DuPont Decomposition
Why does GRPLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.8% = 0.6% × 1.16 × 2.59
Latest: FY2026
Profitability
Net Margin
0.6%
1.5% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
1.30x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.59x
2.17x →2.59x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.4 pp over 5 years. Driven by asset turnover declining (1.30x → 1.16x), leverage rising (2.17x → 2.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 1.30 | 2.17 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.55 | 1.94 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 1.28 | 2.05 | 13.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 1.34 | 2.15 | 16.0% |
| FY2026 | ₹0Cr | ₹0Cr | 0.6% | 1.16 | 2.59 | 1.8% |
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.