DuPont Decomposition
Why does JSWENERGY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 11.8% × 0.15 × 4.04
Latest: FY2026
Profitability
Net Margin
11.8%
21.6% →11.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.26x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.04x
1.78x →4.04x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 5 years. Driven by net margin declining (21.6% → 11.8%), asset turnover declining (0.26x → 0.15x), leverage rising (1.78x → 4.04x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.6% | 0.26 | 1.78 | 9.9% |
| FY2023 | ₹0Cr | ₹0Cr | 14.9% | 0.20 | 2.62 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 15.3% | 0.19 | 2.80 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 16.6% | 0.13 | 3.29 | 7.1% |
| FY2026 | ₹0Cr | ₹0Cr | 11.8% | 0.15 | 4.04 | 7.3% |
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.