DuPont Decomposition
Why does MAHEPC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.9% = 4.1% × 0.89 × 1.90
Latest: FY2026
Profitability
Net Margin
4.1%
-3.7% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.76x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.90x
1.60x →1.90x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.4 pp over 5 years. Driven by net margin improving (-3.7% → 4.1%), asset turnover improving (0.76x → 0.89x), leverage rising (1.60x → 1.90x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.7% | 0.76 | 1.60 | -4.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.9% | 0.83 | 1.55 | -7.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.6% | 1.02 | 1.56 | 1.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 0.93 | 1.69 | 4.2% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 0.89 | 1.90 | 6.9% |
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.