DuPont Decomposition
Why does ENIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.0% = -1.4% × 0.46 × 1.59
Latest: FY2026
Profitability
Net Margin
-1.4%
-11.4% →-1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.29x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.45x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 5 years. Driven by net margin improving (-11.4% → -1.4%), asset turnover improving (0.29x → 0.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -11.4% | 0.29 | 1.45 | -4.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -32.8% | 0.42 | 2.03 | -27.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.42 | 1.63 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.1% | 0.45 | 1.54 | 1.5% |
| FY2026 | ₹0Cr | ₹-0Cr | -1.4% | 0.46 | 1.59 | -1.0% |
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.