DuPont Decomposition
Why does GPPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.6% = 44.5% × 0.38 × 1.27
Latest: FY2026
Profitability
Net Margin
44.5%
28.7% →44.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.25x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.22x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.8 pp over 5 years. Driven by net margin improving (28.7% → 44.5%), asset turnover improving (0.25x → 0.38x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 28.7% | 0.25 | 1.22 | 8.8% |
| FY2023 | ₹0Cr | ₹0Cr | 37.0% | 0.29 | 1.24 | 13.6% |
| FY2024 | ₹0Cr | ₹0Cr | 37.1% | 0.31 | 1.27 | 14.8% |
| FY2025 | ₹0Cr | ₹0Cr | 40.3% | 0.34 | 1.26 | 17.0% |
| FY2026 | ₹0Cr | ₹0Cr | 44.5% | 0.38 | 1.27 | 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.