DuPont Decomposition
Why does EMMBI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 1.7% × 0.99 × 2.31
Latest: FY2026
Profitability
Net Margin
1.7%
4.4% →1.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.23x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.31x
2.31x →2.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.4 pp over 5 years. Driven by net margin declining (4.4% → 1.7%), asset turnover declining (1.23x → 0.99x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 1.23 | 2.31 | 12.4% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 1.01 | 2.28 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.97 | 2.28 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 1.5% | 0.98 | 2.21 | 3.3% |
| FY2026 | ₹0Cr | ₹0Cr | 1.7% | 0.99 | 2.31 | 4.0% |
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.