DuPont Decomposition
Why does GMRP&UI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
31.5% = 8.2% × 0.43 × 8.96
Latest: FY2026
Profitability
Net Margin
8.2%
22.3% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.37x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.96x
28.94x →8.96x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 210.0 pp over 2 years. Driven by net margin declining (22.3% → 8.2%), leverage falling (28.94x → 8.96x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 22.3% | 0.37 | 28.94 | 241.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.2% | 0.43 | 8.96 | 31.5% |
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.