DuPont Decomposition
Why does FRACTAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 8.9% × 0.75 × 1.38
Latest: FY2026
Profitability
Net Margin
8.9%
10.2% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.88x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.67x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.9 pp over 4 years. Driven by net margin declining (10.2% → 8.9%), asset turnover declining (0.88x → 0.75x), leverage falling (1.67x → 1.38x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 0.88 | 1.67 | 15.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.2% | 0.92 | 1.70 | -3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 0.97 | 1.63 | 12.7% |
| FY2026 | ₹0Cr | ₹0Cr | 8.9% | 0.75 | 1.38 | 9.2% |
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.