DuPont Decomposition
Why does BLUESTONE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.7% = 0.5% × 0.49 × 2.76
Latest: FY2026
Profitability
Net Margin
0.5%
-11.2% →0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.52x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.76x
6.56x →2.76x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 38.7 pp over 3 years. Driven by net margin improving (-11.2% → 0.5%), leverage falling (6.56x → 2.76x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹-0Cr | -11.2% | 0.52 | 6.56 | -38.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.5% | 0.50 | 3.90 | -24.5% |
| FY2026 | ₹0Cr | ₹0Cr | 0.5% | 0.49 | 2.76 | 0.7% |
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.