DuPont Decomposition
Why does BORANA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.9% = 16.6% × 1.06 × 1.30
Latest: FY2026
Profitability
Net Margin
16.6%
4.3% →16.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.33x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
17.64x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 76.5 pp over 4 years. Driven by net margin improving (4.2% → 16.6%), asset turnover declining (1.33x → 1.06x), leverage falling (17.64x → 1.30x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 1.33 | 17.64 | 99.5% |
| FY2023 | ₹0Cr | ₹0Cr | 12.0% | 1.81 | 3.11 | 67.6% |
| FY2024 | ₹0Cr | ₹0Cr | 11.8% | 1.45 | 2.87 | 49.5% |
| FY2026 | ₹0Cr | ₹0Cr | 16.6% | 1.06 | 1.30 | 22.9% |
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.