DuPont Decomposition
Why does PANACHE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.7% = 6.8% × 1.07 × 2.16
Latest: FY2026
Profitability
Net Margin
6.8%
0.9% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
0.89x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.16x
3.18x →2.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.0 pp over 5 years. Driven by net margin improving (0.9% → 6.8%), asset turnover improving (0.89x → 1.07x), leverage falling (3.18x → 2.16x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 0.89 | 3.18 | 2.6% |
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 1.09 | 3.25 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.6% | 1.00 | 3.03 | 1.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.9% | 1.02 | 1.72 | 10.4% |
| FY2026 | ₹0Cr | ₹0Cr | 6.8% | 1.07 | 2.16 | 15.7% |
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.