DuPont Decomposition
Why does EMUDHRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.8% = 15.4% × 0.58 × 1.33
Latest: FY2026
Profitability
Net Margin
15.4%
22.7% →15.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.70x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.70x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.3 pp over 5 years. Driven by net margin declining (22.7% → 15.4%), asset turnover declining (0.70x → 0.58x), leverage falling (1.70x → 1.33x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.7% | 0.70 | 1.70 | 27.1% |
| FY2023 | ₹0Cr | ₹0Cr | 24.8% | 0.54 | 1.17 | 15.8% |
| FY2024 | ₹0Cr | ₹0Cr | 20.1% | 0.50 | 1.14 | 11.4% |
| FY2025 | ₹0Cr | ₹0Cr | 16.3% | 0.60 | 1.16 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 15.4% | 0.58 | 1.33 | 11.8% |
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.