DuPont Decomposition

Why does PNGSREVA earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

12.6% = 14.7% × 0.61 × 1.39

Latest: FY2026

Profitability

Net Margin

14.7%

10.2% →14.7%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.61x

0.28x →0.61x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.39x

2.26x →1.39x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 6.0 pp over 2 years. Driven by net margin improving (10.2% → 14.7%), asset turnover improving (0.28x → 0.61x), leverage falling (2.26x → 1.39x).

Historical Decomposition

Last 2 years

Year	Revenue	PAT	Net Margin	Asset TO	Leverage	ROE
FY2025	₹0Cr	₹0Cr	10.2%	0.28	2.26	6.6%
FY2026	₹0Cr	₹0Cr	14.7%	0.61	1.39	12.6%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.