DuPont Decomposition
Why does PGHL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
62.3% = 23.2% × 1.67 × 1.60
Latest: FY2026
Profitability
Net Margin
23.2%
17.8% →23.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.67x
1.00x →1.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.40x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 37.2 pp over 5 years. Driven by net margin improving (17.8% → 23.2%), asset turnover improving (1.00x → 1.67x), leverage rising (1.40x → 1.60x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.8% | 1.00 | 1.40 | 25.1% |
| FY2023 | ₹0Cr | ₹0Cr | 17.6% | 1.23 | 1.44 | 31.2% |
| FY2024 | ₹0Cr | ₹0Cr | 19.0% | 1.10 | 1.47 | 30.6% |
| FY2025 | ₹0Cr | ₹0Cr | 17.8% | 1.42 | 1.48 | 37.3% |
| FY2026 | ₹0Cr | ₹0Cr | 23.2% | 1.67 | 1.60 | 62.3% |
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.