DuPont Decomposition
Why does GTPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.2% = 0.4% × 1.14 × 2.58
Latest: FY2026
Profitability
Net Margin
0.4%
4.3% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.14x
0.98x →1.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.58x
2.46x →2.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.1 pp over 4 years. Driven by net margin declining (4.3% → 0.4%), asset turnover improving (0.98x → 1.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 0.98 | 2.46 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 1.05 | 2.63 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 1.06 | 2.53 | 3.7% |
| FY2026 | ₹0Cr | ₹0Cr | 0.4% | 1.14 | 2.58 | 1.2% |
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.