DuPont Decomposition
Why does DALBHARAT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 7.7% × 0.44 × 1.85
Latest: FY2026
Profitability
Net Margin
7.7%
10.4% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.46x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.54x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin declining (10.4% → 7.7%), leverage rising (1.54x → 1.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.4% | 0.46 | 1.54 | 7.3% |
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.52 | 1.63 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.8% | 0.52 | 1.69 | 5.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 0.46 | 1.74 | 3.9% |
| FY2026 | ₹0Cr | ₹0Cr | 7.7% | 0.44 | 1.85 | 6.3% |
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.