DuPont Decomposition
Why does DCMSIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.7% = -3.1% × 0.75 × 1.57
Latest: FY2026
Profitability
Net Margin
-3.1%
-3.1% →-3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.75x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.57x →1.57x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2026 | ₹0Cr | ₹-0Cr | -3.1% | 0.75 | 1.57 | -3.7% |
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.