DuPont Decomposition
Why does ADFFOODS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.7% = 13.2% × 0.91 × 1.32
Latest: FY2026
Profitability
Net Margin
13.2%
11.8% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.86x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.37x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 5 years. Driven by net margin improving (11.8% → 13.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 0.86 | 1.37 | 14.0% |
| FY2023 | ₹0Cr | ₹0Cr | 12.6% | 0.85 | 1.25 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 15.0% | 0.90 | 1.26 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 11.8% | 0.94 | 1.28 | 14.1% |
| FY2026 | ₹0Cr | ₹0Cr | 13.2% | 0.91 | 1.32 | 15.7% |
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.