DuPont Decomposition
Why does PODDARMENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.2% = 3.9% × 0.91 × 1.18
Latest: FY2026
Profitability
Net Margin
3.9%
7.3% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.83x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.11x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.5 pp over 5 years. Driven by net margin declining (7.3% → 3.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.3% | 0.83 | 1.11 | 6.7% |
| FY2023 | ₹0Cr | ₹0Cr | 8.1% | 1.02 | 1.13 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.9% | 0.94 | 1.12 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.2% | 0.89 | 1.14 | 6.3% |
| FY2026 | ₹0Cr | ₹0Cr | 3.9% | 0.91 | 1.18 | 4.2% |
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.