DuPont Decomposition
Why does MANGALAM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-43.1% = -19.1% × 0.74 × 3.06
Latest: FY2026
Profitability
Net Margin
-19.1%
4.4% →-19.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
1.36x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.06x
2.18x →3.06x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 56.1 pp over 5 years. Driven by net margin declining (4.4% → -19.1%), asset turnover declining (1.36x → 0.74x), leverage rising (2.18x → 3.06x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.4% | 1.36 | 2.18 | 13.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 1.02 | 2.37 | 0.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.5% | 1.10 | 2.46 | -6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.1% | 0.87 | 2.46 | 4.5% |
| FY2026 | ₹0Cr | ₹-0Cr | -19.1% | 0.74 | 3.06 | -43.1% |
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.