DuPont Decomposition
Why does BAJAJINDEF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 11.4% × 0.63 × 1.23
Latest: FY2026
Profitability
Net Margin
11.4%
19.1% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.59x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.19x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.8 pp over 2 years. Driven by net margin declining (19.1% → 11.4%).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 19.1% | 0.59 | 1.19 | 13.5% |
| FY2026 | ₹0Cr | ₹0Cr | 11.4% | 0.63 | 1.23 | 8.8% |
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.