DuPont Decomposition
Why does BBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.9% = 5.3% × 0.73 × 1.53
Latest: FY2026
Profitability
Net Margin
5.3%
4.4% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.76x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.48x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 0.76 | 1.48 | 5.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 0.69 | 1.49 | 6.0% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 0.74 | 1.34 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 0.73 | 1.35 | 6.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.3% | 0.73 | 1.53 | 5.9% |
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.