DuPont Decomposition
Why does PIDILITIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.6% = 16.8% × 0.95 × 1.42
Latest: FY2026
Profitability
Net Margin
16.8%
12.2% →16.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
1.04x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
1.49x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 5 years. Driven by net margin improving (12.2% → 16.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.2% | 1.04 | 1.49 | 18.9% |
| FY2023 | ₹0Cr | ₹0Cr | 10.8% | 1.12 | 1.46 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 14.0% | 1.02 | 1.44 | 20.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.8% | 0.94 | 1.44 | 21.3% |
| FY2026 | ₹0Cr | ₹0Cr | 16.8% | 0.95 | 1.42 | 22.6% |
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.