DuPont Decomposition
Why does GPTINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.1% = 7.5% × 0.95 × 2.26
Latest: FY2026
Profitability
Net Margin
7.5%
3.6% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.93x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
2.81x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 5 years. Driven by net margin improving (3.6% → 7.5%), leverage falling (2.81x → 2.26x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.93 | 2.81 | 9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.03 | 2.82 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 1.39 | 2.40 | 19.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 1.26 | 1.80 | 15.3% |
| FY2026 | ₹0Cr | ₹0Cr | 7.5% | 0.95 | 2.26 | 16.1% |
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.