DuPont Decomposition
Why does ATALREAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 5.4% × 1.01 × 1.24
Latest: FY2026
Profitability
Net Margin
5.4%
5.3% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.83x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.46x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by asset turnover improving (0.83x → 1.01x), leverage falling (1.46x → 1.24x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 0.83 | 1.46 | 6.5% |
| FY2023 | ₹0Cr | ₹0Cr | 5.1% | 0.82 | 1.40 | 5.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.71 | 1.53 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.07 | 1.33 | 5.3% |
| FY2026 | ₹0Cr | ₹0Cr | 5.4% | 1.01 | 1.24 | 6.8% |
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.