DuPont Decomposition
Why does ALEMBICLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.0% = 132.3% × 0.09 × 1.06
Latest: FY2026
Profitability
Net Margin
132.3%
311.1% →132.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.03x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.06x
1.05x →1.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 5 years. Driven by net margin declining (311.1% → 132.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 311.1% | 0.03 | 1.05 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 161.1% | 0.05 | 1.06 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 182.6% | 0.06 | 1.07 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 140.0% | 0.09 | 1.07 | 13.3% |
| FY2026 | ₹0Cr | ₹0Cr | 132.3% | 0.09 | 1.06 | 13.0% |
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.