 10-year median of 49.70. GuruFocus rates NSE:RPOWER with a GF Score™ of 64/100 and a GF Value™ of ₹30.00 (Fairly Valued). The stock has 7 warning signs investors should review. Among 403 Utilities - Independent Power Producers companies, Reliance Power ranks better than 71.96% on this metric.
Reliance Power Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Reliance Power's Gross Margin % or its related term are showing as below:
NSE:RPOWER'
s Gross Margin % Range Over the Past 10 Years
Min: 43.74 Med: 49.7 Max: 57.15
Current: 50.14
During the past 13 years, the highestGross Margin % of Reliance Power was 57.15%. The lowest was 43.74%. And the median was 49.70%.
NSE:RPOWER's Gross Margin % is ranked better than 71.96% of 403
companies
in the Utilities - Independent Power Producers industry
Industry Median: 31.35
vs NSE:RPOWER: 50.14
Reliance Power had a gross margin of 49.38% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Reliance Power was -1.80% per year.
Reliance Power (NSE:RPOWER) 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
Reliance Power had a gross margin of 49.38% 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.
Reliance Power Gross Margin % Related Terms
Reliance Power Gross Margin % Historical Data
* Premium members only.
The historical data trend for Reliance Power'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:RPOWER vs CEG, VST, NRG: Gross Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Reliance Power'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.
Reliance Power Gross Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Reliance Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reliance Power'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.
Reliance Power (NSE:RPOWER) has a Gross Margin % of 49.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Reliance Power and its competitors. This is near median its historical median of 49.70. Over the past decade, Reliance Power's Gross Margin % has ranged from 43.74 to 57.15. According to the industry distribution chart, Reliance Power ranks #113 out of 403 companies in the Utilities - Independent Power Producers industry, placing it in the top 28%.
Is Reliance Power's Gross Margin % too high?
Reliance Power's current Gross Margin % of 49.38% is near median its 10-year median of 49.70. Over the past 10 years, this metric has ranged from a low of 43.74 to a high of 57.15. The Utilities - Independent Power Producers industry median Gross Margin % is 31.35. Reliance Power's value of 49.38% is 57.5% above this industry median. Based on the distribution chart, Reliance Power ranks #113 out of 403 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Reliance Power has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Reliance Power's Gross Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Reliance Power ranks #113 out of 403 companies for Gross Margin %. This puts Reliance Power in the upper half of its industry. The industry median Gross Margin % is 31.35. Reliance Power's value of 49.38% is 57.5% above this benchmark. Historically, Reliance Power's own Gross Margin % has ranged from 43.74 to 57.15 over the past decade. While the company's 10-year median is 49.70 vs. the industry median of 31.35, Reliance Power 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. Reliance Power's current Gross Margin % of 49.38% is 57.5% 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 Reliance Power 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. Reliance Power's current Gross Margin % is 49.38%, which is near median its own 10-year median of 49.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Power stock overvalued right now?
Based on GuruFocus' analysis, Reliance Power (NSE:RPOWER) is currently considered Fairly Valued. The stock's GF Value™ is ₹30.00, compared to a current price of ₹27.17 — trading 9.4% below its estimated fair value. The current Gross Margin % is 49.38%, which is near median its 10-year median of 49.70 and 57.5% above the Utilities - Independent Power Producers industry median of 31.35. Reliance Power's overall GF Score™ is 64/100 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 Reliance Power (NSE:RPOWER), the current Gross Margin % is 49.38% 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 Reliance Power (NSE:RPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Power stock appears to be undervalued.
The current stock price of ₹27.17 is trading 9.4% below its estimated GF Value™ of ₹30.00.
GuruFocus considers Reliance Power to be Fairly Valued.
Key valuation signals for NSE:RPOWER:
Gross Margin %: 49.38% (near median its 10-year median of 49.70)
GF Value™: ₹30.00 vs. price of ₹27.17 (9.4% below fair value)
Industry Position: 57.5% above the Utilities - Independent Power Producers median (#113 of 403)
No single metric tells the full story. See the NSE:RPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance Power Ltd is an electric utility that constructs, develops, and operates power generation projects. Generation of power is its only operating segment and includes all of the firm's projects. Categorized as either operating, under construction, or under development, these projects generate electricity using thermal fuel sources or renewable resources. The company derives its revenue from the sale of energy, but support service agreements contribute as well.
64GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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