DuPont Decomposition
Why does EMCURE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.7% = 10.0% × 0.96 × 1.94
Latest: FY2026
Profitability
Net Margin
10.0%
11.5% →10.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.95x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.94x
3.05x →1.94x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.6 pp over 5 years. Driven by net margin declining (11.5% → 10.0%), leverage falling (3.05x → 1.94x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.5% | 0.95 | 3.05 | 33.3% |
| FY2023 | ₹0Cr | ₹0Cr | 9.0% | 0.89 | 2.67 | 21.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 0.84 | 2.64 | 16.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 0.96 | 1.85 | 15.3% |
| FY2026 | ₹0Cr | ₹0Cr | 10.0% | 0.96 | 1.94 | 18.7% |
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.