DuPont Decomposition
Why does BEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.3% = 22.0% × 0.62 × 1.86
Latest: FY2026
Profitability
Net Margin
22.0%
15.9% →22.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.44x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
2.76x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 5 years. Driven by net margin improving (15.9% → 22.0%), asset turnover improving (0.44x → 0.62x), leverage falling (2.76x → 1.86x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.9% | 0.44 | 2.76 | 19.5% |
| FY2023 | ₹0Cr | ₹0Cr | 17.1% | 0.49 | 2.56 | 21.5% |
| FY2024 | ₹0Cr | ₹0Cr | 20.0% | 0.50 | 2.42 | 24.4% |
| FY2025 | ₹0Cr | ₹0Cr | 22.4% | 0.58 | 2.04 | 26.6% |
| FY2026 | ₹0Cr | ₹0Cr | 22.0% | 0.62 | 1.86 | 25.3% |
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.