DuPont Decomposition
Why does PASHUPATI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 1.5% × 2.24 × 1.87
Latest: FY2026
Profitability
Net Margin
1.5%
1.9% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.24x
1.94x →2.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.83x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 5 years. Driven by asset turnover improving (1.94x → 2.24x), leverage falling (2.83x → 1.87x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 1.94 | 2.83 | 10.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.1% | 1.19 | 2.77 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 2.10 | 2.62 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 2.13 | 1.94 | 9.1% |
| FY2026 | ₹0Cr | ₹0Cr | 1.5% | 2.24 | 1.87 | 6.3% |
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.