DuPont Decomposition
Why does BLS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.9% = 22.9% × 0.80 × 1.53
Latest: FY2026
Profitability
Net Margin
22.9%
13.1% →22.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
1.34x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.11x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.3 pp over 5 years. Driven by net margin improving (13.1% → 22.9%), asset turnover declining (1.34x → 0.80x), leverage rising (1.11x → 1.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.1% | 1.34 | 1.11 | 19.5% |
| FY2023 | ₹0Cr | ₹0Cr | 13.2% | 1.60 | 1.18 | 25.0% |
| FY2024 | ₹0Cr | ₹0Cr | 18.7% | 1.04 | 1.34 | 25.9% |
| FY2025 | ₹0Cr | ₹0Cr | 23.2% | 0.78 | 1.62 | 29.4% |
| FY2026 | ₹0Cr | ₹0Cr | 22.9% | 0.80 | 1.53 | 27.9% |
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.