DuPont Decomposition
Why does BRNL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-7.4% = -19.2% × 0.11 × 3.57
Latest: FY2026
Profitability
Net Margin
-19.2%
-173.9% →-19.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.08x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.57x
5.59x →3.57x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 66.6 pp over 5 years. Driven by net margin improving (-173.9% → -19.2%), leverage falling (5.59x → 3.57x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -173.9% | 0.08 | 5.59 | -73.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -64.2% | 0.12 | 8.95 | -69.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -29.5% | 0.14 | 14.38 | -58.9% |
| FY2025 | ₹0Cr | ₹0Cr | 51.5% | 0.19 | 4.34 | 42.7% |
| FY2026 | ₹0Cr | ₹-0Cr | -19.2% | 0.11 | 3.57 | -7.4% |
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.