DuPont Decomposition
Why does BRITANNIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
49.6% = 13.4% × 1.94 × 1.91
Latest: FY2026
Profitability
Net Margin
13.4%
10.9% →13.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.94x
1.85x →1.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
2.94x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.0 pp over 5 years. Driven by net margin improving (10.9% → 13.4%), leverage falling (2.94x → 1.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.9% | 1.85 | 2.94 | 59.6% |
| FY2023 | ₹0Cr | ₹0Cr | 14.5% | 1.71 | 2.65 | 65.7% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 1.82 | 2.30 | 54.3% |
| FY2025 | ₹0Cr | ₹0Cr | 12.4% | 1.98 | 2.03 | 50.0% |
| FY2026 | ₹0Cr | ₹0Cr | 13.4% | 1.94 | 1.91 | 49.6% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.