DuPont Decomposition
Why does ENRIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.1% = 14.1% × 0.82 × 2.18
Latest: FY2026
Profitability
Net Margin
14.1%
12.6% →14.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.68x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.18x
2.19x →2.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.5 pp over 2 years. Driven by net margin improving (12.6% → 14.1%), asset turnover improving (0.68x → 0.82x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 12.6% | 0.68 | 2.19 | 18.6% |
| FY2026 | ₹0Cr | ₹0Cr | 14.1% | 0.82 | 2.18 | 25.1% |
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.