DuPont Decomposition
Why does BRIGADE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 11.3% × 0.22 × 3.85
Latest: FY2026
Profitability
Net Margin
11.3%
2.8% →11.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.19x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.85x
5.21x →3.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 5 years. Driven by net margin improving (2.8% → 11.3%), leverage falling (5.21x → 3.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 0.19 | 5.21 | 2.8% |
| FY2023 | ₹0Cr | ₹0Cr | 8.6% | 0.21 | 5.05 | 9.0% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 0.27 | 5.09 | 12.8% |
| FY2025 | ₹0Cr | ₹0Cr | 13.5% | 0.23 | 3.92 | 12.2% |
| FY2026 | ₹0Cr | ₹0Cr | 11.3% | 0.22 | 3.85 | 9.4% |
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.