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

11.6% = 13.6% × 0.23 × 3.73

Latest: FY2025

Profitability

Net Margin

13.6%

6.5% →13.6%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.23x

0.21x →0.23x

Revenue per ₹ of assets

Leverage

Equity Multiplier

3.73x

5.05x →3.73x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 4.7 pp over 3 years. Driven by net margin improving (6.5% → 13.6%), leverage falling (5.05x → 3.73x).

Historical Decomposition

Last 3 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20230Cr0Cr6.5%0.215.056.8%
FY20240Cr0Cr15.7%0.192.507.5%
FY20250Cr0Cr13.6%0.233.7311.6%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.

BRIGADE DuPont Analysis — ROE 11.6% | YieldIQ