DuPont Decomposition
Why does GMMPFAUDLR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.8% = 1.6% × 0.88 × 3.34
Latest: FY2026
Profitability
Net Margin
1.6%
3.4% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.88x
0.92x →0.88x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.34x
5.17x →3.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.3 pp over 5 years. Driven by net margin declining (3.4% → 1.6%), leverage falling (5.17x → 3.34x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 0.92 | 5.17 | 16.1% |
| FY2023 | ₹0Cr | ₹0Cr | 5.2% | 0.93 | 4.20 | 20.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 1.08 | 3.29 | 18.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 1.03 | 3.03 | 5.2% |
| FY2026 | ₹0Cr | ₹0Cr | 1.6% | 0.88 | 3.34 | 4.8% |
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.