DuPont Decomposition
Why does AUROPHARMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 10.5% × 0.57 × 1.54
Latest: FY2026
Profitability
Net Margin
10.5%
11.3% →10.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.69x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.38x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 5 years. Driven by asset turnover declining (0.69x → 0.57x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 0.69 | 1.38 | 10.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.62 | 1.49 | 7.2% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 0.64 | 1.51 | 10.6% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.63 | 1.52 | 10.7% |
| FY2026 | ₹0Cr | ₹0Cr | 10.5% | 0.57 | 1.54 | 9.3% |
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.