DuPont Decomposition
Why does BORORENEW earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.5% = 8.3% × 0.85 × 1.21
Latest: FY2026
Profitability
Net Margin
8.3%
25.8% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.61x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.34x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.6 pp over 5 years. Driven by net margin declining (25.8% → 8.3%), asset turnover improving (0.61x → 0.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 25.8% | 0.61 | 1.34 | 21.1% |
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.55 | 1.78 | 7.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.4% | 0.81 | 1.93 | -5.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -4.7% | 1.02 | 1.46 | -7.0% |
| FY2026 | ₹0Cr | ₹0Cr | 8.3% | 0.85 | 1.21 | 8.5% |
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.