DuPont Decomposition
Why does GRANULES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 11.1% × 0.69 × 1.52
Latest: FY2026
Profitability
Net Margin
11.1%
11.0% →11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.83x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
1.74x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.3 pp over 5 years. Driven by asset turnover declining (0.83x → 0.69x), leverage falling (1.74x → 1.52x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.0% | 0.83 | 1.74 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 11.5% | 0.92 | 1.73 | 18.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.0% | 0.81 | 1.71 | 12.6% |
| FY2025 | ₹0Cr | ₹0Cr | 11.3% | 0.71 | 1.68 | 13.5% |
| FY2026 | ₹0Cr | ₹0Cr | 11.1% | 0.69 | 1.52 | 11.7% |
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.