DuPont Decomposition
Why does BHARATRAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 11.7% × 0.87 × 1.12
Latest: FY2026
Profitability
Net Margin
11.7%
13.6% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
1.19x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.41x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.4 pp over 5 years. Driven by net margin declining (13.6% → 11.7%), asset turnover declining (1.19x → 0.87x), leverage falling (1.41x → 1.12x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.6% | 1.19 | 1.41 | 22.9% |
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 1.15 | 1.20 | 13.9% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 0.86 | 1.21 | 9.7% |
| FY2025 | ₹0Cr | ₹0Cr | 12.0% | 0.83 | 1.25 | 12.5% |
| FY2026 | ₹0Cr | ₹0Cr | 11.7% | 0.87 | 1.12 | 11.4% |
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.