DuPont Decomposition
Why does PGIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.0% = 5.5% × 1.55 × 2.22
Latest: FY2026
Profitability
Net Margin
5.5%
2.6% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.55x
1.48x →1.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.22x
2.97x →2.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 5 years. Driven by net margin improving (2.6% → 5.5%), leverage falling (2.97x → 2.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 1.48 | 2.97 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 1.71 | 2.46 | 20.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.2% | 1.70 | 2.48 | 21.8% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 1.74 | 2.25 | 21.5% |
| FY2026 | ₹0Cr | ₹0Cr | 5.5% | 1.55 | 2.22 | 19.0% |
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.