DuPont Decomposition
Why does GANDHITUBE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.6% = 35.6% × 0.56 × 1.08
Latest: FY2026
Profitability
Net Margin
35.6%
29.1% →35.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.80x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.13x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 5 years. Driven by net margin improving (29.1% → 35.6%), asset turnover declining (0.80x → 0.56x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 29.1% | 0.80 | 1.13 | 26.2% |
| FY2023 | ₹0Cr | ₹0Cr | 29.1% | 0.80 | 1.11 | 26.0% |
| FY2024 | ₹0Cr | ₹0Cr | 33.4% | 0.69 | 1.09 | 24.9% |
| FY2025 | ₹0Cr | ₹0Cr | 34.0% | 0.60 | 1.08 | 22.1% |
| FY2026 | ₹0Cr | ₹0Cr | 35.6% | 0.56 | 1.08 | 21.6% |
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.