DuPont Decomposition
Why does COLPAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
83.7% = 22.1% × 1.76 × 2.15
Latest: FY2026
Profitability
Net Margin
22.1%
21.3% →22.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.76x
1.75x →1.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.15x
1.67x →2.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 21.5 pp over 5 years. Driven by leverage rising (1.67x → 2.15x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.3% | 1.75 | 1.67 | 62.2% |
| FY2023 | ₹0Cr | ₹0Cr | 20.2% | 1.80 | 1.68 | 61.0% |
| FY2024 | ₹0Cr | ₹0Cr | 23.4% | 1.77 | 1.71 | 70.6% |
| FY2025 | ₹0Cr | ₹0Cr | 23.9% | 1.99 | 1.81 | 86.3% |
| FY2026 | ₹0Cr | ₹0Cr | 22.1% | 1.76 | 2.15 | 83.7% |
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.