DuPont Decomposition
Why does E2E earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.9% = -6.3% × 0.11 × 1.38
Latest: FY2026
Profitability
Net Margin
-6.3%
12.4% →-6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
1.08x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.25x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.7 pp over 5 years. Driven by net margin declining (12.4% → -6.3%), asset turnover declining (1.08x → 0.11x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.4% | 1.08 | 1.25 | 16.8% |
| FY2023 | ₹0Cr | ₹0Cr | 15.0% | 0.97 | 1.38 | 20.1% |
| FY2024 | ₹0Cr | ₹0Cr | 23.1% | 0.37 | 3.60 | 30.9% |
| FY2025 | ₹0Cr | ₹0Cr | 29.0% | 0.06 | 1.62 | 3.0% |
| FY2026 | ₹0Cr | ₹-0Cr | -6.3% | 0.11 | 1.38 | -0.9% |
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.