DuPont Decomposition
Why does PIRAMALFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 13.6% × 0.10 × 3.93
Latest: FY2026
Profitability
Net Margin
13.6%
11.8% →13.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
5.73x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.93x
3.59x →3.93x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 238.1 pp over 5 years. Driven by net margin improving (11.8% → 13.6%), asset turnover declining (5.73x → 0.10x), leverage rising (3.59x → 3.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 5.73 | 3.59 | 243.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -113.9% | 10.44 | 4.21 | -5007.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -30.1% | 9.97 | 4.42 | -1326.2% |
| FY2025 | ₹0Cr | ₹0Cr | 5.4% | 11.48 | 4.66 | 291.4% |
| FY2026 | ₹0Cr | ₹0Cr | 13.6% | 0.10 | 3.93 | 5.3% |
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.