DuPont Decomposition
Why does DALMIASUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 6.5% × 0.66 × 1.70
Latest: FY2026
Profitability
Net Margin
6.5%
10.2% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.76x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.62x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.2 pp over 5 years. Driven by net margin declining (10.2% → 6.5%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.2% | 0.76 | 1.62 | 12.5% |
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.85 | 1.41 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 0.56 | 1.76 | 9.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.8% | 0.77 | 1.50 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 0.66 | 1.70 | 7.3% |
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.