DuPont Decomposition
Why does BIRLANU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.8% = -3.2% × 1.21 × 2.77
Latest: FY2026
Profitability
Net Margin
-3.2%
6.0% →-3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.58x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.77x
1.91x →2.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.8 pp over 5 years. Driven by net margin declining (6.0% → -3.2%), asset turnover declining (1.58x → 1.21x), leverage rising (1.91x → 2.77x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.0% | 1.58 | 1.91 | 18.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 1.47 | 1.90 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 1.22 | 2.19 | 2.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.9% | 1.24 | 2.42 | -2.7% |
| FY2026 | ₹0Cr | ₹-0Cr | -3.2% | 1.21 | 2.77 | -10.8% |
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.