DuPont Decomposition
Why does GRINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 10.8% × 0.52 × 1.71
Latest: FY2026
Profitability
Net Margin
10.8%
9.8% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
0.72x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
2.43x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.7 pp over 5 years. Driven by asset turnover declining (0.72x → 0.52x), leverage falling (2.43x → 1.71x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.8% | 0.72 | 2.43 | 17.3% |
| FY2023 | ₹0Cr | ₹0Cr | 17.8% | 0.59 | 2.20 | 23.2% |
| FY2024 | ₹0Cr | ₹0Cr | 16.7% | 0.61 | 1.70 | 17.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.7% | 0.50 | 1.76 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 10.8% | 0.52 | 1.71 | 9.6% |
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.