DuPont Decomposition
Why does BAJAJELEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.7% = -2.0% × 1.04 × 2.67
Latest: FY2026
Profitability
Net Margin
-2.0%
2.7% →-2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
1.18x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.67x
2.31x →2.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.1 pp over 5 years. Driven by net margin declining (2.7% → -2.0%), asset turnover declining (1.18x → 1.04x), leverage rising (2.31x → 2.67x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.7% | 1.18 | 2.31 | 7.4% |
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 0.97 | 2.62 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 1.21 | 2.66 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 1.14 | 2.45 | 7.7% |
| FY2026 | ₹0Cr | ₹-0Cr | -2.0% | 1.04 | 2.67 | -5.7% |
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.