DuPont Decomposition
Why does ADANIPORTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 33.1% × 0.21 × 1.93
Latest: FY2026
Profitability
Net Margin
33.1%
28.8% →33.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.17x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
2.37x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 5 years. Driven by net margin improving (28.8% → 33.1%), leverage falling (2.37x → 1.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 28.8% | 0.17 | 2.37 | 11.6% |
| FY2023 | ₹0Cr | ₹0Cr | 25.5% | 0.18 | 2.52 | 11.7% |
| FY2024 | ₹0Cr | ₹0Cr | 30.4% | 0.22 | 2.25 | 15.3% |
| FY2025 | ₹0Cr | ₹0Cr | 36.4% | 0.23 | 2.17 | 17.8% |
| FY2026 | ₹0Cr | ₹0Cr | 33.1% | 0.21 | 1.93 | 13.3% |
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.