DuPont Decomposition
Why does BHARATSE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.4% = 2.2% × 2.65 × 3.21
Latest: FY2026
Profitability
Net Margin
2.2%
1.5% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.65x
2.42x →2.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.21x
2.65x →3.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.0 pp over 5 years. Driven by asset turnover improving (2.42x → 2.65x), leverage rising (2.65x → 3.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 2.42 | 2.65 | 9.4% |
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 2.93 | 2.44 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 2.11 | 3.03 | 15.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.99 | 3.33 | 16.8% |
| FY2026 | ₹0Cr | ₹0Cr | 2.2% | 2.65 | 3.21 | 18.4% |
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.