DuPont Decomposition
Why does EPIGRAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 13.3% × 0.71 × 1.58
Latest: FY2026
Profitability
Net Margin
13.3%
16.3% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.73x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.58x
2.93x →1.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.9 pp over 5 years. Driven by net margin declining (16.3% → 13.3%), leverage falling (2.93x → 1.58x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.3% | 0.73 | 2.93 | 34.8% |
| FY2023 | ₹0Cr | ₹0Cr | 16.3% | 0.89 | 2.28 | 33.0% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 0.68 | 2.23 | 15.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.80 | 1.66 | 18.8% |
| FY2026 | ₹0Cr | ₹0Cr | 13.3% | 0.71 | 1.58 | 14.9% |
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.