DuPont Decomposition
Why does BAFNAPH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 7.4% × 0.86 × 1.83
Latest: FY2026
Profitability
Net Margin
7.4%
6.1% →7.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.94x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
1.45x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.1 pp over 5 years. Driven by net margin improving (6.1% → 7.4%), leverage rising (1.45x → 1.83x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.1% | 0.94 | 1.45 | 8.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.89 | 1.76 | 15.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.03 | 1.83 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 0.95 | 1.81 | 4.9% |
| FY2026 | ₹0Cr | ₹0Cr | 7.4% | 0.86 | 1.83 | 11.5% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.