DuPont Decomposition
Why does BEPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 14.1% × 0.99 × 1.19
Latest: FY2026
Profitability
Net Margin
14.1%
25.1% →14.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.26x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.13x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.0 pp over 5 years. Driven by net margin declining (25.1% → 14.1%), asset turnover declining (1.26x → 0.99x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 25.1% | 1.26 | 1.13 | 35.7% |
| FY2023 | ₹0Cr | ₹0Cr | 10.0% | 1.17 | 1.09 | 12.8% |
| FY2024 | ₹0Cr | ₹0Cr | 14.7% | 1.16 | 1.14 | 19.4% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 1.27 | 1.10 | 18.0% |
| FY2026 | ₹0Cr | ₹0Cr | 14.1% | 0.99 | 1.19 | 16.6% |
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.