DuPont Decomposition
Why does DABUR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.6% = 14.4% × 0.75 × 1.53
Latest: FY2026
Profitability
Net Margin
14.4%
16.1% →14.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.88x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.47x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.2 pp over 5 years. Driven by net margin declining (16.1% → 14.4%), asset turnover declining (0.88x → 0.75x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.1% | 0.88 | 1.47 | 20.8% |
| FY2023 | ₹0Cr | ₹0Cr | 14.9% | 0.84 | 1.52 | 19.0% |
| FY2024 | ₹0Cr | ₹0Cr | 15.0% | 0.81 | 1.53 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 14.1% | 0.77 | 1.50 | 16.4% |
| FY2026 | ₹0Cr | ₹0Cr | 14.4% | 0.75 | 1.53 | 16.6% |
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.