DuPont Decomposition
Why does BHARTIARTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 12.7% × 0.38 × 3.70
Latest: FY2026
Profitability
Net Margin
12.7%
3.6% →12.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.32x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.70x
5.46x →3.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.5 pp over 5 years. Driven by net margin improving (3.6% → 12.7%), leverage falling (5.46x → 3.70x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.32 | 5.46 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 0.31 | 5.76 | 10.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 0.34 | 5.42 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 19.4% | 0.34 | 4.52 | 29.5% |
| FY2026 | ₹0Cr | ₹0Cr | 12.7% | 0.38 | 3.70 | 17.9% |
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.