DuPont Decomposition
Why does BDL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.9% = 17.4% × 0.17 × 3.36
Latest: FY2026
Profitability
Net Margin
17.4%
18.3% →17.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.42x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.36x
2.17x →3.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.6 pp over 5 years. Driven by asset turnover declining (0.42x → 0.17x), leverage rising (2.17x → 3.36x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.3% | 0.42 | 2.17 | 16.5% |
| FY2023 | ₹0Cr | ₹0Cr | 14.2% | 0.29 | 2.70 | 11.0% |
| FY2024 | ₹0Cr | ₹0Cr | 26.0% | 0.23 | 2.84 | 16.9% |
| FY2025 | ₹0Cr | ₹0Cr | 16.5% | 0.28 | 2.93 | 13.7% |
| FY2026 | ₹0Cr | ₹0Cr | 17.4% | 0.17 | 3.36 | 9.9% |
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.