DuPont Decomposition
Why does EBGNG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.4% = 7.0% × 1.51 × 1.65
Latest: FY2026
Profitability
Net Margin
7.0%
4.3% →7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
2.61x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
2.45x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.9 pp over 5 years. Driven by net margin improving (4.3% → 7.0%), asset turnover declining (2.61x → 1.51x), leverage falling (2.45x → 1.65x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 2.61 | 2.45 | 27.4% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 2.26 | 2.56 | 29.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.6% | 1.92 | 3.59 | 32.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.96 | 3.18 | 30.5% |
| FY2026 | ₹0Cr | ₹0Cr | 7.0% | 1.51 | 1.65 | 17.4% |
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.